Reports from India suggest that the TATA Sons-Sasol JV Strategic Energy Technology Systems and Jindal Steel and Power will not be able to divert surplus coal from the promotional mining blocks allotted for the USD 18 billion projects to convert coal into liquid petroleum.
A senior official in the Coal Ministry said “In the allotment letters, we have categorically stated that the coal mined from the two blocks has to be used exclusively for coal to liquid projects.”
The Indian government this month allocated Ramchandi and Shrirampur coal blocks in Orissa to Strategic Energy Technology Systems and Jindal Steel and Power Ltd, respectively. Each of the coal blocks has an estimated reserve of 1.5 billion tonne and is to be used for converting the dry fuel into liquid petroleum.
Companies have to seek permission from the government if they want to use the surplus coal allotted for captive purposes for any of their other projects.
The official said the case of two CTL projects, however, the allottees intending to utilize extra coal for steel, power or any other sectors are unlikely to be allowed by the central government to do so.
Source: Steel Guru/Press Trust Of India
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