Stage set for MoU with Jindal Synfuels for Rs 42,000 crore CTL project

Sambad English Bureau Published On : Sep 17, 2013 at 6:34 PM Updated On : Sep 17, 2013 at 6:44 PM

Reported by Chinmay Dehury

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The stage is set for the signing of a Memorandum of Understanding (MoU) between the Odisha government and Jindal Synfuels Ltd (JSFL) for a Rs 42,000 crore Coal-to-Liquid (CTL) project. Reports say the state government has already prepared the draft MoU, likely to be signed soon.

The CTL project which will come up at Durgapur in Angul district, envisages a production of 80,000 barrels of oil per day. Besides, JSFL will set up a 1,100 mw captive power plant based on coal washery rejects and a 50 mpta coal washery.

The Odisha government has decided to sign an MoU soon with JSFL for nine years.

According to the draft MoU, there shall be no assurances for raw material linkage by the state government for the project. However, the government will extend requisite help to JSFL in getting the clearance for development of Ramachandi coal block allotted by the government of Indi to JSFL.

The project will draw water from river Mahanadi and Jindal will submit a detailed water management and utilization plan for due clearance from Water Resource department.

“The draft MoU to be signed with Jindal Synfuels is ready. It has been decided that the MoU tenure shall be for nine years with a clause that after every three years, the project will be reviewed. The company has to submit milestones to be achieved in three years and in six years to the industries department”, an industries department source said adding the MoU could be terminated if there is wilful violation by the company in achieving the milestones.

The project requires 5000 acres of land for the CTL project along with other auxiliary utilities. Sources said, the government has decided to provide at least 50 per cent land to Jindal Synfuels without waiting for benchmarking and other detailed analysis.

A host of milestones have to be achieved within three years from the date of signing of the MoU – finalisation of land and water assessment by state owned Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol), securing prospecting license for Ramchandi coal block allocated for the project, exploration of the coal block and commencement of land acquisition process.