Odisha prepares draft pact for Jindal’s Rs 42K cr CTL project

Bhubaneswar: Odisha government has prepared a draft pact for the proposed Rs 42,000 crore coal-to-liquid (CTL) project of Jindal Synfuels Ltd without providing any assurance for the raw material supplies, according to official sources here today.

Although there is no provision of making any assured raw material supply in the draft MoU, the sources said that the state government has agreed to extend all requisite help to JSFL in getting clearance for the development of Ramachandi coal block allotted to it by the Centre.

JSFL is a subsidiary of Jindal Steel & Power Ltd.

Earlier, JSFL had proposed to launch a CTL project with a capacity of producing 80,000 barrels of oil per day from coal at Durgapur plant in Angul district. The company also proposed to set up a 1,100-MW captive power plant based on coal washery rejects and a 50 mpta coal washery.

The draft MoU allows JSFL to draw water from river Mahanadi and the company will submit a detailed water management and utilisation plan for due clearance from the water resource department of the state.

The pact will be signed for nine years, with a provision that the project will be reviewed every three years. The company has to submit milestone reports in the third and the sixth year.

JSFL requires 5,000 acres for the CTL project at Durgapur in Angul district along with other auxiliary utilities.