Odisha asks Jindal Synfuels to take up cost evaluation of CTL project
The Odisha industries department has urged Jindal Synfuels Ltd, a subsidiary of Jindal Steel & Power Ltd (JSPL), to undertake cost evaluation of petroleum products to be extracted from its Rs 60,000-crore coal-to-liquid (CTL) project proposed in the state.
The cost evaluation can be done through a reputed agency, the government has suggested to the company.
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The CTL project, to come up at Durgapur in Angul district, envisages production of 80,000 barrels of oil per day. The product range includes petrol, diesel, kerosene and aviation fuel.
The project needs around 4,000 acres of land and it is expected to generate direct and indirect employment for 30,000 people. The state government has allotted 90 cusecs of water to it from the Mahanadi river.
Meanwhile, the draft of the MoU to be signed with Jindal Synfuels is ready. The tenure of the MoU will 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 six years to the industries department. The milestones to be achieved within three years from the date of MoU execution are finalisation of land and water assessment by state owned Industrial Promotion & Investment Corporation of Odisha (Ipicol), securing prospecting license for Ramchandi coal block allocated for the project, exploration of the coal block and start of land acquisition activities.
Other activities to be taken up include submission of detailed feasibility report for water management plan, preparation of environment impact assessment (EIA) as well as socio-economic study for the CTL project and coal mine, sampling and testing of coal and commencement of rehabilitation & resettlement (R&R) activities.
The draft MoU also stipulates activities to be taken up from the fourth to sixth year. These are continuation of land acquisition and R&R for balance land, applying for mining lease for the coal block, securing environment & forest clearances for the CTL project and obtaining consent to establish from the State Pollution Control Board (SPCB).
Since the project is coming up in the critically polluted Angul-Talcher cluster, the SPCB may impose such conditions as necessary to ensure that the environment quality of the area is not adversely affected and the proponent may be required to adopt advanced pollution control technology.