Coal-to-liquid in India may have to wait

South Africa’s Sasol, Tata, Reliance, the Ruias of Essar, Jindal Steel & Power and the Adani Group may have evinced an interest in getting into coal to liquid (CTL) projects in India, but the Union coal ministry isn’t too keen on allocating coal blocks to these entities. A viable coal liquefaction project requires at least 20 million tons of coal per year and Coal India, the country’s largest coal supplier, is not yet in a position to offer coal after meeting its demand from existing customers and thermal power plants. “Such a project will require 20 million tons of coal every year, supplying which, currently, will turn out to be a daunting task for CIL,” said a senior CIL official. (May 7, 2008)