Reliance companies meet India's criteria to bid for CTL project

Mukesh Ambanis Reliance Industries Ltd. (RIL) and Anil Ambani’s Reliance Infrastructure are the only two companies that have qualified for the US$6-8 billion project to convert coal into oil, as per the criteria set by the Indian government. Both firms were the only ones to meet the minimum net worth criteria of Rs4,000 crore (US$860.11 million) and had an agreement with a foreign firm for coal-to-liquid (CTL) technology, sources in the Coal Ministry said. Besides the Ambanis, seven firms met the minimum net worth criteria, including Steel Authority of India Ltd. (SAIL), GAIL India, GMR Infrastructure, IOC and JSW Steel. Among these, SAIL and JSW did not meet the eligibility criteria of having a collaboration with a proven technology provider, while GAIL, GMR and IOC only furnished assurance letters from the technology provider but no documents related to a memorandum of understanding were provided. Sources said on preliminary examination of the 22 bids received for the CTL project at Radhikapur coal block, Srirampur block and Ramchandi Promotional coal block in Orissa, seven more companies met the net worth criteria if their parent firms’ balance sheets were taken into account. Sources said an Inter-Ministerial Group will decide if assurance letters for technology tie-ups and parent company net worth would qualify a company for the CTL project. (August 25, 2008)