Is India ready for CTL fuels?

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generation and the fact that India only has an estimated 56-71 bt of reserves, out of 250 bt in resources. Under these conditions, investing in CTL might compromise the ability to meet electricity demand using domestic coal. So, large CTL plants will exacerbate coal import dependence and could threaten India’s energy security.

Furthermore, the volatility of oil prices dramatically affects the commercial viability of CTL plants. In the late ’70s, assuming high oil prices, the US invested in six CTL projects. But by the early ’80s, all its products became unviable due to a sustained drop in oil prices.These were terminated in 1985. Hence, companies are demanding government subsidies and incentives to maintain commercial viability. However, specific incentives just for CTL would promote distortions.