Nod for $8bn Tata-Sasol project
Significantly, unlike its earlier proposal, the Tata-Sasol project does not seek any tax concession/ subsidy from the government or protection from the market risk of oil prices falling below a certain level.
Officials said the Tata-Sasol project got clearance on February 27 from IGP chairman Dr Kirit Parikh, who is also a member (energy) of the Planning Commission. The project has now been recommended for coal block allocation by the ministry of coal.
The Tata group has sought access to 30 million tonnes per annum of black diamond for producing 3 million barrels of oil and 1,500 mw of power for the CTL project.
For the CTL plant in India, Sasol will use the Fischer Tropsch technology, which converts the syngas, extracted from coal into oil, which in turn can be refined to produce diesel, naphtha, jet fuel, LPG and lubricants. The project would save over $25 billion for the exchequer through crude import substitution.
The IMG earlier had reservations over the significant energy penalty implicit in the conversion process. Sources said a calculation circulated in the last IMG meeting showed that in financial terms, the cost of import is tilted in favour of coal at the level of
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