SAIL seeks more blocks for coal-to-liquid projects

Sanjay Jog
Posted: 2008-08-09 23:56:26+05:30 IST
Updated: Aug 09, 2008 at 2356 hrs IST

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Steel Authority of India Limited (SAIL) has called upon the coal ministry to allocate coal blocks for coal-to-Liquid (CTL) projects. This is in response to the coal ministry’s move to invite applications for the allotment of coal blocks for CTL project. The blocks offered are Ramchandi Promotional Coal Block, Palasbani Coal Block and North of Arkhapal-Srirampur Coal Block.

SAIL has informed the coal ministry that it envisages to develop the coal blocks for the run-of-mine (ROM) capacity of above 30 mtpa and utilise the ROM coal for coal gasification/coal-to-liquid conversion so that the products can be utilised for partially substituting coking coal in blast furnaces or for power generation. For this purpose SAIL has already initiated process to enter into tie-up with a suitable technology provider for CTL. SAIL has requisite funds for development of mine and installation of coal-to-liquid project.

Sources told FE, SAIL in its recent communication to the coal ministry has informed that its current level of hot metal output being around 15 million mtpa. SAIL is in the process of implementing growth plan to raise hot metal capacity to over 26 mtpa by 2010-11. SAIL has also finalised its strategy to grow beyond 2010-11 in line with the National Steel Policy and achieve hot metal capacity of 60 mtpa by 2020. According to SAIL, the implementation of above growth plan will lead to increase in coking coal requirement to the tune of 23 mtpa by 2010-11 & to 50 mtpa by 2020 against the present level of 14 mtpa.

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SAIL seeks more blocks for coal-to-liquid projects

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