The proposed coal-to-liquids (CTL) plant the first of its kind in Indiawas likely to result in annual import substitution benefits of about $25 billion (about Rs 1,02,500 crore) for the country, said an executive involved with the project. Tata group chairman Ratan Tata has already discussed the proposal with the finance ministry, the Planning Commission and the Prime Ministers Office.
At present, the coal ministry is studying the proposal. Since CTL is new to India, Sasol has asked the government that it be notified as an approved end-user for captive mining. It also sought clearance for rapid investigation of select coal blocks containing reserves of 1.5-2 billion tonne, an official said.
The company, which produces more than 40% of South Africas motor fuel, has further asked the government to reserve at east two possible sites for building CTL plants. It also wants a system of incentives to promote the CTL industry.
Sasol wants to be notified by the Centre as an approved end-user for captive mining
When contacted, a spokesperson of the Tatas said the group did not wish to comment on speculation.