JSPL sets up India’s first coal-gas plant at Angul

Mar 14, 2013 12:00 AM

At a time when India is facing extreme shortage of crude and gas for power, steel and fertiliser companies, Jindal Steel and Power (JSPL) is setting up India’s first coal-to-gas plant and world’s largest coal-to-liquid plant for Rs 60,000 crore to overcome the shortage of gas and oil products such as ethanol, methanol, petrol and high-speed diesel that would take care of Jindal’s requirement and meet India’s concern.

The coal-to-liquid plant at Angul is in a technological tie-up with a French company and the coal would be sourced from the Ramchandi mine nearby. It will produce 80,000 barrels per day from 4 million tonne of coal per year. “The plant will be ready by 2019, provided we receive the assured guarantee on the Ramchandi coal mine. It will require around Rs 55,000 crore on setting up the plant,” said Ravi Uppal, MD of JSPL.

They are also in the process of setting up the world’s largest coal-to-gas plant or a coal gassifier. The coal for the plants are sourced from a nearby captive Utkal B1 mine with a resource potential of 120 million tonne. The coal gassifier will produce 2.5 million cubic metre of synthesis gas per day from 2.4 million tonnes of coal per annum.

Uppal told that the firm is tying up with oil marketing companies to sell the pure form of oil, that is diesel, naptha, gasoline and petrol, that it would receive after converting coal to liquid.

“On an average we would receive one metric tonne of oil on converting six metric tonne of coal. On that count the JSPL’s coal mine of 1.25 billion tonne can produce roughly 300 million tonne of oil that is qualified as Euro VI grade oil that none of the refineries in India produce at present,” he added.

In the second phase of expansion, the company is also ramping its capacity to 6 million tonne from 1.5 million tonne of steel plate capacity. The company plans to produce cold rolled steel and other value added products by 2015 end at a cost of Rs 14,000 crore with Rs 5,000 crore coming through internal accruals

JSPL, at present, has a steel-making capacity of 4.5 million tonne across India, including the three million tonne capacity at Raigarh in Chattisgarh. The other 4.5 million tonne would come up in Angul, while three million tonne is getting ready in Patratu in Jharkhand. The company is also getting ready two million tonne in Oman, taking the total capacity to 14 million tonne by 2015 end. All put together, JSPL will spend additional around Rs 23,000 crore. It has already spend around 16,000 crore in Angul.

The company believes the issue of land acquisition in Odisha would slowly get resolved. They already have around 2,600 acre with them and they have paid for 4,000 acre. “The remaining 1,400 acre would also come soon as people and the state governmemt are very positive towards the investments coming to Odisha and towards the development of the state as a steel hub.

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