Millennium Post

Naveen Jindal-led JSPL scraps its $10 billion CTL project

‘The CTL project was linked with the coal block. If the coal block is gone, then the project is gone,’ JSPL Chairman Naveen Jindal said. JSPL was allotted Ramchandi Promotional Coal Block, with an estimated reserve of 1,500 million tonnes on 27 February, 2009 for the project.

The $10 billion project was supposed to produce 80,000 barrels per day of crude using German firm Lurgi's technology. The project cost also includes setting up of a 1,350 MW power plant and mine development expenses.The plan to do  away with the project comes after the apex court had in September cancelled 214 of the 218 coal blocks to various firms since 1993 terming it as ‘fatally flawed’. The cancellation also included Ramchandi mine allocated to JSPL. The government has decided to auction the de-allocated coal blocks. The first lot of blocks will go under the hammer start on 11 February and mines will be allotted only to the specified end-users.

JSPL, which was on the worst hits with the cancellation of coal blocks, had earlier said it would bid for the blocks. The company was allocated six blocks during the period.

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