India offers blocks for coal to liquid projects

The Union Coal Ministry in India has invited applications for setting up coal-to-oil (CTL) projects offering for the first time a coal block for the purpose. CTL projects, seen as an alternative energy source, require huge reserves of coal and the block that has been offered will be in an area, which is not with the public sector Coal India Ltd. (CIL). An inter-ministerial group (IMG) has been set up to examine the proposals that would be received for CTL projects. Sources said that this was also the first time that the end-use for captive coal blocks were being expanded and would substantially cover surface coal gasification and underground coal gasification projects. The CTL process enables production of oil and oil products including diesel fuel from coal. About 1-1.5 billion tons of coal reserves of E and F grade is proposed to be made available. Several Indian corporate majors have already shown interest in setting up such units for which technology would have to be sourced from abroad. (June 20, 2008)