The State Government has prepared a draft MoU for the proposed `42,000-crore coal-to-liquid (CTl) project of Jindal Synfuels ltd (JSFl) without providing any assurance for raw material supply, according to official sources here on Thursday.
Although there is no provision of making any assured raw material supply in the draft MoU, sources said the Government has agreed to extend all requisite help to JSFl in getting clearance for development of the Ramachandi coal block allotted to it by the Centre.
JSFl is a subsidiary of Jindal Steel & Power ltd (JSPl). Earlier, JSFl had proposed to launch a CTl project with a capacity of producing 80,000 barrels of oil per day from coal at its proposed Durgapur plant in Angul district. The company also proposed to set up a 1,100-MW captive power plant based on coal washery rejects and a 50-MTPA coal washery.
The draft MoU allows JSFl to draw water from river Mahanadi and the company would submit a detailed water management and utilisation plan for due clearance from the State’s Water Resources Development Department.
The MoU would be signed for nine years with a provision that the project would be reviewed every three years. The company has to submit milestone reports in the third and the sixth years.
JSFl requires 5,000 acres of land for the CTl project at Durgapur in along with other auxiliary utilities.