Mumbai: The Orissa government is actively studying the Tata Steel and Sasol Synfuel International’s joint venture proposal to set-up the country’s first project to convert coal into liquid at an investment of Rs 45,000 crore in the state and would take a call on it any time.
“They (Tata Steel and Sasol Synfuel International) have given a presentation to the Chief Minister Naveen Patnaik to set up the country’s first such project at an investment of Rs 45,000-crore to convert coal into liquid. We are currently studying the proposal....,” Orissa’s steel and mines minister Raghunath Mohanty, told PTI over phone.
Tata Steel in a tie-up with South Africa’s Sasol Synfuel International had proposed to set-up the project to convert coal into liquid in the state last year.
When asked about the time-frame for the project, Mohanty said, “I cannot give you the time-line...but it may get materialised any time.”
“Once we take a decision, both companies will be able to ink a memorandum of understanding (MoU) with us,” he said.
According to Tata Steel, the project is to be developed by Tata and Sasol in an equal joint venture by 2018 and would produce 80,000 barrels of liquid fuel per day.
“We have given the proposal to the state government and are awaiting the final decision from them,” a Tata Steel spokesperson said.
When asked about the location, he said, “we have not decided the exact location, but need at least 3,500-acres of land for this project.”
The country’s largest private sector steelmaker by output is also setting up a 6 MTPA integrated steel plant at the Kalinganagar Industrial Complex in state’s Jajpur district.
The plant is expected to start production by end-March 2013. Its initial capacity will be 3-million tonnes, which would eventually be doubled. Besides, Tata Steel is also setting up a port—Dhamra Port—in the state in a joint venture with Larsen & Toubro (L&T).