Coal ministry not to accord priority to coal-to-liquid project

The Coal ministry would not accord high priority to coal-to-liquid project as proposed by some private companies, Union Minister of State for Coal Santosh Bagrodia said.

KOLKATA: The Coal ministry would not accord high priority to coal-to-liquid project as proposed by some private companies, including Reliance Industries, Union Minister of State for Coal Santosh Bagrodia has said.

"The coal ministry has received some proposals, but we will not accord high priority to the coal-to-liquid project at this stage," he told a press conference last evening.

Coal Secretary H C Gupta, who was also present, said that Reliance, Tata, JSW and Essar have applied for blocks for the coal-to-liquid project.

Asked whether their applications were being considered favourably, he said that no decision has yet been taken.

Gupta said the coal liquification and coal gassification were clean and future technology.

To a question on ArcelorMittal's proposal for forming a joint venture with Coal India for reviving CIL's abandoned mines, the coal minister said that his ministry has received the proposal.
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"Now CIL is working on it, after which it will come to the coal ministry for consideration," he said.


Bagrodia, who held a high-level meeting at which Coal India Chairman Partha S Bhattacharyya and CMDs of CIL subsidiaries were present, said that this year Coal India has fixed a target of 6.5 per cent growth in production which could be surpassed with extra effort.

"The country will not have to import coal other than coking coal," he said.

Coal India which produced about 380 million tonne of coal last year has fixed a target of 405 million tonne in the current fiscal.

Bagrodia said that land acquisition posed the biggest problem in opening new mining projects and the government has come up with a new relief and rehabilitation policy for affected people.

"The policy has a humane face and incentives will be provided to the people who gave up their land for new projects. The incentives will vary from state to state," he said.
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Asked whether Coal India which faced the problem of land acquisition and forest clearance for new projects would be able to fulfil the target of producing 160 million tonne of additional coal in the Eleventh Plan, Bagrodia said that he held had discussions with the forest minister for necessary clearance.

"I hope we will be able to solve the problem," he said.
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