South African-based petrochemical giant Sasol and Indian diversified industrial giant the Tata Group's plans to establish India's first coal-to-liquid plant has hit a snag.
After last week's news that the Indian government was examining the possibility of allocating coal blocks to the Sasol-Tata project, India's Economic Times reported that the government appears to have put the US$8-billion project on the backburner for now.
Surging global oil prices have encouraged emerging economies with access to large coal resource to embrace CTL technology as a means of reducing their reliance on imports.
The Economic Times reported that differences have arisen among the inter-ministerial group set up to develop the roadmap that would allow the country to commercialise the CTL process.
Tata's collaboration with Sasol
According to the report, the main argument raised by those opposing the liquefaction projects, particularly Tata's collaboration with Sasol, is that India's coal resources should be reserved for use by the power sector rather than being offered for projects that put it to "unproductive usage without aiding the country's energy security", an official was quoted as saying.
Sasol-Tata plant hits snagArticle By: Sherilee Bridge
Mon, 21 Apr 2008 17:19
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