Captive block for coal-to-oil project

KOLKATA: The Union Coal Ministry 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.

At present, only power, iron and steel, and the cement sector are allowed captive coal blocks. The move on CTL gains significance in view of the spiralling prices of crude.