Prime Minister of India - Dr. Manmohan Singh

Planning Commission to prepare action plan for CTL industry

The Investment Commission has suggested that the Coal to Liquids (CTL) is feasible in India (converting coal to liquid fuel and gas) and should become an integral part of India's strategy for oil security.

The Commission Chairman Ratan Tata and other members of the Commission met the Prime Minister today and made a presentation on the establishment of a CTL industry in the country. The Deputy Chairman Planning Commission and the Finance Minister were present at the meeting.

The highlights of the Investment Commission presentation were as follows -

� India is expected to import over 90 % of its oil needs in the future.

� New domestic discoveries of oil and gas are not expected to substantially reduce oil imports.

� 4-5 CTL projects can double domestic proven oil reserves.

� Proposed project will add 20% to India's domestic proven oil reserves.

� Liquid fuel produced is predominantly diesel but also naptha and LPG.

� India's low grade coal is not a limitation and fuel output is ultra clean.

� Technology is proven in South Africa with significant economic impact.

� The project needs 1.3 billion tons of coal as captive mine to the project with open cast mining of pit-head coal. And will require CTL to be notified as end use for captive mining.

� A mechanism for centre - state partnership is necessary for such a project.

The Prime Minister has decided that an Inter-Ministerial Group to be set up within the Planning Commission will further examine the proposal and recommend a timebound action plan.