The largest Indian steel producer Tata Steel and South Africa's Sasol Synfuel are planning to set up a joint venture to build India's first project to convert coal into liquid with an annual production capacity of 3.6 million mt.
As reported by the Indian press, the joint venture, which is to be located in the eastern Indian state of Orissa, will cost Rupees 400-450 billion ($8.7-9.8 billion) and will be completed in eight years.
Tata Steel vice chairman B Muthuraman and Sasol Synfuel managing director Ernst Oberholster submitted their proposal at a meeting with Orissa chief minister Naveen Patnaik on Monday, January 18, the national press said.
The site for the plant, which will require 3,000 acres (12.14 km2) of land, has not been identified yet. However, coal, the primary raw material for the plant, will come from mines in the Talcher belt in Orissa. The project also envisages a beneficiation plant, a coal handling plant, and a 1,600 MW power plant.