OIL studying coal liquification process for liquid fuel prod

New Delhi, Aug 2 (UNI) The Government today informed the Lok Sabha that the Assam-based public sector Oil India Limited (OIL) is currently studying coal liquification process for production of liquid fuel from the coal resources of the North East Region.

Minister of State for Coal Dasari Narayana Rao said in a written reply that a Joint Task Force (JTF) with members from Coal India Limited (CIL) and OIL has been formed for ascertaining the feasibility of adequate availability of coal from North Eastern Region (NER) and sorting out related issues.

He said technical aspects for conversion of coal to oil have been established in other countries and the same may be possible in our country also. The economic viability is yet to be proven with various types of Indian coal.

Production of Coal Bed Methane (CBM) has not been started by CIL for business purpose.

A demonstration project funded by Government of India in association with United Nations Development Programme (UNDP) and others is currently underway in Jharia coalfield for establishment of CBM production and commercial utilisation technology. In addition to this project, two Petroleum Exploration Licenses (PEL) have been obtained by CIL as consortium partner of Oil and Natural Gas Corporation (ONGC) for development of CBM in two blocks in Jharia and Raniganj coalfields. Exploration and pilot apprisal through slim hole drilling for assessment of feasibility of commercial development of CBM in these two blocks are under progress, Mr Rao added.

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