Planning Commission to prepare action plan for CTL industry:PM

New Delhi, Jan 5 (UNI) Investment Commission Chairman Ratan Tata and other members of the Commission met Prime Minister Manmohan Singh here today and made a presentation on the establishment of a Coal to Liquids (CTL) industry in the country.

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

The Deputy Chairman of Planning Commission and the Finance Minister were also present at the meeting.

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

The highlights of the Investment Commission presentation were: --India is expected to import over 90 per cent of its oil needs in the future.

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

four-five CTL projects can double domestic proven oil reserves.

--Proposed project will add 20 per cent 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 tonnes 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.

UNI