(a) whether the Government has any proposal to extract oil from coal;
(b) If so, the details thereof including the techniques experimented for the purpose;
(c) whether the private companies have also shown their interest to set up
projects in collaboration with foreign companies to produce oil from coal;
(d) if so, the details thereof; and
(e) the time by which the oil extracted from coal is likely to be available
in the country?
MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF COAL AND MINISTER OF STATE
(INDEPENDENT CHARGE)IN THE MINISTRY OF STATISTICS & PROGRAMME IMPLEMENTATION
(SHRI SRIPRAKASH JAISWAL)
(a) to (e): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) IN RESPECT OF LOK SABHA STARRED QUESTION
NO. 394 FOR REPLY ON 16.12.2009 ASKED BY SHRI PRATAPRAO GANAPAT RAO JADHAO AND SHRI
S. PAKKIRAPPA
(a) to (e) : Yes,Sir.A policy decision has been taken to promote coal liquefaction in
the country from the energy security point of view. A gazette notification has been issued
notifying coal liquefaction as one of the specified end uses for the purpose of allotment of
captive coal/lignite blocks to the entrepreneurs. Both direct and indirect methods of
converting coal into oil have been tested commercially in different countries. Coal
liquefaction through indirect method has been in vogue for commercial production of oil
by M/s Sasol in South Africa for quite some time. An experimental project using direct
conversion technology with the coals of North-Eastern Coalfields has been successfully
tested earlier by Oil India Limited. Based on the recommendations of an Inter-Ministerial
Group, Ministry of Coal has allotted two coal blocks in Talcher coalfields, one each to
M/s Strategic Energy Technology Systems Ltd. (SETL) and M/s Jindal Steel & Power
Ltd. (JSPL). The names of the coal blocks allotted are North of Arkhapal-Srirampur
Block to M/s SETL and Ramchandi to M/s JSPL. The proposed production capacity of
each project is about 80,000 barrels of oil per day. The proposed oil production is
expected to commence seven years hence.