Question : CONVERSION OF COAL INTO OIL

(a) whether the Government is aware that coal can be converted into oil commercially using Fischer Tropsch process used by SASOL of South Africa as reported in the Economic Times dated July 25, 2005;

(b) if so, the facts of the matter reported therein;

(c) the likely price of oil so produced;

(d) whether the sufficient quantity and quality of coal is available in the country for this purpose;

(e) if so, the details thereof;

(f) whether the said conversion process also yields by products; and

(g) if so, the details thereof?

MINISTER OF THE STATE IN THE MINISTRY OF COAL (DR.DASARI NARAYANA RAO)

(a)&(b): As appeared in the Economic Times dated 25th July 2005, SASOL is known to be producing synthetic fuel oil and other chemicals from low-grade coal by gasification and through Fischer Tropsch synthesis process.

(c): As regards price of oil produced from the above process, information is not available with Coal India Limited / Central Mine Planning & Design Institute Limited (CMPDIL).

(d)& (e): As reported by Coal India Ltd., type of coal for this purpose is available in India but suitable beneficiation of high ash raw coal may be required for obtaining requisite quality of feed coal for this purpose.

(f)&(g): SASOL is known to be producing various byproducts such as Ammonia, Ammonium Nitrate, Ammonium sulphate, Cresols, Phenol, Methanol, Ketones, Paraffins etc.