Coal News We love to talk!

MAR 21 2017

In diversification bid, Coal India plans to produce petroleum oil in Jharkhand

  • Economic Times, ET Bureau / Hyderabad
  • Created: Tue 21st MAR 2017

Coal India is considering producing petroleum oil at its Chatra coal mine in Jharkhand. Petroleum oil from coal is part of the state-run coal behemoth’s diversification plan and it will soon invite an expression of interest for it, Coal India chairman Sutirtha Bhattacharya told reporters on Saturday. The Chatra mine comes under its subsidiary Central Coalfields.

Oil from coal can be used in automobiles. With crude prices on the rise, it will be a viable option for the company. Having been able to meet most of country’s coal demand, the miner now plans to diversify into related fields to keep its bottom-line healthy.

The company recently invited quotes from technology licensors for converting coal to chemical for a commercial project at Dankuni in West Bengal. The Dankuni project is for a coal-based methanol plant which uses high-quality coal from Eastern Coalfields, another subsidiary of Coal India. Details of the project can only be known after we know what kind of technology is brought to the table by experts, said Bhattacharya.

A few years ago, Coal India had initiated talks with South Africa’s Sasol, a leader in coal-to-liquid (CTL) technology. The project envisaged a minimum investment of Rs10,000 crore and it would entail producing hydrocarbons from coal with modern refineries. The proposal was not pursued and the plan was shelved, Coal India executives said.

Bhattacharya said Coal India has been undertaking initiatives to address quality issues reported by some consumers. This includes adoption of modern mining methods, additional third-party sampling and washing of coal.

The miner has also engaged a consultant to tackle taxation issues arising out of difference between assured coal quality and final delivery.



Jharkhand West Bengal Coal Oil Petroleum Hydrocarbons India

Related News

  • Petroleum consumption to grow by 6 per cent in India: Moody's  Read more
  • Auction for rooftop solar projects deferred again  Read more
  • Over 30 hydel power projects left in limbo  Read more
  • ONGC swamped with offers for hiring deep sea rigs, expects charter rates to come down  Read more
  • Coal India unions call for a days strike to protest against disinvestment  Read more
  • Over 40 per cent LPG coverage in Odisha in 2017: Officials  Read more
  • Govt fixes Oil India floor price at Rs 510  Read more
  • ONGC aims to start production from east coast in 2018  Read more
  • ONGC drilling of HTHP fields will take time  Read more
  • Tamil Nadu farmers hail oil ministry's decision to cancel CBM project  Read more