<div>Strategic Energy Technology Systems Private Limited (SETSPL), a joint venture between a consortium of Tata companies and Sasol of South Africa, clarifies that it was allocated a coal block for its coal-to-­liquids (CTL) project in a structured process based on predetermined criteria. The joint venture was not meted out any extraordinary treatment, as has been reported in sections of the media in the recent past.<br /><br />With India importing 80 per cent of its crude oil, posing increasing threat to energy security and ever increasing outflow of foreign exchange, the Coal Mines (Nationalisation) Act, 1973, was amended in July 2007 to include CTL industry as an end-user for allocation of captive coal blocks so that low-rank high-ash coal, abundantly found in India, can be converted to environmentally friendly liquid fuels. With CTL projects being highly capital-intensive, they are viable only with captive coal blocks allocated on nomination basis.<br /><br />An Inter-Ministerial Group (IMG) was constituted by the government of India to examine the proposals. The IMG consisted of the secretaries to various ministries and members of the Planning Commission. The applicants were invited to make presentations as per the prescribed guidelines before the IMG in September/October 2008.<br /><br />SETSPL was among the 22 applicants which made presentations.<br /><br />Sasol, the joint venture partner in SETSPL, has more than 50 years’ commercial experience in CTL and a well-proven technology.<br /><br />SETSPL was allocated North of Arkhapal and Srirampur coal block in the Talcher region of Odisha in February 2009.<br /><br />Though the block was allocated in February 2009, the Prospecting Licence (PL) order was issued by the government of Odisha only on 15 March, 2012. The execution of the PL deed is still pending, without which exploration cannot proceed.<br /><br />Actual exploration is required to determine if the block has appropriate quantity and quality of coal reserves for the CTL project. In the event that the block has insufficient reserves of the appropriate quality for CTL, then the block will be returned to the government.</div>
