Recently in one of my previous blog entry i was discussing about Coal Liquification and i have more information to add to the same. Oil India, an oil exploration company now wants to invest $1.5 billion in Assam on this technology, reliance industries, Reliance infrastructure, GMR will be investing $8 billion in Orissa, Tate group also seems interested in investing in this technology, so some percentage of INDIA's 99 Billion Tonnes of coal reserve will be used.
When i was searching for more information about the same i found an interesting facts 74% of explored coal goes to our electricity , the rest goes to Cement, steel and sponge iron industry. I was thinking about 99% of coal goes to Electricity.
Even though we boast about saying that we have a largest coal reserve, why are we the net importer of coal for the past 4 years, Australia, China, South Africa are Exporters. The reason potrayed(may be true) is Technological constraints leaves us incapable to extractable coal from few locations, can't we invest in this and explore more coal insead of buying coal reserves from abroad which may be even more expensive in terms of operations.
One of key person in this industry (anish tripathi, partner startergic service group)says as long as the Oil price is above $50 / barrel the economics for CTL is good.
Refernce: Business world
It would be interesting to discuss more about this topic. Friends welcome.
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