India Opens Coal Blocks and Invites Applications for Coal-to-Liquid Projects

BANGALORE, INDIA--June 25, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--In an unprecedented move, the Union Coal Ministry of India is accepting applications for the development of coal-to-liquid (CTL) projects in the Palasbani coal block in the Talcher Valley. This decision comes less than a month after the ministry ruled out the possibility of allocating coal blocks to industry giants including the Adani Group (Ahmedabad, Gujarat), Jindal Steel & Power Limited (BOM:532286) (New Delhi), Reliance Industries Limited (BOM:500325) (Mumbai) and the Essar Group (Mumbai), which have been pursuing CTL opportunities in India in the face of surging oil prices. Reliance Industries is reportedly in talks with Coal India Limited to create a joint venture to set up an 80,000-barrel-per-day CTL project. It is also scouting for technology partners and has already approached Sasol and Headwaters Incorporated (NYSE: HW) (South Jordan, Utah).