Saturday, March 16, 2013

JSPL signs pact with German firm Lurgi for Rs. 55,000 crore
Angul: Jindal Steel and Power Ltd (JSPL) on Friday said it has signed a pact with Lurgi for roping it in as the technology partner for its Rs. 55,000 crore coal to liquid (CTL) project, but will not offer any equity to the German firm.

"We have entered into an MoU (Memorandum of Understanding) with Lurgi of Germany for CTL technology but without any investment participation from Lurgi in the project," JSPL deputy managing director and CEO (steel business) V R Sharma told PTI.

The Frankfurt-based Lurgi is an engineering firm with hi-tech expertise in the entire process chain of CTL projects. It also has a wholly-owned subsidiary in India - Lurgi India Company.

JSPL's subsidiary, Jindal Synfuels, would develop the project in Odisha's Angul district at a total cost of Rs. 55,000 crore, Mr Sharma said.

Mr Sharma said for other products such as methanol, JSPL is looking for technology partners from the US and Europe, other than Lurgi.

JSPL has already been allocated a coal mine for the project. The company expects to get the prospecting licence soon. The coal from the mine would be used as raw material for the project.

Mr Sharma said JSPL did not tie-up with South Africa's Sasol because the technology provided by the firm can't absorb high-ash coal which is in abundance in the country.

Courtesy: NDTV Profit