The Indian government’s Investment Commission has concluded that Coal-to-Liquids (CTL) is feasible in India and recommended to the Prime Minister, Dr. Manmohan Singh, that it should become an integral part of India’s strategy for oil security.
The Prime Minister has decided to set up an Inter-Ministerial Group within the Planning Commission to further examine the proposal and recommend a timebound action plan.
In its presentation, the Investment Commission noted that India will need to import more than 90% of its oil in the future, and that new domestic discoveries of oil and gas are not expected to alter that figure substantially.
The Investment Commission concluded that four to five major CTL projects could have the effect of essentially doubling domestic proven oil reserves. Although synthetic diesel fuel would be the primary output, the projects would also produce naptha and LPG.
The Commission also concluded that India’s low-grade coal is not a limitation. The Commission also stated that partnership with the government was necessary.
The Government of India established the Investment Commission in December 2004 to enhance and facilitate investment in India. The Commission makes recommendations to the Government of India on policies and procedures to facilitate investment, recommends projects and investment proposals that should be fast tracked/mentored and promotes India as an investment destination.