Strategic Energy Technology Systems

In March 2009 the Indian government announced that it had awarded the north Arkhapal coal block in Orissa to Strategic Energy Technology Systems Ltd, a 50:50 joint venture between the Tata Group and Sasol Synfuels International, the international synfuels subsidiary of the South African company Sasol. It is projected that the plant would produce 80,000 barrels of crude oil a day.

In early 2010 Orissa's Chief minister Naveen Patnaik told reporters that "though we have not identified the location, the proposed plant will be somewhere in the state." It was also reported that the coal would come from the Srirampur area in Talcher. The Business Standard also stated that the project "requires 3,000 acre of land for its main plant, additional land would be required for setting up coal mines, benefication plants, coal handling plants, water reservoirs, power plants and a township" and would involved the establishment of a 1600 megawatt power station. The newspaper also reported that the joint venture was "yet to make a formal application" for the plant the company was pressing the state government "to provide adequate facilities for early commissioning of the project."

In June 2010 the companies stated that the proposed project would cost $10 billion. The allocation of the coal rights for the project was first announced in March 2009.

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