Jindal Steel shares plunge on scrapping of CTL project.

Shares of Jindal Steel and Power recently fell 4.5 per cent after it scrapped plans to set up a $10-billion coal-to-liquid (CTL) project at Angul in Odisha.

JSPL's scrip tumbled 4.49 per cent to Rs. 142.35 on the BSE. On the NSE, the stock was down 4.42 per cent at Rs. 142.40.

Jindal Steel and Power recently said that it has scrapped plans to set up a $10-billion coal-to-liquid (CTL) project at Angul in Odisha following the recent cancellation of Ramchandi mine by the Supreme Court.

'The CTL project was linked with the coal block. If the coal block is gone, then the project is gone,' JSPL Chairman Naveen Jindal had told PTI.

JSPL was allotted Ramchandi Promotional Coal Block, with an estimated reserve of 1,500 million tonnes on February 27, 2009 for the project.

The $10-billion project was supposed to produce 80,000 barrels per day of crude using German firm Lurgi's technology.

The project cost was also to include setting up of a 1,350 MW power plant and mine development expenses.

HBL