India-based Jindal Steel and Power (JSPL) has inked a memorandum of understanding (MoU) to secure a mining license for its Ramchandani coal mine in the state of Odisha.

The MoU was signed with the Indian government with the company nothing that a license for the coal mine was imperative for the development of the upcoming Coal-To-Liquid (CTL) plant in Angul district.

JSPL manging director and CEO Ravi Uppal told Moneycontrol.com, "We are now waiting for the prospective license to be given and once the prospective licence is given to us, we’ll take the next steps… but this will take off only when we are fairly sure of the fuel supply which is basically coal."

The proposed CTL plant will be developed at a cost of INR550bn ($10.15bn) and will be able to produce methanol, petrol and diesel from coal.

JSPL, meanwhile, is also seeking a venture partner for the plant and has short-listed three companies; an
American or European firm is likely to emerge as the eventual partner for the company.

The CTL plant is expected to be launched in 2019 and will have a capacity of 80,000 barrels per day.