Angul, June 9: Jindal Steel and Power Limited (JSPL) will set up a coal-to-liquid (CTL) plant here with an investment of Rs 45,000 crore by adopting a “clean, green and worldclass” technology.

“The proposed plant, which is expected to commence production of diesel and naptha from coal by gasification process in 2016-17 will have a capacity of four-million-tonne per annum,” said JSPL executive director Rajesh Jha.

The company will adopt the best of technologies to minimise the pollution hazards. Especially the release of carbon di-oxide will be arrested, grounded or utilised for other products,” Jha said.

The two CTL projects have been approved by the Centre. While the JSPL plant will be set up at Angul, Tata plans to locate its plant in nearby Dhenkanal district.

“The production of petroleum products among other things from coal is need of the hour in view of shrinking deposit of fuel reserve in the world and continuing price hike,” said Jha, adding that the diesel produced by coal gasification will be cheaper and only viable option in future.

In another development, environmentalists and local villagers are up in arms over the possible pollution fall out of the CTL plants, so far not known in India.

Environmentalist Prasanna Behera said the technology, being adopted by the JSPL, is not a proven one and likely to create further pollution in the highly polluted areas. “There are also fears that the nearby Durgapur reserve forest may be a casualty as such forest cover in the district has dwindled due to massive industrialisation,” Behera said.

People of the affected villages of the proposed project site recently took out a rally here opposing the project as the leader Kedar Nath Pradhan said: “The project will further pollute the air and water in the area apart from destroying the forest cover.”

Allaying the pollution fear, chief of the CTL project Debananda Tripathy said: “The project is environment-friendly without posing any pollution hazards. The emission s will be extremely minimum and in no way affect the environment.”

Jha said the CTL plant would bring out rapid economic development in the area, apart from generating employment for around 30,000 persons. “While about 12,000 persons will get direct employment, indirect employment opportunity would be created for another 18,000 persons,” he said.