Bhubaneswar, Feb 20 (IANS): Jindal Steel and Power Ltd. (JSPL) chairman Naveen Jindal Friday said the coal gasification steel plant in Odisha's Angul district would be expanded to six million tonnes per annum (mtpa) capacity by the end of 2016.

"The coal-to-gas project, the first such project in the country, would be expanded from its present two mtpa to six mtpa by the end of next year," said Jindal while participating at the event 'Advantage Odisha 2015' here.

He said there is the issue of inadequate raw materials in the state that makes it difficult for industries to run their plants.

"We, however, are confident of getting raw materials. We will import the raw materials not available here," said Jindal.

Admitting that there are challenges in setting up industries, he added that the company has received cooperation from the state government.

He also hoped that the policies of the Centre and state government would encourage investors in future.

Stating that he is satisfied with the ongoing coal auction, Jindal said: "Where we have not been satisfied, we have approached court."

The Delhi High Court Feb 11 stopped the auction of two coal blocks (Utkal B1, B2) owned by the company in Odisha.

It ordered a review of the government decision to change the end use of the two blocks from steel to power, before putting it out for auction.