Tuesday, September 15, 2009

Titanium Project To Feature In Russia-India Talks

A high-level Russian delegation, including government officials, is scheduled to arrive in Bhubaneswar on September 17 to hold talks with the state government on the proposed titanium project in Ganjam district.

The Rs 1150-crore project has run into controversy in the wake of differences between the Indian and Russian promoters of the company, Titanium Products Private Limited (TPPL), which had last year signed an MoU with the government to establish the unit. The Indo-Russian project had drawn much attention as it envisaged utilization of beach sand minerals to produce titanium sponge, a virgin metal highly in demand all over the world.

Sources said that an 11-member Russian team, including the country's deputy minister for industry I S Materov and top government official U M Medvedev, would be coming with a view to remove the obstacles in execution of the project. TPPLs Russian partners, namely, Government of Russia and JSC Technochim Holding, have taken strong exception to the controversial manner in which the state-owned Industrial Infrastructure Development Corporation of Orissa Limited (Idco) has allotted land for the FDI project.
Idco had executed a lease deed with Kolkata-based Saraf Agencies Private Limited (SAPL), the Indian stakeholder in TPPL, on February 2, 2009, for around 199 acres in Chhattrapur area of Ganjam. The Russians have objected to this on grounds that the land ought to have been given to TPPL instead of SAPL, which in turn has offered to sub-lease the land to TPPL.

Native site as the Russian government is keen on the project and has the wherewithal to go alone if necessary. The Saraf group, it may be noted, has also drawn up plans to establish a titanium plant on its own, sources said.

A senior state industries department official, on his part, said the government is open to all possibilities and, if required, provide land for two titanium projects.

Source: Times Of India

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