While uncertainty looms large over the Rs 1,150-crore titanium project, an Indo-Russian joint venture, after the Russian partners threatened to quit the project, the Government is making all-out efforts to bring the warring factions to a negotiating table.
The proposed titanium project came under cloud when the Russian partners - the Russian Federation and the JSC Technochem Holding - objecting to certain decisions of the Indian partners wanted to pull out of the project.
Sharaf Agencies Private Limited (SAPL) and Titanium Mineral Products Limited (TMPL), the two Indian promoters, floated a joint venture company called Titanium Products Private Limited (TPPL) in association with the Russian promoters for establishment of a titanium project at Chattrapur in Ganjam district. The promoters of TPPL signed a memorandum of understanding with the State Government on October 15, 2008.
The Russian promoters, having 55 per cent stake in the project, complained to the Government that their Indian partners had taken certain decisions in their favour at the cost of the joint venture. Besides being minor partner in the company, the Indian promoters have not consulted the major partners on certain issues having financial implications.
As per the MoU, land to be provided by the Government for the project should be leased out to TPPL while the lease deed had been executed in favour of TMPL, the Russian promoters said. Incidentally, chairman of SAPLSM Shroff is the father of TMPL director Rahul Shroff.
The Russian promoters have also taken objection to certain investments by their Indian partners in the area of research on sea beach deposits, preparation of feasibility report on the setting up of synthetic rutile plant saying such investments are not part of the project cost.
After hearing the Russian partners on September 17, Minister of Industries Raghunath Mohanty today discussed the matter with SAPL chairman SM Shroff.
On the land dispute, Shroff told the Minister that once the project comes under the special economic zone (SEZ), there is no need to worry about the status of the land provided by the Government for the project. He also claimed that the investment so far made on the project is as per the agreement.
The Minister said that both the Russian and Indian promoters have agreed to come to a common negotiating table here on October 5.
The titanium project will have the capacity to produce 1.08 lakh tonnes of titanium slag per day, pig iron of 68,000 tonnes per day (tpa), 40,00 tpa of titanium dioxide pigment and 10,000 tpa of titanium sponge.
Source: Express Buzz
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