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| TPPL partners close to resolve land issue |
| BS Reporter / Kolkata/ Bhubaneswar Oct 07, 2009, 00:52 IST |
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Things finally seem to be looking up for Titanium Projects Private Limited (TPPL), the consortium setting up the maiden titanium project in Orissa at Chhatrapur, entailing an investment of Rs 2,000 crore.
Kolkata-based Saraf Agencies Limited and the Russian promoters of TPPL have reached a certain level of understanding on the vexed issues of shareholding and allotment of land for the project.
“Both the parties- Saraf Agencies and the Russian promoters of TPPL have made some headway in their talks These companies have reached a certain level of understanding on the contentious issues of shareholding and land allotment”, Saurabh Garg, the state industries secretary told Business Standard.
The Orissa Industrial Infrastructure Development Corporation (Idco) is monitoring the progress of negotiations between the two parties even though we are not involved in their talks, he added.
A fresh round of negotiations was held today between Saraf Agencies and the Russian promoters of TPPL to resolve the differences that had cropped up between the joint venture partners.
A tripartite meeting on Monday involving the state government, Saraf Agencies and the Russian promoters of TPPL turned out to be inconclusive. Thereafter, the two sparring parties sat together on the same day in a bipartite meet to iron out their differences.
It may be noted that the proposed titanium project had run into rough weather after the Russian promoters had threatened to pull out of the project due to commercial disputes with Saraf Agencies.
At the heart of the dispute was the controversial manner of allotment of land for the project by Idco.
Saraf Agencies had entered into a land lease agreement with Idco for around 200 acres of land near Chhatrapur in February this year. The Kolkata-based realty player intended to sub-lease the land to TPPL which had drawn flak from the Russian promoters.
While Saraf Agencies held 45 per cent stake in the project, the Russian government held 51 per cent with the remaining four per cent belonging to JSC Technochim Holding, a Russian firm.
TPPL has proposed to invest around Rs 2,000 crore in two phases. While Rs 1,150 crore will be invested in the first phase, another Rs 850 crore will be invested in the second phase. The first phase of the project was scheduled to be completed by October 2010.
In the second phase, the company needed about 350 acres of land to develop the Special Economic Zone (SEZ).
The proposed titanium plant will produce 1,08,000 tonnes of titanium slag, 68,000 tonnes of high purity pig iron, 40,000 tonnes of di-oxide pigment and 10,000 tonnes of titanium sponge per annum.
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