Centre seeks status report on jinxed titanium project

With the Rs 1200-crore titanium project in south Odisha, conceived as an Indo-Russian joint venture (JV), still under a cloud of uncertainty, the Centre has sought status report from the state government on the vexed project by November-end.

“The Centre has sought information on areas like status of land already acquired, people rehabilitated and progress made by the project. The project proponent has submitted some documents to us which is under scrutiny,” said an official source.

Earlier, state Chief Secretary B K Patnaik had asked Kolkata-based Saraf Agencies, one of the promoters, to submit all relevant documents pertaining to the project including sanction of Special Economic Zone (SEZ) status, allotment of land, memorandum of understanding (MoU) signed, agreements between JV partners, litigation and arbitration documents, necessary approvals obtained and correspondences made with the Government of India.

Chief secretary has held that in case of non encumbrance, Saraf Agencies may be allowed to start work on the project.

The titanium project proposed to be set up at Chhatrapur in south Odisha's Ganjam district has had a tortuous journey for over four years.

Initially conceived as an Indo-Russian joint venture, the project grounded to a halt after its Indian promoter - Saraf Agencies walked out of the project following intractable differences with the Russian partners. Of late, Saraf Agencies has revived its interest in the project as land was in its possession. The company has communicated its intent to the state government, stating that it was keen to implement the titanium plant on its own.

Saraf Agencies has also submitted its proposal to the Ganjam district administration and Land Losers’ Welfare Association, seeking their cooperation for implementing the project even as it is embroiled in a legal battle with its erstwhile partner.

The two partners had sparred over the controversial manner of land allotment by Odisha Industrial Infrastructure Development Corporation (Idco). Idco had allotted land for the titanium project to Saraf Agencies while the Russian promoters had opposed it, demanding land allocation in the name of Titanium Products Private Limited (TPPL), a special purpose vehicle formed for the project.

As per the original scheme of things, the Russian partners- State Property Management Agency and Tekhnokhim Holding were to hold 55 per cent stake in the JV. The balance 45 per cent was to be held by Saraf Agencies that had already claimed to have invested Rs 200 crore on the project.

It may be noted that non-utilization of land allotted for the titanium project had irked the land losers who had moved the Odisha High Court in December last year, seeking return of their land. Around 230 acres of land held by 1,200 people in four villages including Kanamana, Tikiria Berhampur, Chandrapada and Maipatna were acquired for the project.