Saraf Agencies revises production timeline for Rs 2,000-cr titanium plant

Production to begin by Dec 2014

Saraf Agencies Private Ltd (SAPL) has set a fresh target for commencement of production at its titanium dioxide plant proposed near Chhatrapur in south Odisha’s Ganjam district by December this year. The plant is presently under construction.

The Kolkata-based company had earlier targeted to start production from the plant by May 2014. The first phase of construction on the Rs 2,000-crore project was delayed due to the devastating cyclone Phailin that struck the state’s southern coast in October last year, sources said.  

“The construction of the plant is in full swing, while the machinery for the first phase of the plant has already arrived. The first phase of the plant is expected to start production by the end of this year,” said the company’s vice president (commercial) S L Modi. In the first phase, the company has aimed at producing around 18,000 tonne high titanium slag per annum. In this phase, it would invest around Rs 250 crore. The company has committed a total investment of Rs 2,000 crore in the next three to four years to complete the plant to produce titanium dioxide and high purity pig iron and to develop the Special Economic Zone (SEZ). The area selected for the titanium dioxide plant has been notified as SEZ.

“We have obtained almost all clearances from the government and also acquired land from the government and private parties for the plant,” he said. The company has also assured the land losers to provide job to at least one person of each family in the upcoming plant.  A meeting in this regard was held recently  between the district administration, land-losers and the company officials at Chhatrapur, the district headquarter town.

SAPL had acquired around 230 acres of land, including 199 acres from the private owners for the project, about five years ago. Around 300 people of four villages — Tikiria, Berhampur, Kanamana, Chandrapada and Mayipatna lost their lands for the project.

The company had provided compensation to the land losers as per the government rate at that time. The valuation of land ranged from Rs 2.25 lakh to Rs 10 lakh per acre, sources said.

Earlier, SAPL had decided to establish the plant with two state owned Russian firms and a private Russian company. They had formed a joint venture named Titanium Products Private Limited (TPPL) to implement project on January 29, 2008.

The project, however hit a roadblock due to intractable differences between the joint venture partners mainly on the controversial manner of transfer of the acquired land. Odisha Industrial Infrastructure Development Corporation (Idco) had alloted land in the name of Saraf Agencies which was resented by the Russian firms which insisted on land allotment in the name of TPPL.

Later, Saraf Agencies had volunteered to develop the project on its own. The company proceeded on ground breaking ceremony and initiated construction activity after getting the go-ahead of the state government.