Even after the pull out of the Kolkata-based Saraf Agencies from the Rs 1200-crore titanium project proposed to be set up at Chhatrapur in south Orissa's Ganjam district, the company's dispute with its erstwhile Russian joint venture (JV) partners is yet to be resolved.
The row between the two JV partners for the ambitious project has only intensified with the Russian promoters insisting on international arbitration for solving the dispute.
"We have got the information that the Russian promoters are insisting on international arbitration for resolving the dispute with their former JV partner- Saraf Agencies who have already pulled out of the project. It remains to be seen whether the proposal is acceptable to Saraf Agencies. In any case, the dispute has to be mutually resolved between the Russian promoters and Saraf Agencies”, a highly placed official source told Business Standard.
With the titanium project failing to make any headway at the ground level even after the pull out of Saraf Agencies, the Orissa government had asked the Russian promoters to settle all outstanding dues of their erstwhile joint venture partner- Saraf Agencies and start work on the project as soon as possible.
Saraf Agencies had invested around Rs 100 crore on the project.
As per the original plan, the Russian partners- State Property Management Agency and Tekhnokhim Holding had 51 per cent and 4 per cent stake in the JV respectively.
The balance 45 per cent was held by Saraf Agencies.
They had formed a special purpose vehicle called Titanium Projects Private Ltd (TPPL) for executing the project.
But work on the project had hit a roadblock due to sharp differences between the consortium partners over the controversial allotment of land by the state government owned Industrial Infrastructure Development Corporation of Orissa Ltd (Idco).
Idco had allotted 250 acres at Chhatrapur in the name of Saraf Agencies which was stridently opposed by the Russian partners who wanted the land allotment in the name of the SPV- TPPL.
After several rounds of negotiations, the two sparring partners failed to cut any ice and Saraf Agencies finally walked out of the project.
