The Kolkata-based Saraf Agencies Private Limited (SAPL) has decided to pay an extra Rs 40,000 per acre to the land losers of its titanium dioxide plant near Chhatrapur in Odisha's Ganjam district.
The additional payment is meant to compensate the land losers, who had alleged loss of earning opportunities due to delay in start of construction work of the project.
The company hoped the gesture, which would cost it extra Rs 80 lakh, would expedite the construction work which was stalled due to protest by the land losers.
SAPL had acquired around 230 acres of land, including 199 acres private lands for the project five years ago. Nearly 300 people of 4 villages - Tikiria Berhampur, Kanamana, Chandrapada and Mayipatna had lost their land for the project.
The land value, as fixed by the government at that time, ranged between Rs 2.25 lakh and Rs 10 lakh per acre.
"If all things go smooth the construct work will be started on June 21," said senior general manager of the company SL Modi. The company officials have submitted a copy of the agreement entered with the land losers on payment of extra amount to the district administration on Monday.
"We have agreed to the company's proposal. We want the company to expedite the work," said Bipra Acharya, adviser, Titanium plant land losers' association.
The titanium dioxide project has been hanging fire for past several years due to bickering between SAPL and its joint venture partners - two government owned firms from Russia. The differences had cropped up mainly on the transfer of the acquired land in the name of the joint venture company. Later, the Russian partners had walked out of the project and SAPL had decided to implement the project on its own.
In the first phase, the project would produce 10,000 tonnes of high titanium slag and 6,000 tonnes of high purity pig iron per annum. Around Rs 100-crore will be invested in the first phase which is scheduled to go on stream in May 2014.
