Tata Steel ink with TN Govt; 2,500 cr titanium proj

Chennai, June 28: Tata Steel today signed a memorandum with the Tamil Nadu Government for setting up of a titanium di-oxide project involving an investment of Rs 2,500 crore in the southern Tirunelveli District.

The MoU was signed by Mr B Muthuraman, CMD, Tata Steel and Industries Secretary Shaktikanta Das in the presence of Chief Minister M Karunanidhi and Tata Sons Chairman Ratan Tata at the State Secretariat.

The MOU envisaged production of titanium di-oxide through synthetic rutile.

The project would have a production capacity of one lakh tonne of titanium di-oxide and provide direct employment to 1,000 people and indirect employment to 3,000.

Apart from this, it would also provide employment to 10,000 people engaged in agricultural sciences and technology.

An official release said, Tata Steel would give priority in employment to those who had given lands for the project.

The company would also set up a desaliantion plant and co-generation power as part of the project.

He assured the government that the company would scout for projects in power and other sectors in the state.

''This (the titanium di-oxide project) is the first step we have taken,'' he said.

The MoU for the project was signed during the previous AIADMK regime in 2002, But the techno-economic feasibility study was completed only now, he added.

Mr Muthuraman, who was also present, said titanium di-oxide, to be manufactured in the plant, formed the base for pigments in paints.

The production capacity for titanium di-oxide in India was inadequate and there was only one project in Thiruvananthapuram.

India is importing about 60,000 to 70,000 tonne of tianium di-oxide for paint industry.

The proposed project was to meet India's need for pigments and it would also help develop the southern districts. The MoU provided for implementation of the project in six years.

Mr Muthuraman said ilminite sand, which was available in abundace in the coastline of Tirunelveli, Tuticorin and Kanniyakumari, would be the raw material for making titanium di-oxide.

The company would require about 10,000 to 12,000 acre of land for the project.

The governemnt would acquire the land and give it to the company as per the MoU.

However, there was no need for deep sand mining as ilminite sand was available on the surface itself.

''If 100 tonne of sand is mined, 90 per cent of it will be replaced,'' he added.

UNI