Saraf Agencies to invest Rs 5,000 cr on titanium park SEZ at Chatrapur in Ganjam

Even as the row between Kolkata-based Saraf Agencies and Russian promoters over the jinxed titanium project is yet to settle, the Indian promoter has reaffirmed its commitment on the project. Saraf Agencies has unveiled Rs 5,000-cr investment plan that will also include a titanium park besides the titanium dioxide plant, a project proposed at Chhatrapur in south Odisha's Ganjam district that has hitherto remained a non-starter.

"Presently, we have got 260 acres of land at the project site. We have sought additional 250 acres of land for developing a titanium park. Our total investment on the titanium dioxide plant and titanium park will be Rs 5,000 crore,” SM Shroff, chairman, Saraf Agencies told the media after meeting chief secretary BK Patnaik. On the titanium dioxide plant, he said, “We are going to perform the ground breaking ceremony on January 17. Production of titanium slag is expected to commence by April 2014 while titanium dioxide production is set to start within 20 months of the ground breaking ceremony.” Shroff said his company would set up the titanium plant on its own without any joint venture partner.

Saraf Agencies will build the titanium plant with the help of Chinese technology. The company claimed to have placed advances of Rs 15 crore to Chinese equipment suppliers. When asked about the ongoing dispute with the Russian promoters, he said, “In compliance with the order given by the department of industrial policy and promotion, the land for the titanium project was transferred to the joint venture (JV) company. But the Russian promoters announced that they are not keen on implementing the project. The matter is now under arbitration.” Chief secretary BK Patnaik said, “Saraf Agencies is interested to set up the titanium project on the acquired land. We have to examine whether it is permissible or not.”

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 proponents. Of late, Saraf Agencies had revived its interest in the project as land was in its possession. The company had 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 the company is embroiled in a legal battle with its erstwhile partner. The two partners had sparred over the controversial manner of allotment of land by Odisha Industrial Infrastructure Development Corporation (Idco). Idco had allotted land for the titanium project to Saraf Agencies at Chhatrapur but 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 on January 29, 2008. As per the original scheme of things, the Russian partners- State Property Management Agency had 51% stake in the JV and Tekhnokhim Holding 4% stake.

Source: Business Standard