B Muthuraman, managing director, Tata Steel today said the company's Rs 2,500-crore integrated titanium dioxide project coming up in Tamil Nadu's Tuticorin district is on track, and hinted that it would pay only a "reasonable price" to acquire the land.Addressing a press conference, he said that the project was definitely moving ahead and the company was keen on establishing the project with popular support. While three-quarters of the people supported the project, the company was ready to clear any misgivings in the minds of others, he added."Except for the land, we are ready in all respects . The moment the land is ready, we can start the project," he added.He, however, also hinted that the company had alternative plans considering the opposition to situating the project in the backward Tuticorin district. "Tata Steel is a Rs 100,000-crore company after the acquisition of Corus and this is a Rs 2,500-crore project. So, please understand that such a company will have alternative plans. It is for the people of Tamil Nadu to decide whether they want the project here or not," Muthuraman said.He pointed out that the company was willing to pay a reasonable price for the land, with the state government reportedly fixing a price in the range of Rs 40,000-Rs 50,000 per acre, far higher than prevailing market prices. The company has earmarked Rs 50 crore for the land out of the total project cost, also indicating that offering unreasonable prices would result in the project becoming unviable. Saying that the group was not averse to buying the land directly, Muthuraman stressed the need to buy large swathes of land through the government. "Large tracts of the land can be acquired only by the government, owing to several factors like ownership issues, land titles being common for four-five people, and fluctation in land prices, among others. We expect the government to carry out the purchase, and believe that it will do a good job," he added. About 10,000 acres of land are expected to be acquired in six villages for the titanium project. While about 8,900 acres are expected to be used for the main operations, the remainder will be employed in ancillary activity. These 8,900 acres are owned by 7,500 people and most of them have migrated to other places in search of employment, Muthuraman said.Referring to the financial viability of the project, Muthuraman pointed out that IRR (internal rate of return) on the project was 12-13%, making it a low-yielding project.The project is envisaged to create jobs for 4,000 people, 1,000 jobs directly and 3,000 indirectly. "We would like to hire people from the nearby villages for the 1,000 direct jobs. We will also set up a training school to train them at our cost and make them ready before the project takes off in three years," Muthuraman added.He stressed that this would be the first titanium project in the world to feature a desalination plant, being put up owing to paucity of water in the area. As the plant expands, the company wouldalso look at supplying water to nearby areas, he added.
