With the Rs 1,200-crore titanium project in south Odisha still under a cloud of uncertainty, the state government has asked Kolkata-based Saraf Agencies, the project proponent, to submit detailed status report on the jinxed venture.
Chief secretary B K Patnaik has asked the company to submit all relevant documents pertaining to the project including sanction of Special Economic Zone (SEZ) status, allotment of land, memorandum of understanding (MoU) signed, agreements between partners, litigation and arbitration documents, necessary approvals obtained and correspondences made with the Government of India.
These documents will be vetted by the state government’s investment promotion agency - Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol), which in turn will submit its views to the state industries department.
Also, Industrial Infrastructure Development Corporation of Odisha (Idco) has been asked to examine all documents related to land acquisition proceedings, lease deed executed, signed MoU and other relevant documents to verify if there is encumbrance over the land allotted for the project. Idco will also submit a detailed land status report, along with its views to the industries department.
Chief secretary has held that in case of non encumbrance, Saraf Agencies may be allowed to start work on the project.
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.
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The two partners sparred over the controversial manner of allotment of land. Idco had allotted land 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 and Tekhnokhim Holding were to hold 51 per cent and 4 per cent stake in the JV with the balance 45 per cent going to the Saraf Agencies, which claimed to have invested Rs 200 crore on the project.
Even as the erstwhile partners are embroiled in a legal tussle, Saraf Agencies has renewed its interest in the project, deciding to implement the titanium plant on its own.
Non-utilisation of land allotted to the project had irked the land losers who had moved the Odisha High Court in December last year, seeking return of their land. Around 230 acres of land held by 1,200 people in four villages including Kanamana, Tikiria Berhampur, Chandrapada and Maipatna were acquired for the project.