Tatas revive titanium project in TN

The Tuticorin facility to cost the company Rs 2,500 crore.

Tata Steel, the country's leading steel-maker, today revived its integrated titanium dioxide project in Tuticorin, Tamil Nadu, at an investment of Rs 2,500 crore.

A fresh memorandum of understanding (MoU) was signed between Tata Steel Managing Director B Muthuraman and Tamil Nadu Industries Secretary Shakthikanda Das in the presence of Chief Minister M Karunanidhi and Tata Group Chairman Ratan Tata at the Secretariat here.

The original MoU was signed in 2002 during the previous AIADMK government, but the project did not take off in the last five years.

The project envisages mining and mineral separation, followed by value addition to synthetic rutile and titanium dioxide or pigment, a key ingredient for the paints industry. The project will be implemented over six years. The company will also establish a sea water desalination plant and a power plant for the project.

Tata Steel had signed an MoU with the Tamil Nadu government in 2002 to undertake a techno-economic feasibility study for setting up the titanium project using the mineral sands available in the southern districts (Tirunelveli and Tuticorin) "" of the state.

While the company completed the feasibility study with the help of a consortium of partners, land acquisition was a major cause for the delay in finalising the project, according to sources close to the development.

Talking to reporters, B Muthuraman said the land acquisition was an issue everywhere. "After signing the MoU in 2002 for the titanium project nothing much happened. The present state government has given us the confidence to implement the project well," he added.

"The state government has agreed to extend all help and assured us to procure lands for the project, which will require 10,000-12,000 acres," he added.

The project is expected to generate employment opportunities for 1,000 people directly and 3,000 people indirectly. The company plans this as a holistic project, which will include programmes for skill development for families near the mines, community development and reclamation of lands after mining for cultivation of commercial crops.

"The project will help in industrial and economic development of the region and give impetus to other infrastructure projects in the region," Shaktikanta Das, secretary, industries, Tamil Nadu, said.

According to Tata Steel website, the company was granted prospecting licence over 80 sq km by the state government in Tirunelveli and Tuticorin districts with due approval from the Central government.

The project is preparing for the production of 5 lakh tonnes of ilmenite (iron titanium oxide from which titanium dioxide is extracted ) a year initially, which will be increased to 10 lakh tonnes later.

Muthuraman said the manufacturing unit would have a capacity to produce up to 100,000 tonnes of titanium oxide a year. The project is likely to generate significant revenues for the company as the country currently imports 60,000-70,000 tonnes of titanium dioxide every year. The consumption is expected to go up.

The facility will start operations some time in the middle of 2008, according to the website.

Ratan Tata said that it was a very significant project for the Tatas in Tamil Nadu. "We have assured the state government that we will also invest in power and a few other sectors in Tamil Nadu," he added.