With the Rs 1200-crore titainium porject failing to make any headway at the ground level even after the pull out of the Kolkata-based Saraf Agencies, the Orissa government has stepped in to expedite the project.
The state government has asked the Russian promoters of the project to settle all outstanding dues of their erstwhile joint venture partner- Saraf Agencies and start work on the project as soon as possible.
“We have suggested the Russian promoters to clear all dues of Saraf Agencies and settle disputes through arbitration. The state government is committed to put the titanium project on the fats track and our intent has been conveyed to the Russian promoters”, a highly placed official source told Business Standard.
Saraf Agencies had invested around Rs 100 crore on the project.
The titanium dioxide plant was originally supposed to be developed as a joint venture between the Russian promoters and Saraf Agencies. Both parties had formed a special purpose vehicle called Titanium Projects Private Ltd (TPPL) for executing the project.
But work on the ambitious project had hit a roadblock due to sharp differences between the consortium partners over the controversial allotment of land by the state government owned Industrial Infrastructure Development Corporation of Orissa Ltd (Idco).Idco had allotted 250 acres of land at Chhatrapur, the project site in south Orissa's Ganjam district, which was stridently opposed by the Russian partners of the project. The Russian promoters wanted the land allotment in the name of the SPV- TPPL.Even after several rounds of negotiations, the two sparring partners failed to cut any ice, with the dispute finally culminating with the exit of Saraf Agencies from the project.
As per the original scheme of things, the Russian partners- State Property Management Agency had 51 per cent stake in the JV and Tekhnokhim Holding 4 per cent stake.
The balance 45 per cent stake was held by the Indian partner- Saraf Agencies.
