BERHAMPUR: Uncertainty looms large over the setting up of the Rs 1,150-crore titanium project that has run into controversy in the wake of differences between the Indian and Russian promoters of the company.The proposed project at Chhatrapur in Ganjam district came under a cloud when the Russian partners - the Russian Federation and the JSC Technochem Holding - objecting to certain decisions of the Indian partner, wanted to pull out of the project.Sharaf Agencies Private Limited (SAPL) and Titanium Mineral Products Limited (TMPL), the two Indian promoters, floated a joint venture company called Titanium Products Private Limited (TPPL) in association with the Russian promoters for establishment of a titanium project at Chatrapur. The promoters of TPPL signed a MoU with the State Government on October 15, 2008. As per the agreement, Sharaf Agencies would hold 45 per cent stake in the project, Russian Federation 51 per cent and the rest four per cent would belong to JSC Technochem Holding. The Indo-Russian project had drawn much attention as it envisaged utilisation of beach sand minerals to produce titanium sponge, highly in demand the world over. The TPPL decided to invest Rs 2,000 crore in two phases to produce around 1,08,000 tonnes of titanium slabs, 40,000 tonnes of Titanium-Dioxide pigments, 10,000 tonnes of Titanium sponge and 68,000 tonnes of pig iron annually.While x Rs 1,150 crore was earmarked for the first phase, it was decided to utilise the rest Rs 850 crore in the second phase. The project was scheduled to be completed by 2011 and production would being from August 2012. As per a request by the Sharaf company, the district administration acquired over 200 acres of land and handed it over to the company through the Industrial Development Corporation (IDCO). After receiving the rights over the acquired land, construction of boundary wall and levelling of the land were started by engaging the local labourers. Since the works started smoothly, the joint venture decided to acquire another 350 acres of land to develop the Special Economic Zone (SEZ) in the second phase. However, the proposed titanium project ran into rough weather after the Russian promoters threatened to pull out of the project due to disputes with Sharaf Agencies. The IDCO allotted the acquired land in the name of Sharaf Agencies, the applicant, who intended to sub-lease the land to TPPL. But the Russian promoters wanted the land to be directly allotted in the name of TPPL. The Indian partners, on the other hand, were reluctant to transfer the land allotted for the project to the joint venture company Titanium Products Private Limited (TPPL). To sort out the differences among the partners, several meetings were held last year but all went in vain. With no solution in sight, the farmers who had ceded their land for the project are now demanding it back.Under the banner of Bhu Bistapita Kalyan Samiti, the farmers on Sunday decided to stage a dharna in front of the Ganjam collectorate on August 16.
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