Following is an excerpt from a news report in Business Standard.

The Orissa government today signed a memorandum of understanding (MoU) with the Titanium Products Private Limited (TPPL), an Indo-Russian joint venture, for setting up of a Rs 2000 crore integrated titanium complex and sector specific special economic zone (SEZ) at Chhatrapur in Ganjam district.

SM Shroff , chairman of TPPL and the state industry secretary, A P Padhi signed the documents in the presence of chief minister, Naveen Patnaik in the state secretariat.

The company will invest about Rs 2000 crore in two phases. While the first phase will cost about Rs 1200 crore, another Rs 800 crore will be invested in the second phase. The first phase will be completed within a period of 24 months and is likely to be commissioned by October 2010. It will produce 1,08,000 tonnes of titanium slag, 68,000 tonnes of high purity pig iron, 40,000 tonnes of di-oxide pigment and 10,000 tonnes of titanium sponge.

TPPL has already entered into an agreement with the Indian Rare Earth Limited (IREL) for the supply of the raw material Ilminite. The company will require about 2 lakh tonnes of Ilminite annually for its project. India will be the fourth country in the world to have smelting technology required for production of titanium. The products will have applications in the field of aircraft engine, power plants, chemical plants, automobile industry as titanium is light and corrosion resistant.

TPPL will develop a sector specific special economic zone (SEZ) at its plant site for which it has received the in-principle approval from the Centre. However, it will require additional land beyond 250 acres acquired for the titanium complex.

The Orissa government has agreed to supply 65 Mw of power and 3 million gallon per day water for the project.

Speaking on the occasion chief minister Naveen Patnaik  … He said, the project is the anchor industry for a sector specific SEZ for establishment of downstream industries in sectors like high quality paint manufacturing, automotive casting, ductile iron casting, sillicon and zircon based products.

Patnaik said, the upcoming port at Gopalpur and the integrated titanium complex are the foundations for an industrial corridor in southern Orissa. These will further be integrated with the aluminium hinterland in Kalahandi, Koraput anfd Raygada. For the purpose, he has requested the railway ministry to take up the Therubali-Gunupur railway connectivity at the earliest.

Stating that establishment of a quality vocational educational institution offering the most modern trades relevant for the industry will be an important initiative in the skill upgradation of the local youth, Patnaik said, TPPL should explore such possibility. Besides, it should develop partnership with the local technical institutions.