The promoters of Indo-Russian industrial project - Titanium Products (TPPL) - on 23 April 2010 signed a tripartite agreement with the Orissa Government and resolved the dispute on implementation of the project.

Under the agreement, Kolkata based Sharaf Group, will withdraw from the project, making way for the Russian promoters - State Property Management Agency with 51 per cent stake in the JV and JSC Tekhnokhim Holding (4 per cent stake) to go ahead with the project on its own. An arbitrator is likely to be appointed within 15 days to adjudicate on the contentious issues of land and investments made by the Sharaf Group.

The Russia based partners are likely to announce their future course of action on implementing the project in a month after holding talks with the state government and the Union Government.

The proposed project has been surrounded by uncertainties as the partners had a dispute over sharing the initial expenses made on the project.

In 2008, an MoU was signed with the state government for setting up the Rs 2,000 crore titanium project at Chatrapur in Ganjam district of Orissa. It was decided that the project will be set up in a JV between the India based partners, Sharaf Agency (SAPL) and Titanium Mineral Products, and the Russia based promoters, State Property Management Agency and JSC Technochem Holding. However, a dispute arose between the two partners as the Sharaf Group demanded Rs 100 crore from the Russian partner towards the initial cost invested in the project.

Related Links:
Project profile