Two Russian companies, Technokhim Holding and NPF Pigment, have planned to set up a 50,000-tonne capacity titanium dioxide plant near Gopalpur in Orissa. The investment in this project is estimated at Rs.1,000 crore. The proposed project would also include production facilities for 1.30 lakh tonnes of triple super phosphate fertiliser and 5,000 tonnes of iron oxide pigments.

The Kolkata-based Saraf Agencies, which has entered into an MoU with Industrial Development Corporation of Orissa (Idcol) to set up a Beach Sand Complex based on the heavy minerals deposit on the Gopalpur coast, has roped in the Russian companies. In fact, Saraf Agencies has already signed a protocol of agreement with the Russian companies to form a joint venture company (JVC) to implement the pigment project.

Meanwhile, Saraf Agencies along with an Australian company, has conducted a survey of the area and submitted the pre-feasibility report to Idcol. According to the survey, the area has 19 million tonnes of heavy minerals, of which 6 million tonnes are illumenite, the raw material for titanium dioxide.

In the JVC to be formed, Idcol would have 26 per cent stake. Idcol would set up facilities for production of 2.5 lakh tonnes of illuminite with an investment of Rs.200 crore.

Idcol, which has the mining prospecting lease for the heavy minerals deposits between Rushikulya Mouth in the south and Chilka Mouth on the north along the Bay of Bengal in Ganjam district, has applied for mining lease rights on the area.