It causes concern that the Rs.25000 milliion Titanium dioxide project of Tatas in Tamil Nadu is not making headway.
It makes sad reading that Tatas may not be able to proceed with the Tatanium dioxide project. Titanium dioxide is a great investment opportunity in India , since India has around 14% of the world reserves of ilmenite mineral, which is the starting material for the production of Titanium dioxide pigment.
India’s present production of Titanium dioxide pigment is less than 1% of the global production and the global demand is steadily increasing at the rate of 4% per annum. Indian demand is also steadily rising at 9 to 10% per annum.
One cannot think of any organisation in India more qualified and competent than Tatas to set up this Rs.25000 million Titanium dioxide venture in India. Obviously, the Tuticorin location in TamilNadu for setting up the Titanium dioxide project is the most appropriate one.
The reason for the project of Tatas facing stumbling block in Tamil Nadu is that the Tatas seem to be giving more importance to the acquisition of around 10000 acres of land for the project and appear to be ready to give up the project itself in the absence of acquiring such vast tract of land.
Any person with knowledge of Titanium dioxide project will think that the demand of Tata’s for around 10000 acres of land for the project cannot stand the scrutiny of an impartial and independent cost benefit analysis.
Most TiO2 plants in the world, even larger than that of Tata’s proposed project, do not have the mining facilities and do not own the ilmenite mines. Without the need for the mining facility , the requirement of land for the project of Tatas can be only around 500 acres.
Indian Rare Earths Ltd. is already operating large ilmente mines in Ganjam district in Orissa and the ilmenite from Orissa are largely exported without being converted into value added product.
It is difficult to understand as to why Tatas insist on acquiring vast land for mining ilmenite on their own, when they can procure the ilmenite from Orissa. Ilmenite from Orissa can be comfortably brought to Tuticorin by sea.
From the point of view of the economics of operation and optimising the investment, buying ilmenite should be a far more advantageous proposition than producing ilmenite by Tatas.
Tatas should not let go this opportunity to set up Titanium dioxide project that would bring glory both to the country as well as Tata group. Tatas should give up their love for 10000 acres of land for the sake of setting up valuable Titanium dioxide project.
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