Tata Steel, on Thursday, signed a memorandum of understanding (MoU) with the Tamil Nadu government for setting up a titanium di-oxide plant in southern Tirunelveli district at a cost of Rs 2,500 crore.

 The project will have a production capacity of one lakh tonne of titanium di-oxide and provide direct employment to 1,000 people and indirect employment 3,000.

The MoU was signed by Tata Steel Managing Director B Muthuraman and Industries Secretary Shaktikanta Das in the presence of Chief Minister M Karunanidhi Tata Sons Chairman Ratan Tata and State Chief Secretary L K Tripathy were also present.

The company will also set up a desaliantion plant and co-generation power as part of the project. The company will give priority in employment to families which provide the land for the project. It will also train the local people to make them employable.  Briefing reporters, Mr Tata said it was a significant project of the Tatas in Tamil Nadu and “we have promised the Chief Minister that we shall look at other investment areas like power.”

Mr Muthuraman said the project would be implemented in the next six years. Since titanium di-oxide will be made from ilmenite, “for every 100 tonnes of sand mined, 90 tonnes will have to be deposited back.” Therefore, the project required a large area, around 10,000 to 12,00 acres, and the government had promised to get the land “as early as possible.”

Mr Muthuraman said titanium di-oxide “is used as a base for pigment in the paint industry.” At the moment, there was only one major plant in this field and India was, therefore, importing 70,000 tonnes every year, he said.