Tata Steel’s Titanium-di-oxide project, to be set up in Tamil Nadu, is likely to start production in three years’ time. The company has completed the feasibility study and discussions are on within the company in handling other issues such as water availability etc. The overall feasibility looks good and the quality of material is encouraging, managing director B Muthuraman said when asked about the status of the project. It may be recalled that Tata Steel had signed an MoU with the Tamil Nadu government in 2002 to set up this project. 

Mr Muthuraman said that water availability was an issue and it is being discussed whether water should be taken from the Tambaraparani river or a desalination plant be set up to meet the project’s water requirements. He further said that if a desalination plant is opted for then a power plant needs to be put up to supply electricity for it. This, Mr Muthuraman said is crucial as cost of desalinated water without a power plant worked out to Rs 60 per cubic meter while it was only Rs 20 per cubic meter with a power plant.

Tata Steel is also looking at who will put the power plant. The power generated by the unit would be supplied to the desalination plant and the excess power would be sold to the Tamil Nadu Electricity Board (TNEB). The 1,00,000 tonne capacity titanium-di-oxide project was initially estimated to cost Rs 1,600 crore (without the desalination/power plant).