SAIL in tripartite deal with Kerala state PSEs for titanium JV
05 Apr 2013
Steel Authority of India Ltd (SAIL) has signed a memorandum of understanding (MoU) with Kerala government PSEs Kerala State Industrial Development Corporation (KSIDC) and Kerala Minerals and Metals Ltd (KMML), for setting up a joint venture titanium project in the state.
Under the tripartite agreement, SAIL, KSIDC and KMML will explore the possibility of setting up a joint venture titanium project in Kerala.
Speaking on the occasion chief minister Oomen Chandy said the Rs2,500 crore project would lead to overall development of the region and also contribute to faster economic growth of Kerala. He urged the state government and SAIL officials to take steps for early commencement of the project.
The joint venture will initially invest in a titanium sponge and metal plant based on supply of titanium tetrachloride by KMML as phase 1 of the collaboration programme.
In subsequent phases, the joint venture will explore backward and forward integration for ensuring long-term viability of the project.
SAIL chairman CS Verma said the company is continuously on the lookout for new business opportunities in the areas of its competency. The signing of MOU is a step in that direction he said.
This will be the second major titanium project coming up in the state, after the nation's first titanium sponge plant was put up at KMML's Chavara complex in Kerala.
KMML has been set up as a joint venture with Vikram Sarabhai Space Centre (VSSC) and the Defence Metallurgical Research Laboratory in 2011.
Titanium is used in steel as an alloying element (ferro-titanium) to reduce grain size and as a deoxidiser, and in stainless steel to reduce carbon content.
Titanium is also used to make alloys of aluminium, vanadium, copper, manganese, molybdenum, and with other metals. The metal has wide applications in industrial, aerospace, recreational, and emerging markets.
A major part of titanium ore extracted from the earth is used for refinement into titanium dioxide, an intensely white permanent pigment used in paints, paper, toothpaste, and plastics.