India-Russia to set up 40,000tpa titanium dioxide plant

Russia and India today agreed to build a 40,000 tpa titanium dioxide plant in Orissa, which New Delhi will finance through part-repayment of its debt to Russia, estimated variously at between $1 billion and $2 billion.

Russia will take 30,000 tonnes of the plant's output, about half its requirements, once production starts in 2009.

Titanium is used to create strong, lightweight parts, ranging from armour plating to airframes and components for the aerospace, transportation and chemical processing industries.

Putin said on Thursday he expected the Russian and Indian finance ministries to sign an agreement in the next two days to repay India's debt to Russia through a series of major investment projects.