Change time

RF Partner for titanium project is ready to get out of it.

The Indian partner, Indian-Russian venture to build a titanium plant in Orissa agrees to withdraw from the project, provided the Bucs compensation costs incurred, told RIA Novosti on Wednesday the head of Saraf Agencies Private Ltd. (SAPL) Sanwara Shroff (SM Shroff).

Source RIA Novosti, familiar with the negotiations, confirmed Russia's readiness to discuss the size of the kickbacks by independent arbitrators.

Titanium complex in Orissa was supposed to be a pilot project for the use of the old debt paid by India to the Soviet Union, placed in special accounts in rupees at the Reserve Bank of India. The money, according to bilateral agreements were intended to finance Russia's share in joint projects in India.

RF Government, represented by the Federal Property Agency owns 51% registered in 2008 a joint venture Titanium Products Private Ltd. (TPPL), an Indian company SAPL — 45% of the shares of Russian «Tehnohimholding» — 4%.

Shortly after the registration of joint ventures between Indian and Russian shareholders of the conflict broke out. They accuse each other of financial fraud and abuse statutes. Several cases are pending in Indian courts. The main fight broke out over land for construction of the plant, which lease agreements contrary to the administration of Orissa has issued not a joint venture, and SAPL, the land offered for sublease TPPL.

«We decided to withdraw from the joint venture after the receipt of compensation for investment, the size of which, according to our agreement will be approved by the board of arbitrators appointed by the Russian and Indian sides," — he told the agency.

Comment Federal Property Agency RIA Novosti is unable to obtain.

According to Shroff, he invested in the project «more than 1 billion rupees» (about $ 22 million). He also intends to seek compensation for lost opportunities and the associated losses, the amount of which has not opened Shroff.

The parties intend for the second half of May in New Delhi meeting, chaired by the representative of the Ministry of Commerce of India, to discuss the terms of the SAPL refusal of mutual claims, renewal of lease of land and procedural «divorce» questions.

According to RIA Novosti, a source familiar with the negotiations, the Russian side has decided to continue the project without Shroff, but whether Federal Property Management Agency to act alone or find a new partner is not yet clear.

Start of construction project in Orissa integrated chemical and metallurgical complex for the production of titanium dioxide and other titanium products was given during his visit to India in January 2007, Vladimir Putin signing the agreement.

In January 2008, the parties agreed on the establishment of TPPL, which was registered in March of that year. Several months later, Russia transferred to the needs of the company 2.5 billion rupees (50 million dollars), although neither Saraf, nor «Tehnohimholding» their shares are not made. Access to these funds is only the Indian shareholder companies.

The plant planned to be built in 2010, but work has not yet started and its activity is completely paralyzed. It was assumed that TPPL will deliver to Russia scarce raw materials for titanium production: 30,000 tons of titanium dioxide and up to 45 thousand tons of titanium slag per year. — RIA News

See all news