Tata Steel is setting up a Rs 2,500-crore titanium di-oxide project in Tamil Nadu.
The memorandum of understanding (MoU) for this was signed between the state government and Tata Steel in the presence of chief minister M Karunanidhi and Ratan Tata, chairman, Tata Group, here on Thursday.
The company is open to offering equity stake to other group companies and technology providers as well as for Tamil Nadu government undertakings in this venture.
B Muthuraman, managing director of Tata Steel, said the project is to produce 1,00,000 tonne of titanium di-oxide from the ilminite sands available in Tirunelveli and Tuticorin districts.
India is importing 60,000 tonne to 70,000 tonne of this material every year.
He said that the government will make available the land for ilminite mining. The company will also set up desalination plant and power plants.
According to a government press release, the MoU with Tata Steel is for mining, mineral separation and for the production of synthetic rutile, titanium di-oxide and value-added pigment. The project would employ 1,000 people directly and 3000 indirectly.
Over 10,000 persons would be employed in the agro-related activities.
Tata Steel would implement a resettlement and rehabilitation policy of the government, give priority for employment of those who give land for the project and embark on training programmes for making the villagers employable.