The Orissa Government has signed a memorandum of understanding (MoU) to set up Rs 2000 crore integrated titanium complex and sector specific special economic zone (SEZ) at Chhatrapur in Ganjam district.

The MoU was signed between the state government and Titanium Products Private Limited (TPPL), a joint venture between the government of Russian Federation and Saraf Group.

SM Shroff, chairman of TPPL and the state industry secretary, A P Padhi signed the documents in the presence of Chief Minister, Naveen Patnaik in the state secretariat.

The company will invest about Rs 2000 crore in two phases. While the first phase will cost about Rs 1200 crore, another Rs 800 crore will be invested in the second phase.

The first phase will be completed within a period of 24 months and is likely to be commissioned by October 2010. It will produce 1,08,000 tonnes of titanium slag, 68,000 tonnes of high purity pig iron, 40,000 tonnes of di-oxide pigment and 10,000 tonnes of titanium sponge.

Speaking on the occasion Orissa Chief Minister Naveen Patnaik said, "The project will provide direct employment to 1200 people. Employment scope of related industries would be much more.”

Patnaik said that the upcoming port at Gopalpur and the integrated titanium complex are the foundations for an industrial corridor in southern Orissa. These will further be integrated with the aluminium hinterland in Kalahandi, Koraput anfd Raygada. For the purpose, he has requested the railway ministry to take up the Therubali-Gunupur railway connectivity at the earliest.

The joint venture company had already been allocated land of 250 acre.