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Mony K. Mathew

The project, structured by Mecon, is to be implemented in two phases. In the first phase, the capacity will be scaled up to 21,500 tonnes a year and to 33,000 tonnes a year in the second phase.

Thiruvananthapuram , May 20

THOUGH the Rs 256-crore project cleared by the Kerala Cabinet for State-owned Travancore Titanium Products Ltd primarily aims at tackling pollution caused by effluents let out by the company, it also envisages the expansion of titanium dioxide production capacity.

The capacity expansion has become necessary to offset the huge additional investment and keep the company financially viable, according to sources in the Industry Department.

The Cabinet approved the project a couple of days ago in the wake of a closure notice issued to the company by the State Pollution Control Board on its failure to comply with the pollution control norms within the stipulated time. The board issued the notice at the instance of the Supreme Court Monitoring Committee on Hazardous Wastes.

The project, structured by Mecon, is to be implemented in two phases costing Rs 129.4 crore and Rs 126.7 crore.

In the first phase, the capacity will be scaled up to 21,500 tonnes a year and to 33,000 tonnes a year in the second phase.

Along with capacity expansion, the product mix will also undergo changes with the company taking up production of rutile-grade titanium dioxide pigment, which commands a higher price in the market. Currently, it makes anatase-grade titanium dioxide through the sulphate route.

In the first phase, the company will produce 8,250 tonnes of rutile grade, while anatase grade will constitute 13,250 tonnes in the total expanded capacity of 21,500 tonnes a year. In the second phase, the share of rutile grade will go up to 23,100 tonnes in the total expanded capacity of 33,000 tonnes a year.

The first phase of the project will feature the setting up of a rutile coating plant, a copperas recovery plant, an acid regeneration plant and a neutralisation plant for treatment of weak effluents, apart from other facilities for capacity enhancement. In the second phase, the copperas recovery and acid regeneration plants will be upgraded in tandem with the ramped-up capacity.

The sources said production of sulphate-based fertilisers was one of the options that were looked into before finalising the project. But, this was found to be not techno-commercially viable as the market for such fertilisers was already saturated.

The project is planned to be financed at a debt-equity ratio of 2:1. This means the equity component of the project cost will be Rs 85.4 crore, while the loan will work out to Rs 170.7 crore. The repayment of the loan will be spread over seven years from the date of the commissioning of the project.

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