Russia has sought India’s help in recovering funds stuck in its failed joint venture project with Kolkata-based Saraf Industries for production of titanium in Odisha.

The joint venture company had proposed to make investments worth ₹2,000 crore in the project in two phases.

Visiting Russian Deputy Prime Minister Dmitry Rogozin discussed the country’s concerns with Commerce & Industry Minister Anand Sharma this week. .

Dues from PSU

“The Russians are very upset about the failed project. They want the Government’s help in recovering their money locked in the project,” a Commerce Department official told Business Line . Russia has also asked for dues from public sector Indian Rare Earths Ltd, which had placed a supply order with the disputed joint venture in 2010, but which could not be fulfilled due to a quarrel between the partners. IREL had then invoked the ₹50-crore bank guarantee.

The proposed joint venture fell through because of disagreement between the partners — Russian Technochim Holding, the Russian Government and Saraf Industries — over allocation of land. The Indian promoters refused to transfer 200 acres that it had obtained from the Odisha Industrial Infrastructure Development Corporation in the name of the joint venture company. The matter is currently under litigation.

Russia has expressed interest in setting up a Special Economic Zone (SEZ) for manufacturing titanium in Odisha. India has asked for a separate proposal.

Saraf Industries now has plans of going ahead with the titanium project on its own. It plans to use Chinese technology for the project.

Related Topics
comment COMMENT NOW