Steel Authority of India Ltd is looking at entering the titanium sector and has joined hands with the Kerala Government for exploring the possibility of a titanium project in the State.
“Steel Authority of India Ltd (SAIL) has signed an MoU with Kerala State Industrial Development Corporation (KSIDC) and Kerala Minerals & Metals Ltd (KMML) on behalf of the Government of Kerala for exploring the possibility of setting up a titanium project in Kerala,” Steel Minister Beni Prasad Verma informed the Lok Sabha in a written reply today.
“Strategies such as backward and forward integration will be explored subsequently,” he said.
The project, for which the techno economic feasibility report (TEFR) is under preparation by MECON, will be set up in phases, he added.
Verma said a detailed project report would be prepared after the completion of TEFR and establishing the financial viability of the project.
The state-run PSU had earlier this month inked a pact for the joint venture with KSIDC and KMML.
SAIL Chairman C.S. Verma had said then that the first phase of the project envisages setting up of a 10,000-tonne annual capacity plant to produce titanium sponge.
The estimated cost of the unit, proposed at Chavara in Kollam district where KMML’s plant is located, is around Rs 2,500 crore and MECON, the unit under the Steel Ministry, had already prepared a brief on the project.
If the project is set up, India would become the largest titanium sponge producing country in Asia.