TN puts Tata titanium project on the freeze

CHENNAI: The lessons from Nandigram have been well learnt, at least in Tamil Nadu. In the face of snowballing political opposition to the proposed Rs 2,500-crore titanium dioxide project of the Tatas in southern Tuticorin district, the DMK government has decided to put the project on hold. The state government on Monday announced that it is deferring its decision to revive the project till a consensus is reached through public debate.

In a hard-hitting statement, chief minister M Karunanidhi said on Monday that “certain people are attempting to create an impression that the public is against the project.” Pointing out that the project is “aimed at bringing development to Tuticorin and Tirunelveli districts,” the chief minister said he would take a decision after ascertaining public opinion.

“We will send ministers and senior officers to these areas and conduct public opinion in the presence of mediapersons and public. Based on the report, I will take a decision,” he said. On June 28, this year, Tata Steel signed the MoU with the state to revive its pet project of producing titanium-dioxide using ilmenite from the beach sands of Tuticorin and Tirunelveli.

The pact was signed by Tata Steel MD B Muthuraman and Tamil Nadu industries secretary Shaktikanta Das in the presence of the CM and Tata Group chairman Ratan Tata.

The mining-cum-manufacturing project was originally conceived by the previous DMK regime in 2001, but it could not sign the MoU as the assembly elections were round the corner. Later, AIADMK, which assumed power, signed an MoU with the company.

But there was a delay in the land acquisition as well as tardy progress on the project.
It is estimated that the state government would need to acquire about 10,000-12,000 acres of land for the project. It is precisely this that has become the bone of political contention. Apart from main opposition party AIADMK and its allies like MDMK, even DMK allies like PMK have come out against the project, discounting all claims of job creation and spin-off benefits.

The apprehensions raised by the local population belonging to the dominant Nadar community has also acted as a pressure point. The locals fear that the project will displace them and deprive them of their livelihood.
Joining the war of words, the CM reiterated that the project was revived to make the drought-prone areas prosperous. The chief minister sought to clarify that that the government was not acting in favour of the Tata Group and exhorted the public “to see through the motive of those trying to scuttle the project.”

Refuting AIADMK general secretary J Jayalalithaa’s claim that she put the MoU in cold storage following opinions from district collectors, he said the real reason was that “she has made an unwritten agreement with one particular dealer, who is illegally mining and exporting garnet from the area and making crores of rupees.” Apparently, the said person (VV Minerals) is also a shareholder in Jaya TV. He also regretted that the CPI state secretary D Pandian, an ally of the ruling party, was making “baseless accusations”.

The project proposes to produce one lakh tonnes of titanium-dioxide annually, while the mining capacity will be five lakh tonnes. Currently, India imports 60,000 to 70,000 tonnes of titanium-dioxide per annum with just one manufacturer. The project is expected to generate direct employment opportunities for 1,000 people and indirect employment to 3,000.

At the time of signing the MoU, Mr Ratan Tata had said: “We have assured the chief minister that we will look at investment opportunities in the group’s interest like power and other areas.”