Orissa government on Thursday inked an MoU for setting up the country's first ever integrated Titanium Chemical and Metallurgical Complex with technical know-how of Russia at an investment of Rs 2,000 crore.

The MoU was signed bewteen the state government and Titanium Products Private Limited (TPPL), a joint venture between the Government of Russian Federation and Saraf Group, to set up the titanium complex at Chhatrapur in Ganjam district.

Terming titanium as the metal of 21st century, the Saraf group chief M S Shroff said TTPL would bring the environment-friendly smelting technology from Russia to produce titanium slag from ilmenite and titanium dioxide and highest value-added product titanium sponge.

The joint venture company had already been allocated land and is expected to commence production by October, 2010.

"The project will provide direct employment to 1200 people", Chief Minister Naveen Patnaik said. Employment scope of related industries would be much more, he said.

The project, through its modern technology would turn Orissa in an industrial value-chain. "The upcoming port at Gopalpur and this metallurical compex together will form the starting point of industrial corridor in southern Orissa," he said.

It would have facilities like titanium slag (1,08,000 tpa), titanium dioxide pigment (40,000 tpa), titanium sponge (10,000 tpa) and pig iron-biproduct (68,000 tpa).

Project promoters had already entered into a long term contract with Indian Rare Earths Limited (IRE) for supply of raw material, primarily ilmenite. – PTI