The Hindu : Front Page : State drops plans for Russian tie-up

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Thursday, Jul 17, 2008
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State drops plans for Russian tie-up

Special Correspondent

To invite expression of interest to set up titanium sponge unit in State

Elamaram Karim says government not to allow mining of mineral sand by private companies.

THIRUVANANTHAPURAM: Industries Minister Elamaram Karim said in the Assembly on Wednesday that the government had decided to drop plans for establishing a titanium sponge unit in the State through direct negotiations with the Russian company Rosoboron.

The Minister was replying to the debate on the demand for grants for Industries during which the Opposition alleged that the government was proposing to sign a costly agreement with the Russian company.

Mr. Karim said that the government now proposed to invite expression of interest from international companies to set up the plant on a competitive basis.

He said that the proposal for a deal with the Russian company for setting up the plant through technology transfer was initiated during the UDF rule. The present government had only followed up on that and signed a memorandum of understanding with the company. The cost factor was to be examined by consultants appointed by the government. The decision to drop the plan was not announced so far since the Central government too was involved in the negotiations. He admitted that the previous government too had finally decided to invite expression of interest on a competitive basis.

The Minister said that it was the policy of the government not to allow mining of mineral sand by private companies. However, private investment would be welcomed when value addition was involved.

Mr. Karim denied Opposition allegation that clearance for special economic zones were getting delayed on account of a cold war in the LDF Ministry.

He said that the government had not signed any agreement for transfer of Perumbavoor Rayons to the Elanjikal group. A final decision would be taken only after confirming the financial credibility of the company as directed by the High Court. Discussions would be held with all concerned before finalising the deal.

The government proposed to set up an industrial park at Kasaragod and add more area to the park in Palakkad.

Later, the House passed the demand for grants for Rs. 232.51 crore.

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