The government is examining a revival plan for Travancore Titanium Products (TTP), company managing director B. Jyothikumar has said.
In response to a news item which appeared in The Hindu on Monday, Mr. Jyothikumar said the turnaround of the company would require capital investment worth Rs.50 crore but it would not be pragmatic to expect infusion of the amount totally from the government.
It envisaged to supplement the government contribution with loans from banks as well as profitable public sector undertakings.
Raw material issue
The government was also discussing a permanent solution to the hitches in illmenite availability. Production of titanium dioxide had not been restricted to 900 tonnes per month.
During July, it was 1,231 tonnes. But it may not be possible to sustain the level due to problems in cash flow, adverse market conditions, and non-availability of quality illmenite.
A maximum of 1,500 tonnes could be achieved if illmenite from Chavara was available, for it contained 60 per cent titanium dioxide.
But illmenite production at Indian Rare Earths, Chavara, had been zero or very low for quite some time.
The production capacity of the plant would range only between 1,200 and 1,250 tonnes with illmenite secured from other sources.
A plan to produce value-added products from gypsum, an output of the acid neutralisation plant, had been evolved.
The scheme would be implemented only within two or three years and by then it would be able to tackle the cash-flow issues through suppliers’ credit and working capital support from the banks.
The government had been supportive in resolving the issues faced by the company, he said.