Question : IMPORT OF TITANIUM DIOXIDE

(a) whether the Government has received any representations regarding problems being faced by the Kerala Mineral and Metals Limited in Chavara and Travancore Titanium products in Trivandrum;

(b) if so, the details thereof and the reaction of the Government thereto;

(c) whether the import of Titanium Dioxide has adversely affected the domestic production and sale of Titanium products in Kerala;

(d) if so, the details thereof; and

(e) the other steps being taken to protect the domestic titanium industry in the country?

MINISTER OF THE STATE IN THE MINISTRY OF PRIME MINISTER’S OFFICE (SHRI PRITHVIRAJ CHAVAN)

(a) (b) (c) & (d) In January 2007 & January 2008 Shri Elamaram Kareem, Minister for Industries, Government of Kerala had written to Commerce & Industry Minister requesting the Central Government to increase the import duty rate on rutile grade Titanium Dioxide Pigment. The matter was examined by the Department of Commerce in consultation with Department of Atomic Energy and the Hon’ble Minister was informed by the Department of Commerce that it is not desirable to increase the import duty considering the low domestic production.

(e) In order to protect the domestic Titanium Industry the Government has taken the following steps;

(1) Notified the Beach Sand Mineral Policy on 6.10.1998 with a view to encourage private sector participation in beach sand mining.

(2) With effect from 1.1.2007 the titanium bearing minerals and ores (Ilmenite, Rutile and Leucoxene) have been removed from the list of Prescribed Substances and thereby dispensed with the licensing requirement.

(3) Department of Industrial Policy & Promotion vide Press Note No.6(2008) dated 12.3.2008 notified the FDI Policy for mining Titanium bearing minerals and ores. FDI upto 100% will be allowed with prior government approval in mining and mineral separation of titanium bearing minerals & ores is permitted subject to sectoral regulations and the Mines and Minerals (Development and Regulation) Act 1957 and value addition facilities being set up along with transfer of technology.