The project to build the facility in the state of Orissa to produce titanium dioxide and other titanium products was initially estimated at $260 million but is expected to rise to $500 million.
The decision to establish a Russian-Indian titanium producing facility, Titanium Products Private Ltd., was made at a Russia-India summit in January 2007. A corresponding agreement was signed between Russia's State Property Committee, the St. Petersburg-based engineering company Tekhnokhim Holding and India's Saraf Group in February 2008.
Russia's share in the project is 55% and is expected to be financed with funds set aside by India to repay its outstanding debts to Russia.
The management of the Russian-Indian joint venture confirmed that the proposed budget would be reviewed.
"Capital investment in the company must be revised and the issue of investment return will be decided after a review of the budget," the management said.
The construction of the titanium facility on a 100-hectare site is expected to last 24 months and be completed by October 2010.
