Mumbai: Tata Steel has revived its mega Rs2,500-crore project to produce titanium di-oxide from ilmenite. The company has signed a fresh memorandum (MoU) with the Tamil Nadu government for mining beach sands of Tirunelveli and Tuticorin districts in south Tamil Nadu.

Tata Steel managing director B Muthuraman and Tamil Nadu industries secretary Shakthikanda Das signed the MoU in the presence of chief minister M Karunanidhi and Tata Group chairman Ratan Tata at the secretariat in Chennai.

The original MoU was signed in 2002 during the previous AIADMK government but the project did not take off in the last five years.

"It is a significant project for Tata in Tamil Nadu. The project will create considerable employment opportunities," Ratan Tata said after signing the MoU.

The project for converting ilmenite present on the surface of land to titanium-di-oxide will be implemented over a period of six years, said Muthuraman.

Titanium-di-oxide is used as a base for pigments in paint industry.

At present, Muthuraman said, India was importing about 70,000 tonnes of titanium-di-oxide every year, as there was only one manufacturer as of now.

"The project will be serving India''s needs, besides helping in the development of Tamil Nadu. It will prove to be a boon to the local population especially in drought-prone areas where agriculture is not the main source of income," he added.