Moscow, June 22 (PTI): Russia's VSMPO-AVISMA Corporation, the world's largest producer of Titanium, is planning to set up a joint-venture with a government-owned company in Kerala to supply aviation metal to Hindustan Aeronautics Ltd.

The corporation, controlled by state-owned arms exporter RosOboronExport (ROE), is in talks with Kerala Minerals and Mining Limited (KMML) for setting up a joint venture for the processing and smelting of Titanium, RBC business daily reported today.

"From the Indian side a protocol of intention has been signed for the construction of a plant for the production of Titanium sponge with an annual capacity of 10 thousand tons," VSMPO-AVISMA General Director Vladislav Tetyukhin said, according to the daily.

"In 2008 we will work out the strategy of the plant and in 2009 it will become operational," he said.

Part of the production of the JV could be imported by Russia and also used in implementation of the joint Indo-Russian Multirole Transport Aircraft (MTA) project.

The Titanium major's JV with KMML is "just first step," the newspaper quoted a source as saying.

"We have an understanding with the Indian Defence Ministry about setting up a venture for the production of Titanium components to meet the requirements of the Hindustan Aeronautics Ltd," a ROE official told the daily.

Indian company Midhani could be picked by VSMPO-AVISMA Corporation as its JV partner for the project, the source said.