Videocon, which already has interests in oil and gas, plans to establish a three million tonne steel plant and a 1,200 MW thermal power project in Asansol-Durgapur area in Burdwan district.
Chairman of Videocon group Venugopal Dhoot said a special purpose vehicle had been floated where Videocon group and Dhoot Brothers would jointly have 50 per cent equity and the remaining would be held by a US firm. The SPV, Videocon Natural Resources Ltd, would list on the stock market later.
He said the two plants would come up on 3,500 acre of land and entail an investment of Rs 15,000 crore. While 70 per cent of the project cost would be funded by debt, the balance would be from equity.
Dhoot said the two projects would provide employment to 10,000 people. He said the projects would come up on barren land and would displace 50-60 individuals. The company would provide suitable compensation to the land losers and did not rule out giving jobs to them.
Dhoot said Videocon was already present in the energy sector and made huge investments in oil. This had helped the group in acquiring knowledge in basic engineering, he said, when asked about the reason for entering the steel sector.
Depending upon the success of the first steel plant, the group would consider setting up more, Dhoot said.
He said that the strategic location would ensure assured coal linkage and easy access to minerals from neighbouring states. The Videocon group is already present in the state in the areas of consumer electronics, IT, biotech and food processing.
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