RPG Enterprises is setting up a management college in Kolkata with an investment of Rs 45 crore (Rs 450 million). The institute, spread over 5.5 acres, is scheduled to start from academic year 2009-2010.

This is the first initiative of the company to enter mainstream education. The company runs the RPG Institute of Retail Management in Chennai, which is a training institute for frontline staff and store managers.

"The construction has already started and the facilities will be ready by January 2009," said RP Goenka, former chairman, RPG Enterprises. The name of the institute has not been decided yet.

"Earlier, we wanted to set up the college in Jaipur, but could not get approval. So with the support of the state government, we bought the land in Kolkata itself," Goenka said.

The institute plans to admit students through the Common Admission Test. It plans to apply for a CAT-affiliation in August 2008 so that the first batch of 120 students can be admitted in May 2009.

The institute plans to increase the capacity to 500 students. The group is on the lookout for a director for the management college and is also exploring foreign tie-ups.

The institute will also soon seek the approval of the All India Council for Technical Education (AICTE), the regulatory body for technical education.

Goenka said the state was very supportive and that affiliation from Kolkata University could come any time.