Videocon plans capacity expansion

Kolkata: The Videocon group has doubled the capacity for its steel plant in West Bengal to six million tons.

Venugopal Dhoot, chairman, Videocon group said, the company had sent a revised proposal to the West Bengal government and the state government has assured infrastructure support.

Dhoot was speaking at a steel seminar organized by Mjunction edge and Bharat Chamber of Commerce.

With the increased capacity, the investment in the project would stand increased from Rs 15,000 crore to Rs 21,000 crore.

The capacity of the captive power plant would increase from 1,200MW to 1,600MW.

The project would be completed in two phases of three million ton each. Dhoot said, the first phase would be ready in four years from the allocation of natural resources and the second phase in another three years’ time.

However, he clarified that the land requirement would remain the same at 4,000 acres.

The alignment for the land in Asansol district had been completed.

The state government has assured coal linkages for the project.

“We have already written to the government of India and the state government will support us,” said Dhoot.

Iron ore for the project had also been tied up. Videocon has entered into an offtake agreement with an Indonesian iron ore company. He said, the move to double the capacity was in tandem with the growing demand for steel in the country.

“Steel is in shortage,” pointed out Dhoot.

He also said that the proposed deep sea port project in Bengal was also making progress.

The West Bengal government had got the Centre’s nod for inviting bids for developers.

Dhoot was one of the industrialists to have evinced interest in Bengal’s deep sea port project.