Videocon, HFCL to invest in Jharkhand

HAZARIBAGH, DEC. 25. Two corporates, Videocon International Ltd. and Himachal Futuristic Communication Ltd. (HFCL), would separately invest Rs. 50 crore each in the newly formed State of Jharkhand.

The Union Finance Minister, Mr. Yashwant Sinha, today laid the foundation of the two projects in the Hazaribagh industrial area here.

Mr. Sinha said these were the first two major investments which Jharkhand had attracted since its formation 40 days ago.

The Finance Minister said he was waiting for the formation of Jharkhand, adding that more investments would start to flow in this place where he hailed from.

The joint managing director of Videocon International, Mr. R. N. Dhoot, said the company would deploy Rs. 50 crores in two years which would be used to start the manufacturing facility for colour television and washing machines.

Mr. Dhoot said initially, the Hazaribagh factory would produce 5,000 colour TVs and it would be the sixth plant of Videocon in India after Aurangabad, Bangalore, Calcutta, Tamil Nadu and Gujarat.

On the employment potential of the unit, Mr. Dhoot said nearly 500 persons would be directly employed and mostly the locals would be absorbed.

Later, Mr. Dhoot told visiting reporters from Calcutta that the Videocon group had sought some fiscal incentives from the West Bengal Government to allow expansion of the Salt Lake factory involving an investment of Rs. 35 crores. He said the group might also diversify into mining.

The Chairman of the HFCL group, Mr. Mahendra Nahata, said the company would set up state-of-the-art telecom equipment manufacturing plant in the Jharkhand area.

He said the unit would employ 300 persons and locals would be taken.

Both Videocon, and HFCL plants would distribute the products in Bihar and Jharkhand regions.

The Chief Minister of Jharkhand, Mr. Babulal Marandi, said the State lacked proper industrial climate and the State would initiate measures to bring in more investment.

- PTI

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Section  : Business
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