Kolkata: Telcon Construction Equipment Manufacturing Ltd is all set to set up an earth moving equipment making company at Kharagpur in West Bengal.

The company would invest around Rs 600 crore on the project.

While making this announcement, Industry minister Nirupam Sen stated that the government has already allotted more than 250 acre of land to the company.

Mr. Sen said that the government would also allot an extra 90 acre to house 20 vendors, which would bring another investment of Rs 500 crore in the country.

The new project would offer direct employment to around 1,000 people and indirect employment to many others.

Tata Motors possesses 60% stake in Telcon, while Hitachi holds the remaining 40%.

In addition to the construction plant, the company would also establish a research and development (R&D) centre in the country.

The project would commence production in 2011.

In reference to the Tata Motors small car project at Singur, Mr. Sen told that 55 vendors had already decided to establish auto component divisions.

The 15 vendors has already started the construction, he said.