Kolkata: Videocon group has signed up a memorandum of understanding (MoU) with the West Bengal administration to establish steel and a power plant in the state.

The consumer durables major will invest around Rs 15,000 crore on this new project.

After signing the MoU, Videocon’s Chairman Venugopal Dhoot said that the company’s new steel plant will have an annual capacity of 3 million tonnes whereas the power plant will have capacity of 1,200 megawatts annually.

Mr. Dhoot also told that the investment would be made through a special purpose vehicle (SPV) where Videocon group and Dhoot Brothers would collectively possess 50 per cent equity and the resting would be owned by a US company.

The SPV, Videocon Natural Resources Ltd, would list on the stock exchange afterward.

The total land coverage by the two plants would be 3,500 acres. Whilst 70 per cent of the project cost would be financed through debt, the remainder would come from equity.

Dhoot said the new plants would offer work to 10,000 people in the state. He said the projects would come up on unproductive land and would dislocate 50-60 persons.

The company would give suitable recompense to the land losers and did not reject offering jobs to them.