Videocon's Rs 12,000 cr steel project depends on coal linkage

KOLKATA: The joining of a US partner in the Rs 12,000-crore steel and power project by Videocon group in West Bengal depended on coal linkage, group chairman V N Dhoot said here on Friday.
   
"The JV partner from US will join once the coal linkage is finalised. We hope it would be done shortly," Dhoot said at the launch of an Assocham study on investment in West Bengal between January to November 2007.
   
"It would be 51:49 JV with the US partner. Our group company Videocon Steel and Power Ltd will implement the project," he said.
   
The JV partner wanted all infrastructure in place and except coal linkage everything was available. Dhoots' company would seek SEZ status for the project.
   
Dhoot said Rs 8,000 crore would be spent on the steel plant and Rs 4,000 crore for 1,000 MW coal fired power plant.
   
The company has identified 2,000 acre near Asansol and has talked with the 250 families for the land.
   
"We will negotiate with owners of the land and then ask government to complete the acquisition process. This is in line with Assocham's recommendation on land acquisition," Dhoot said.
   
"We are ready to pay in stock or money to the owners. Most of them want money against shares of the project," he said without disclosing the price for the land which the group was willing to pay.
   
Dhoot speaking about its other projects said the group needed some 200 acre near the city area for the semi-conductor project.
   
The group has lined up Rs 2500 crore for an IT park in Kolkata.