Videocon to go ahead with Rs.8,000 Crore LCD,Chip plant in Navi Mumbai

Diversified business group Videocon said it would go ahead with its proposed Rs 8,000 crore LCD and semi-conductor production facility in Maharashtra after the state government gave its approval.“We have been informed that the state cabinet has approved our proposal to set up the plant. We will have the foundation stone laying ceremony on 9 October,” Videocon Group chairman Venugopal Dhoot said.He said the plant, which will get a central government grant of Rs2,000 crore, would go onstream in three years.“It will have the capacity to produce 20 crore units annually of LCDs, mirco circuits and semi conductors,” Dhoot said, adding that despite the controversy surrounding the land deal the group decided to stick in Maharashtra.“I have had calls from the Italian government to set up the LCD plant. Also, states like Tamil Nadu, Andhra Pradesh and West Bengal showed immense interest but we (the group) decided to stay in Maharashtra,” he said.Dhoot said that Videocon Group would pump in Rs6,000 crore to the project.“The funds would be raised through debt, equity and public issue and details are being sorted out,” he said.The plant to be set up on 275 acre of land in Navi Mumbai will generate employment for 10,000 people, he said.It had become a controversial issue with state revenue minister Narayan Rane objecting to the land deal and resigning from his post.The state cabinet, however, decided to stick with the project despite the objection.