Tata Metaliks Ltd to invest Rs 600cr in state, create 3,500 jobs
Kolkata: Bengal government has approved the expansion of Tata Metaliks Ltd's plant in West Midnapore's Kharagpur, which would come up on a 290-acre plot, state Finance minister Amit Mitra said on Monday.
Mitra was addressing the annual general meeting of the Bengal Chamber of Commerce and Industry in the city He said there will be Rs 600 crore of fresh investment in the proposed expansion of the existing plant. According to Mitra the project would create 3,500 additional employment in the plant.
"The state government has approved the expansion of the Tata group's Rs 600-crore augmentation plans in the state enhancing the ductile iron (DI) pipe capacity by 2 lakh tonne per annum. The state government has already given a go-ahead to the company after the state cabinet had cleared the project," Mitra stated.
Senior officials of the Tata groups had already informed the government that they have a plan for doubling the production capacity of DI pipe from 2 lakh tonne to 4 lakh per annum. The project also includes the enhancement of hot metal capacity and setting up of a 15-MW captive power plant.
It was learnt that the expansion of Tata Metaliks Ltd's plan to double the DI pipe capacity is likely to be completed in the next fiscal. The Tata groups have been focusing on the DI pipe segment, which is growing steadily at 8-10 per cent.
While addressing the gathering, Mitra pointed out that generating employment in the state has been one of the key issues. The expansion of Tata Metaliks would create direct and indirect employment of around 3,500 people. The company already had 200 acre land in Kharagpur while 90 acres additional plot has been granted to the private company.
Taking a dig at the Centre, Mitra said that the corporate tax collection in the current fiscal year goes at the tune of 4.7 per cent where the target has been set at 17.5 per cent.
The growth in the tax collection rate remains at 27 per cent so far.
Mitra also felt the need of stimulation to vitalize the Indian Economy particularly at the time when it is in dire state. During his speech, Mitra also highlighted the economic downturn and the Centre's failure to ensure an upward march of the country's GDP, which has been on decline for the past couple of years. He also blamed the Centre for being in the business of catching headlines in the newspapers. Mitra also pointed out how eight top companies in the country have been keeping Rs 8 lakh crore in their books and showing their reluctance to invest as there is no demand in the market. He also reminded the gathering that Bengal's growth is the highest in the country while Andhra Pradesh comes second. The Bengal's GDP grows at 12.58 per cent in 2018-19 fiscal, Mitra said.