LG plans Rs 500 cr unit near Pune

South Korean consumer electronic giant LG is setting up its mobile phone and DVD player manufacturing unit at the Ranjangaon Industrial Estate near Pune at a cost of Rs 500 crore.

The company has been allotted 50 acre of land at the estate, which will be developed by the Maharashtra Industrial Development Corporation (MIDC). The plant is likely to be operational by March next year.

LG officials signed a memorandum of understanding with chief minister Vilasrao Desmukh to set up a plant at Ranjangaon, where LG already has a television and washing machine manufacturing facility. The state has agreed to give LG, the status of a mega project.

If any industry invests Rs 500 crore and employs at least 1,000 persons in the developed areas of the state, then that project is given a mega project status. And if the project is in an undeveloped area, with an investment of Rs 250 crore and employs 500 persons, it is given a mega project status.

If the project is given a mega project status, then it is exempted from paying value-added tax (VAT), stamp duty, electricity duty and octroi.

Also, LG's four South Korean vendors which include companies such as Starrion, Dongli and Nanco, are also coming to Ranjangaon. They will be investing another Rs 200 crore and have been allotted 20 acre of land at the Ranjangaon MIDC.