India Telco Construction to spend $152 mln on plant

MUMBAI, Dec 14 (Reuters) - India's Telco Construction Equipment Co Ltd, a joint venture of Tata Motors (TAMO.BO: Quote, Profile, Research, Stock Buzz) and Hitachi Construction Machinery Co (6305.T: Quote, Profile, Research, Stock Buzz), will spend 6 billion rupees ($152 million) on a new plant in West Bengal state.

The company already has two manufacturing facilities in the country and is expanding its capacity to meet the growing demand for construction equipment in the booming economy, it said late on Thursday.

Construction of the facility for earthmoving and construction equipment as well as research and development will begin shortly in the eastern state of West Bengal, it said.

The 250-acre site will also house a vendor park, with a separate investment of 5 billion rupees by 20 vendors, it said.

The first phase of construction will be completed by March 2009, and the final phase by March 2011, it said. ($1=39.4 rupees) (Reporting by Rina Chandran; Editing by Ranjit Gangadharan)