P& H Joy Mining Equipment a wholly owned subsidiary of US based Joy Global Inc has decided to invest USD 25 million in setting up a manufacturing and servicing facility for high end mining equipment near Durgapur in West Bengal.

The new facility will cater to the company diversified customer base in the country's mining belt in the eastern region including states like Jharkhand, Orissa and West Bengal. While P&H's biggest customers include Coal India and Reliance Power, it also serves the likes of Singareni Collieries, Hindustan Zinc, Hindustan Copper and TATA Steel.

Joy Global Inc a USD 5.5 billion US mining company, is a world leader in surface and underground mining equipment. He added that "We expect a significant growth in mining activity in the eastern region, with projects like JSW Steel at Salboni and expansion of mining activity by Steel Authority of India Limited, both in coal and iron ore.”

Mr Anirudhha Gupta director of P&H Joy Mining said that "We have set a target date of commissioning the first phase of our project by 2013. Initially, we will set up a fabrication unit for mechanical structurals. To start with, we will manufacture the smallest machines in our catalogue.”

Mr Gupta added that "In the second stage, we will start making the transmission equipment and finally in the third phase we take up the electrical parts. However, we are yet to firm up our investment road map for the second and third phase of our project.”

This will incidentally be the second largest US investment in Bengal since Pepsico's Frito Lay set up its unit in the state in 2004.

P&H has taken up 25 acres for its facility inside an industrial park being set up by Bengal Aerotropolis Projects Limited in the Asansol Durgapur area Co promoted by Singapore's Changi Airport, INR 5,000 crore BAPL project is an airport city with a logistics skyhub, IT and industrial parks around it.

(Sourced from ET)