Haldia, Jan. 2: Automobile battery maker Exide Industries plans to invest Rs 120 crore in a new smelting unit in Haldia, following an assurance from Bengal chief minister Mamata Banerjee of additional land from the Haldia Development Authority.

Exide has sought around 25 acres for a 30,000-tonnes-per-annum smelting plant near its battery manufacturing unit in Haldia. The company has also sought additional land from the Calcutta Port Trust to expand the Haldia plant, which is spread across 41 acres and contributes 30 per cent to its total business.

"We plan to set up a smelter unit in Haldia once we get additional land, Exide is a debt-free company. We will be able to invest Rs 120 crore and set up the new unit," MD and CEO Gautam Chatterjee said.

"I have asked the Haldia Development Authority to look into this," Mamata said after the inauguration of the company's battery manufacturing unit here. Exide officials said the new unit could be ready within 15 months of the company getting land.

Exide's other smelting units are located in Pune and Bangalore with a cumulative capacity of over 1.5 lakh tonnes per annum. Local smelting units enable manufacturers to source domestic recycled lead and insulate them from volatility in raw material prices.

The company has invested Rs 700 crore in the new Haldia unit. Following the operationalisation of the unit, the plant's capacity will increase to 35 lakh units.

Exide vice-chairman Rajan B. Raheja was present at the inauguration of the new unit today. It has been built in technical collaboration with US-based East Penn Manufacturing Company.

Software park

Mamata today inaugurated the state's eleventh software park in Haldia. Construction of the 44,000 square feet Haldia IT park had began in 2015 at an investment of Rs 24 crore.

"The IT park is fully operational but no company has shown any interest," a source said.