Jaipur, Feb 20 (IANS): A Rs.500 crore Micromax manufacturing plant is all set to come up in Rajashtan's Alwar district following the signing of an MoU between the state government and Bhagwati Products Ltd. here Friday.

Spread across 25 acres, it would be the second manufacturing plant in the country by Bhagwati Products Ltd. for production of mobile handsets, LED TVs, LED Lights etc. for Micromax Brand.

It will be set up at Karoli near Bhiwadi town, about 200 km from here.

The memorandum of understanding (MoU) for the plant was signed by Rajesh Agarwal, chairman of Bhagwati Products Ltd. and co-founder of the Micromax Informatics Ltd., and Veenu Gupta, principal secretary industries, Rajasthan and managing director, Rajasthan State Industrial Development and Investment Corporation (RIICO) Ltd.

C.S. Rajan, Rajasthan chief secretary and RIICO chairman, was also present on this occasion.

"The company plans to invest Rs.500 crore in the project initially and it is expected to provide direct employment to 5,000 persons," an official release said.

As per the MoU, RIICO will support Bhagwati Products Ltd. in establishing the facility in a time-bound manner and facilitate the necessary infrastructure, ecosystem and incentives under various schemes announced by the state and central governments.

Rajan said the government "strongly believes in the prime minister's vision of Make in India and has always encouraged companies to establish their factories and R&D centres in the state".

"The state will reap benefits of this initiative not only for the overall economic developments but will also help in skilling the youth and creating enormous job opportunities in the region," he added.

On the occasion, Agarwal said: "Rajasthan is one of the most important states and the Karoli manufacturing unit will further enhance our manufacturing operations in the country.