A LANDMARK building is to be transformed into a business centre which will create hundreds of jobs in a bid to kick-start the rejuvenation of Darwen.

Capita, the private firm which runs many of Blackburn with Darwen Council's services is to open the £2million complex at India Mill.

The move will help fill a building which has remained underused for a number of years.

And the firm has confirmed that 230 new staff taken on for a BBC TV licence contract will be based in the town -- a move which was expected when it announced it was hoping to set up a base in the town last month.

Councillors today insisted that Capita could eventually have 400 staff in the base, which is due to open in July, and even more jobs will be created by other companies moving into the mill. Capita also revealed it was considering expanding its plans to build a new business centre in the heart of Blackburn -- so it can cater for more new staff.

The firm is spending the £2million on refurbishing 37,500 sq ft of the second and third floors of India Mill. It is hoped Capita's presence will lead to other firms moving into the building, which is owned by Brookhouse Managed Properties.

Council leader Coun Bill Taylor said: "This could be just the news that Darwen has been hoping for. The jobs planned for the town could be a trigger for much wider success not just in terms of new jobs, but the opportunities for businesses in Darwen too.

Terry Boynes of Capita, said: "India Mill is an ideal site for us. When we signed the contract with Blackburn with Darwen, we committed ourselves to helping the regeneration of all the borough.

Labour councillor Dave Hollings said: "This proves that Darwen is not just forgotten by the council. As I understand it, up to 400 jobs could go there in the end."

Brookhouse Managed Properties manager John Fryer said: "The exact details have yet to be finalised but this is an exciting move for the town."

The council's Liberal Democrat leader Coun Paul Browne, who represents Darwen's Sudell ward: "It's great news for Darwen but only if Capita do what they said they were going to do.

"They have pledged that local people will be employed so I am holding them to that. Capita struck a 15-year, £205million deal to provide many of the council's administrative services last year.

Part of that deal was to assist with the regeneration of Blackburn with Darwen by providing up to 500 new white-collar jobs over a five year period.

Capita has said it has already created 400, including additional council staff and new staff brought into its benefits handling centre in Glenfield Park.

Some 500 former council employees also passed over to the private firm.

In January, the firm unveiled plans to build a five-storey building near to Blackburn town centre within the next three years, which would hold up to 500 staff, including former council workers and additional staff they plan to take on to deal with future contracts.