IFC to invest 135mn euros in Volkswagen`s Pune plant
WB’s private sector lending arm IFC said it would invest 135 million euros in Volkswagen India`s plant in Pune to help generate jobs.
New Delhi: The World Bank`s private sector
lending arm International Finance Corp (IFC) said it would
invest 135 million euros in Volkswagen India`s plant in Pune
to help generate jobs.
"IFC ... has agreed to invest 135 million euros in
Volkswagen India Pvt Ltd to help the company set up an
integrated car manufacturing plant in Pune, India, that will
help create jobs locally," it said in a statement.
The construction of the Indian manufacturing unit of
Europe`s largest carmaker Volkswagen AG started in 2007 and
the parent German automaker has already invested about 245
million euros in the project.
The plant will have an initial capacity of 1,10,000 units
a year, and Volkswagen India will target the local small- to
compact-car segments, IFC said.
"This investment demonstrates the important
counter-cyclical role IFC plays in supporting a vital project
with significant job-creating potential during challenging
times," said Dimitris Tsitsiragos, IFC Director for Global
Manufacturing and Services.
The European Investment Bank and German development bank
KfW are considering investing to meet the project’s remaining
financing needs, the World Bank Group member said.