IFC to invest 135mn euros in Volkswagen`s Pune plant
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Last Updated: Thursday, August 06, 2009, 20:35
  
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.

Bureau Report


First Published: Thursday, August 06, 2009, 20:35


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