German auto maker, Volkswagen, has been successful in attaining loan from the European Investment Bank and this is to part fund a manufacturing unit at Chakan in Maharashtra. The company got a loan amount of about Euro 100-million (US$147 million).
"We have signed a contract with the European Investment Bank for Euro 100 million. This will be used for our investment at Chakan, where we are setting up a manufacturing facility," said a Volkswagen Group official from Frankfurt.
At the Chakan plant, VW has plans of investing Euro 580 million. The VW's plant at Chakan started functioning in the month of March this year and it rolls out 110,000 units a year. And by 2012 it would accomplish full-capacity production. Currently, it is in this facility that the pre-production testing of the VW cars.
The new car that will be launched by VW in India, VW Polo hatchback as well as sedan, will be manufactured at the Chakan plant.
The VW had lately signed a contract for Euro 130 million from the IFC. "It has been decided to include loans granted by banks in respect of following activities under Micro and Small (Service) Enterprises within the priority sector," said RBI.