Business Daily from THE HINDU group of publications
Tuesday, Mar 25, 2008
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Business Daily from THE HINDU group of publications Tuesday, Mar 25, 2008 ePaper | Mobile/PDA Version |
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Cars Corporate - New Projects States - Maharashtra
(From right) The Maharashtra Chief Minister, Mr Vilasrao Deshmukh; the Fiat India Automobiles Pvt Ltd CEO, Mr Rajeev Kapoor; and the Fiat India Chairman and Tata Motors Managing Director, Mr Ravi Kant, at the signing of MoU with the Government of Maharashtra in Mumbai on Monday. - Paul Noronha Our Bureau Mumbai, March 24 Unfazed by the global economic slowdown, Fiat India Automobiles Pvt Ltd, a 50:50 joint venture between Fiat Group of Italy and Tata Motors, has decided to double its production capacity at its greenfield plant at Ranjangaon near Pune. FIAPL will be investing an additional Rs 2,341 crore over and above the on-going investment of Rs 1,679 crore, the company said today. With a total investment of Rs 4,020 crore, the Ranjangaon facility will now produce two lakh cars, three lakh engines and three lakh related parts and accessories. FIAPL on Monday signed a MoU with the Government of Maharashtra to enhance the production capacity and for backward integration at its Ranjangaon plant. The State Government, on its part, has assured the joint venture company all support for the expansion of the project. Mr V.K. Jairath, Principal Secretary, Department of Industries, Government of Maharashtra, and Mr Rajeev Kapoor, CEO of FIAPL, signed the MoU in the presence of the Chief Minister, Mr Vilasrao Deshmukh. The joint venture company will be manufacturing cars, engines and transmissions for both the partners. Mr Rajeev Kapoor, FIAPL’s Chief Executive Officer, told newspersons that Fiat would be using the joint venture facility to produce its Linea and Grande Punto models later this year. The Tatas did not disclose what models they would be producing at the facility, but made it clear that the plant will not be used for the Nano model. Mr Ravi Kant, FIAPL Chairman and Managing Director of Tata Motors, said the expanded facility will be ready within three to four years. He said both the joint venture partners would put in an equity contribution of Rs 600 crore each and the rest would be pooled in through secured loans. Fiat, Tatas to be equal partners in joint venture More Stories on : Cars | New Projects | Maharashtra | Tata Motors Ltd
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