IFC to invest e135 m in Volkswagen’s Chakan project

PUNE: The International Finance Corporation (IFC), the World Bank���s private equity arm, will invest e135 million in Volkswagen India���s greenfield manufacturing site at Chakan. IFC will invest e60 million in the equity, or quasi equity, of the project and provide a syndicated loan of up to e 75 million. VW India spokesperson Kurt Rippholz said the investment had been committed.

���IFC���s investment is in the normal process of financing an investment like this. We are now waiting for the approvals, which could take three-four months to come in,��� he said.

The site at Chakan, about 40 km from here, will be inaugurated on March 31 by group chairman Martin Winterkorn, who will be leading an 11-member delegation comprising the top management of some of VW���s brands and businesses. Among those who will be present at the inauguration of the plant are Skoda Auto chairman Rheinhard Jung and Rupert Stadler, chairman of VW���s premium car brand Audi.

Also present will be Harald Schomburg, director of sales and marketing, VW Commercial Vehicles, which has a fledgling presence in the country. The Chakan plant will begin commercial operations with the SkodaAuto Fabia and produce the VW Polo next year. Both cars share a common platform, hence the vendors base will remain the same.