The European Investment Bank has reportedly approved a Euro 100 million (approx Rs 710 crore) loan for Volkswagen (VW) India, primarily to part-finance the company's new car manufacturing facility in Pune, Maharashtra. The loan is a part of the Euro 580 million (approx Rs 4,118 crore) being invested in India by the VW Group.
The financing contract signed on 18 September 2009 is expected to help VW set up the manufacturing facility to produce three models of small cars, specifically for the Indian market. The new models are expected to be equipped with more modern engines, with low-emission technology compatible with the local fuel quality. This will ensure compliance with the tighter legislation on emissions to be introduced in the country from April 2010.
Source : ProjectsToday
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