World Bank plans to invest heavily in the Pune plant of Volkswagen. The World Bank, the world’s largest private sector lender and an international financial body, plans to invest an initial amount of 135 million Euros which will help in creating jobs locally. Out of the total investment, the World Bank will invest 65 million Euros from its own resources and remaining 75 million Euros will be funded through its other commercial partner banks like Societe Generale, Bank of Mitsubishi, DBS Bank, and Fortis Bank.
Volkswagen has its manufacturing unit in Pune since 2007 and currently has a manufacturing capacity of producing 110,000 cars annually. The company has already invested 245 million Euros in its plant.
"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 investment will also support the development of India's car manufacturing sector and sends a strong signal to other investors in the country," Tsitsiragos added.
