Fiat India Automobiles Private Limited (FIAPL), equal joint venture between Fiat Group Automobiles S.p.A and Tata Motors Limited, signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to enhance the production capacity and for backward integration at its Ranjangaon plant in Pune. The facility manufactures cars, engines and transmissions both for Fiat and Tata cars. The upcoming cars from Fiat – Linea and Grande Punto will also be manufactured from this facility.
The Government of Maharashtra has taken multiple initiatives to attract more investment in the State and has agreed to provide all the necessary support to the expansion of the project. The MOU will facilitate backward integration, increase in capabilities for production of cars, engines and transmission for captive and non captive consumption.
Fiat will increase the production of Ranjangaon facility to 2, 00,000 cars, 3, 00,000 engines and 3, 00,000 parts and accessories. Fiat will also invest Rs 2,341 crores extra for this purpose taking its total investment to Rs 4,.020 crores. The facility will provide employment to one thousand people at full capacity.
The MoU was signed by Mr. V. K. Jairath, Principal Secretary, Department of Industries, Government of Maharashtra (GoM) and Mr Rajeev Kapoor, CEO, Fiat India Automobiles Private Limited, in the presence of Mr Vilasrao Deshmukh, Hon’ble Chief Minister of Maharashtra, Mr Ashok Chavan, Hon’ble Minister of Industries, GoM, Mr. Johnny Joseph, Chief Secretary, GoM and Mr. Ravi Kant. MD TATA motors Ltd. and Chairman FIAPL.
Mr. Rajeev Kapoor, CEO, Fiat India Automobiles Private Limited said on the occasion, “The MoU inked with the Govt of Maharashtra is an important step in realising Fiat’s expansion plans in India.The MoU will help us meet increased customer demands and simultaneously facilitate backward integration. Fiat as a company has always operated from the State of Maharashtra which has been extremely conducive for our growth