Pune
News:
Fiat India Automobiles will invest Rs.
2,341 crore more at its existing
Ranjangaon facility in Pune to ramp up
its capacity. With this investment,
the company is taking the overall
investment in Pune to Rs. 4,020 crore.
Fiat India is a 50:50 joint venture
between Tata Motors and Fiat Group
Automobiles.
MoU signed
Fiat
India on Monday signed a Memorandum of
Understanding with the Maharashtra
Government for the investment.
“This is a watershed project because
for the first time between Tata and
Fiat such a deal is done anywhere in
the world,” Tata Motors Managing
Director Ravi Kant told reporters at
the MoU signing ceremony. This is the
95th MoU signed by the Maharashtra
Government, attracting an investment
of Rs. 1,19,000 crore since June 2005.
Investment
Both players would invest Rs. 650
crore each and the balance would come
from debt, Fiat India CEO Rajeev
Kapoor said.
Fiat India plans to ramp up its
operation to produce up to two lakh
cars, three lakh engines and three
lakh parts and accessories, according
to a statement. At present, Fiat has a
capacity to make one lakh cars and two
lakh engines. At full capacity, the
Ranjangaon unit is expected to employ
4,000 people.
Maharashtra is a power deficit State.
However for this project, the
Government has promised uninterrupted
power supply.
The Ranjangaon facility is shared by
the Tatas and Fiat to make cars,
engines and transmissions.
At present, the Tatas are not using
the facility to make their cars. The
Tatas plan to use this facility from
2009 onwards.
Fiat would launch cars, Linea and
Gande Punto, in this calendar year
from the Pune facility. At present,
Fiat makes Palio Stile 1.1 and 1.6
models from Ranjangaon.
Forms team to cut Nano cost
Tata Motors has formed a team to look
into ways of cutting the cost of its
Rs. 1 lakh car, Nano. “We have formed
a team. The input costs have gone up,”
Mr. Ravi Kant said.
Bookings for Nano are expected to
start three-months from now.
As part of Phase I, Tata Motors would
manufacture 2.5 lakh Nanos and in
Phase II it would ramp up its facility
in Singur to one lakh more.
Mr. Ravi Kant ruled out the
possibility of Nano being made in the
Ranjangaon factory.
At Pune, the Tatas and Fiat have 50:50
joint venture manufacturing plant.
