VOLKSWAGEN SECURE US$147 MLN LOAN FOR CHAKAN PLANT IN INDIA

German auto maker Volkswagen said Saturday it has secured a Euro 100-million (US$147 million) loan from the European investment bank to part fund its development of a manufacturing unit at Chakan in Maharashtra.

"We have signed a contract with the European Investment Bank for Euro 100 million. This will be used for our investment at Chakan, where we are setting up a manufacturing facility," a Volkswagen (VW) Group official said from Frankfurt.

VW is investing Euro 580 million at the Chakan plant.

The Chakan plant, which opened in March this year, has an annual capacity of 110,000 units. It would achieve full-capacity production by 2012.

VW, which is planning to launch its mass-segment car Polo in India next year in both hatchback and sedan models, had last month said that the new car would be manufactured in the Chakan plant.

Pre-production testing of the car is currently going on at the facility.

The Chakan facility currently produces a small number of Skoda Fabia. VW also assembles its sedans Jetta and Passat there for sale in the Indian market.

The official said that VW had recently signed a contract for Euro 130 million from the IFC. PTI MSS

"It has been decided to include loans granted by banks in respect of following activities under Micro and Small (Service) Enterprises within the priority sector," RBI said.

Accordingly, consultancy services; broker services in risk and insurance management; third party administration services; educational institutions; training institutes; retail trade and practice of law; among others, would be treated as priority sectors.

These enterprises will be granted loans provided investment in plant and machinery does not exceed Rs 50 million in respect of manufacturing enterprises and Rs 20 million in respect of service enterprises.

Further, the 'Retail Trade' category has also been scrapped from the list of priority sector lending, including it in a new segment to be called the Small (Services) Enterprises.