Volkswagen gets approval for a plant in Punjab

The Punjab government has given approval to the German automaker Volkswagen to setup an Rs 1,500 mega car manufacturing project in the region.

This project would see the state government receive its largest foreign direct investment (FDI) after a gap of almost four decades.

Volkswagen India project head Peter Walters was present at the meeting where this decision was taken. They can choose between three cities in this region namely Nabha, Ropar or Ladowal.

The German company also received assurance from the Punjab CM Amarinder Singh that the government would provide all facilities and incentives, which were available to super mega projects in the state.

Singh also said in a statement that the company could benefit by developing cars priced between Rs. 4 lakh and Rs. 10 lakh. Knowing the Volkswagen brand, we are not totally sure on how many models the company can actually launch in this price bracket.

This Volkswagen would have an annual production capacity of one-lakh cars per year.