Fiat India Automobiles Limited (FIAL) has succeeded in raising a Rs 2,448 crore loan through Citigroup India. FIAL, which is a joint venture between Fiat Group Automobiles and Tata Motors Limited, had expressed a desire to invest Rs 2,341 crore in its Ranjangaon plant in Pune, to expand the facility. The company wants to scale up its production capacity to 2 lakh cars, 3 lakh engines and 3 lakh automotive parts and accessories. The current capacity of the plant, where the Palio Stile, the Linea and the Grande Punto are being manufactured, is 1.6 lakh units. An industry analyst speculated that the expansion of the Ranjangaon facility may also have something to do with fulfilling the demand for the Nano, which may be assembled in Ranjangaon until the Sanand facility in Gujarat becomes operational.
