Maharashtra’s industry minister, Subhash Desai has said the state government wants to roll out a red carpet for investors in the state, and reduce red tape. He was speaking at last week’s inauguration of Volkswagen’s engine plant at Chakan.

Inaugurating the facility in which Volkswagen has invested approximately Rs 240 crore, chief minister of Maharashtra Devendra Fadnavis asked leaders of industry, especially in the passenger car segment, to get in touch with the government directly. He welcomed Volkswagen’s decision to further invest in the Chakan area and create many jobs. The minister also said that land procurement outside of the industrial parks will be made easier, and that labour laws are being looked into so that so it is a ‘win-win situation”.

The government has also slashed the number of permissions required from 76 to 25 to attract investors to the state.  

The Volkswagen Group’s chief representative in India, Mahesh Kodumudi said the 1.5-litre TDI engine that will roll out from the new plant has been developed to suit Indian conditions. The plant was built with the help of experts from Volkswagen’s engine plants in Salzgitter, Germany and Polkowice, Poland and will create 260 direct jobs. At full ramp up, the plant will be able to assemble in the region of 98,000 engines per annum in a three-shift routine. The plant includes an engine testing facility.

Volkswagen India, which produces the Polo, Vento, and its sister company’s Skoda’s Rapid sedan at the Chakan plant, has invested $1 billion (Rs 6,317 crore) in India so far. The Chakan plant was set up in March 2009 and is one of the biggest investments of a German company in India so far, the company said. The facility includes a body shop, paint shop and an assembly line. VW India began exports from the 130,000 unit plant in 2011 with the first shipment to South Africa, and a year later to the Middle East. In 2013, the first Ventos from Chakan were exported to Mexico.