Fiat, Tatas To Hold Equal Stake In JV

Pune: The Maharashtra Government has given approval for joint venture partners Fiat Group Automobiles S.p.A and Tata Motors Ltd to restructure the existing 51:49 shareholding respectively to an equal partnership with both companies holding an equal stake in the Ranjangaon based Fiat India Automobiles Pvt Ltd (FIAPL). The approval, which came in early February, is subject to the joint venture entity satisfying some procedural requirements of the approval. Fiat proposes to finish these formalities at the earliest and hopes to have the equal equity partnership in place before the end of the fiscal. As per the original pact, drawn up in October 2007, the Government had introduced a condition that Fiat should hold more than 50 per cent of the equity. Both the partners have committed to infuse an equal amount in the project that envisages manufacture of cars for both companies and also production of Fiat engines and power trains for the domestic market initially and for global market as well in time.