International Finance Corp (IFC), leading private sector lending subsidiary of World Bank, has decided to pump 135 million euros in the Pune plant of Volkswagen.

IFC officials stated in a communiqué that the Pune plant of Europe's largest carmaker will help in creating jobs locally.

The sources close to the Pune plant said that out of the total investment, 65 million Euros will be pumped by World Bank and remaining 75 million Euros will be funded through bank's other commercial partner lenders like Societe Generale, Bank of Mitsubishi, DBS Bank, and Fortis Bank.

In a separate release, IFC has informed that the plant will have an initial capacity of 1,10,000 units a year, and Volkswagen India will target the local small- to compact-car segments.

As per reports in media, European Investment Bank and German development bank KfW are considering investing to meet the project's remaining financing needs.