The Maharashtra government has given approval for joint venture partners Fiat Group Automobiles SpA and Tata Motors 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 (FIAPL).

Both the partners will invest 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. As per current estimates, the total investment is estimated to be around Rs.4,000 crore, to be made in phases as per the requirements.

As per the original agreement, which was signed in October 2007, the government had introduced a condition that Fiat should hold more than 50 per cent of the equity.