Date:08/01/2005 URL: http://www.thehindubusinessline.com/2005/01/08/stories/2005010801110200.htm

Back AP awaits Volkswagen board nod for car plant

Our Bureau

Dr Helmut Schuster, India Project team leader, Volkswagen (second from right), and Mr Ashok Jain (right), Consultant for the company, with Mr Botsa Satyanarayana, Major Industries Minister of Andhra Pradesh, after meeting the Chief Minister, Dr Y.S. Rajasekhara Reddy, in Hyderabad on Friday. — A. Roy Chowdhury

Hyderabad , Jan. 7

WITH the news about Volkswagen AG planning a greenfield automotive plant in India to serve as a regional base in the air for the past one year, the Andhra Pradesh Government now says it is the approval by the company board later this month which is holding up the project announcement.

The India project team leader of Volkswagen, Dr Helmut Schuster, and Mr Ashok Jain, consultant for the company for India operations, today met both the Chief Minister, Dr Y.S. Rajasekhara Reddy, and the State Major Industries Minister, Mr Botsa Satyanarayana, accompanied by senior officials of the Government.

"There are couple of issues that the company wants to be sorted out before the board meeting slated for middle of this month. However, it would not be appropriate to highlight the issues they wanted to be clarified," Mr Satyanarayana told reporters after meeting the German teamat the Secretariat.Mr Satyanarayana said, "The company was being wooed by several States with various incentives. However, we are certain that the carmaker will locate their 1 billion Euros (about Rs 6,000 crore) plant at the port city of Visakhapatnam. This will fit well into the proposed special economic zone in the State."

The 300-acre site opposite the Visakhapatnam Steel Plant has been earmarked and the company has approved of the spot during an earlier visit. The board meeting of the company slated for middle of this month is awaited for the project clearance, he said.

The German team sought clarification about the security in the region chosen for the proposed car plant and enquired about the impact of tsunami on the area. They were shown photographs and assured that it was a safe place, the Minister said.

The German team, however, did not wish to talk to the media.