The Hindu Business Line : Volkswagen still keen on India project, says emissary

THE German automotive major Volkswagen AG, through its emissary, has said that it is keen to pursue its India project and has invited a team from the Andhra Pradesh Government to hold further discussions.

This development follows talks held by the former German ambassador to India, Mr Frank Elbe, nominated by the Chief Executive Officer of Volkswagen, Mr Bernd Pischetsrieder, with the Chief Minister of Andhra Pradesh, Dr Y.S. Rajasekhara Reddy, and other Government officials on Monday.

Addressing a press conference here on Monday, Mr Elbe and Dr Reddy said that the India car project is on and that it is a matter of sorting out modalities between the car company and the State Government.

The car project and talks on the company's plans for India are independent of the ongoing probe initiated by German authorities on Dr Helmuth Schuster, former member of Skoda Auto board and Volkswagen representative in India, and the CBI probe in India.

The Chief Minister said that the Government is keen to ensure that the car project comes through and the investment of Rs 11 crore in the special purpose vehicle, Vashishta Wahan, is a non-issue.

Mr Elbe echoed the sentiment expressed by the Volkswagen CEO in his recent communication to the State Government. Terming the whole controversy relating to the formation of Vashishta Wahan and the following incidents as unfortunate, he said this is a goodwill and confidence-building exercise between the company and the Government.

"We are interested in Andhra Pradesh and this is the reason I am here to meet the Chief Minister. It is for the investigation authorities to address issues relating to the probe," Mr Elbe said

Volkswagen had temporarily put on hold its Indian car project but remained keen to enter India. The company is now hoping to locate its project in Andhra Pradesh. Mr Elbe will call on the Prime Minister, Dr Manmohan Singh, and apprise him of the developments. A team nominated by the State Government will be designated to visit Germany and pursue the project.

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