The Hindu Business Line : Volkswagen team holds talks with AP officials

Ms Lakshmi Parthasarathy, Principal Secretary, Industries Department, Andhra Pradesh, said the visit of the German team strengthens the State's claims to get the project.

Hyderabad , Oct. 13

A HIGH-level team from Volkswagen and officials of the State Government held a marathon, six-hour discussion on Thursday on the German car company's proposed `Greenfield' India project.

"The discussions were fruitful and will be continued tomorrow," was how Ms Lakshmi Parthasarathy, Principal Secretary, Industries Department, AP, and a key official described the talks.

Earlier in the day a four-member team from Volkswagen, including its Head of Finance, Mr Patrick Mayer, arrived in Hyderabad to hold detailed discussions with AP officials on the possible location and legal issues surrounding the project.

The other members include the attorney, Mr Alfred Strohlein, Mr Peter Walters and Mr Huber.

The feasibility of locating the project at Tada, in Nellore, was also discussed, according to sources; Visakhapatnam was the site proposed by the State Government.

The meeting centred on the contents of a possible memorandum of understanding, the pros and cons of the two sites, the legal hassles surrounding the Rs 11.7-crore payments made by the State Government to Vasishta Wahan, and the CBI probe ordered by the AP Government.

Ms Parthasarathy said the visit of the German team strengthens AP's claims to get the project.

It is also significant, as it is the first major team coming from Volkswagen after the Helmuth Schuster episode.

She said that the State Government preferred Visakhapatnam for the Volkswagen project, since it has a Special Economic Zone (SEZ), and is a place for planned development.

Also, the Gangavaram port has achieved financial closure recently.

A delegation from the State Government is expected to follow up with a visit to Germany soon.

The feasibility of Tada, which is closer to Chennai and provides faster air access, has also attracted the German company.

But the SEZ status and other incentives that need to be put in place have to be sorted out.

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