The Hindu Business Line : AP Govt `unfazed' by Volkswagen move

If the German carmaker Volkswagen has decided to go to Maharashtra, then another automobile company would come to the State, is how the Andhra Pradesh Government seems to view the latest developments on the greenfield project of the company.

Reacting to media reports that Volkswagen has decided to set up its proposed car manufacturing facility in Chakan near Pune, the Chief Minister, Dr Y.S. Rajasekhara Reddy, told presspersons here on Sunday that for the last two to three months, the Government was getting signals about such a move.

"Even if Volkswagen pulls out, we are confident that another automotive company will come forward to set up a unit in Andhra Pradesh," he said. The Chief Minister had taken a strong view over the reported moves by the company to consider alternative sites, after signing an MoU with Andhra Pradesh and the State having offered a clutch of incentives and sent officials to meet the top brass of the carmaker.

The German carmaker has reportedly decided at its board meeting that the greenfield project would be set up in Maharashtra. The $300-million manufacturing facility will be for making small passenger cars and is expected to commence production in 2009. Incidentally, Skoda also has its manufacturing base in Aurangabad in Maharashtra.

Meanwhile, the Marketing Minister, Mr Botsa Satyanarayana, who handled the major industries portfolio when the Government signed a memorandum of understanding with Volkswagen and was in the eye of the storm over the Rs 11-crore scam, said the company had not made up its mind yet as far as he knew.

The Opposition Telugu Desam Party, the BJP and the Left Parties also raised several issues over the German automotive company deciding to move to Maharashtra and the failure of the State Government to clinch the deal.

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