Business Daily from THE HINDU group of publications Wednesday, Nov 22, 2006 ePaper |
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Government
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Politics Volkswagen runs over a political career in AP Ch. R.S. Sarma
Mr Satyanarayana and his wife are now left explaining the disappearance of the German car unit, which has gone to Pune instead of Vizag.
Vizianagaram , Nov. 21 A curious drama is unfolding in the Bobbili parliamentary constituency of Vizianagaram district: A German car is threatening to run over a local politician's future and ambitions. The by-election to the Bobbili Lok Sabha seat was necessitated by the death of the sitting member, Mr K. Pyditalli Naidu, of the Telugu Desam. The TDP has fielded his son, Mr K. Appala Naidu, a doctor by profession. The Congress has fielded Ms B. Jhansilakshmi, wife of Mr B. Satyanarayana, the State Marketing Minister. At present, she is the Chairperson of the Vizianagaram Zilla Parishad. The by-election is to be held on December 4.
VOLKSWAGEN JOLT
With 15-20 days to go for the election, Volkswagen finally announced this week that it would be setting up the car manufacturing unit in the vicinity of Pune and that it had bypassed Visakhapatnam. The announcement could not have come at a better time for the Telugu Desam and a worse one for the Congress. Since then, life has become difficult for Mr Satyanarayana, who was the Heavy Industries Minister when the negotiations with Volkswagen were conducted, and the TDP leaders are gunning for him. To trace the history of the Volkswagen drama, the negotiations with the German company began during the last phase of Mr Chandrababu Naidu's tenure and he used to claim with a great deal of confidence that the company would set up the unit in Vizag. But he lost power and the Congress assumed charge in the State two-and-a-half years ago. Mr B. Satyanarayana, representing Cheepurupalli constituency in Vizianagaram district, was appointed the Minister for Heavy Industries and from then on he negotiated with the German company. He visited Germany with a delegation and he used to claim often that it was only a matter of time before the German company would announce its decision to set up the unit at Vizag.
THINGS GO WRONG
But things went wrong for him and it became apparent that Volkswagen was backing out, though the company did not announce its final decision, and Mr Satyanarayana had to explain the rationale of paying Rs 12 crore to an intermediary, Vasisht Wahan, in the deal. There was an outcry and the Telugu Desam urged the Chief Minister, Dr Y.S. Rajasekhara Reddy, to sack the Minister, but he did not oblige. He was shifted him from Heavy Industry to Marketing and after that the Congress Government tried its best to salvage the deal, but in vain. Mr Satyanarayana and his wife are now left explaining the disappearance of the German car unit, which has gone to Pune instead of Vizag, and the cash. The task is obviously no cakewalk for them.
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