Our Bureau

Hyderabad, Oct. 12

A TWO-MEMBER legal team, led by Mr Alfred Strohlein, from the German car major Volkswagen (VW) is arriving here on Thursday to discuss and possibly finalise a pact with regard to setting up a manufacturing facility in Andhra Pradesh.

Official sources said the VW team would have discussions with the officials of the State Ministry of Industries on various issues relating to the proposed `greenfield' project.

It would also discuss the CBI probe into the flow of Andhra Pradesh Government funds into Vasistha Wahan, a company created by VW's former India project head Dr Helmuth Schuster.

The sources said the agenda would also include a proposal to change the site from Visakhapatnam to Tada in Nellore district.

The company representatives reportedly felt that Visakhapatnam would not gel well with its plans due to poor air connectivity. The thinking was that it should be able to send its officials there when required.

Tada suited well in the scheme of things as it was very near to Chennai. Besides having international air connectivity, Chennai was also known for its strengths in auto support industries.

Meanwhile, the CBI sleuths probing the case of Rs 11.7-crore money given by the State Government claimed further progress. The investigating agency produced Ms Gayatri Rai in connection with the case before the Metropolitan Judge of a local court, here on Tuesday. She has been sent to judicial custody till October 25.

She was arrested in Chennai on Monday, according to reports.

(This article was published in the Business Line print edition dated October 13, 2005)
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