Financial Daily from THE HINDU group of publications
Monday, Aug 01, 2005

Port Info

Group Sites

Industry & Economy - Foreign Direct Investment

Volkswagen envoy to hold talks with YSR, officials

Our Bureau

Hyderabad , July 31

A SPECIAL envoy of German carmaker Volkswagen AG is in Hyderabad to hold parleys with the State Chief Minister, Dr Y.S. Rajashekhara Reddy, and other officials.

Mr Frank Elbe, former ambassador to India during 90's, was nominated by the Volkswagen Chief Executive Officer, Mr Barnd Pischetsrieder, to serve as the company's envoy and the same was intimated to the Chief Minister earlier last week.

On Saturday, the State Government had received communication from Indian ambassador in Berlin, Mr T.C.A. Rangachary, conveying that the former German ambassador would call on the Chief Minister and also finalise plans for a possible interaction with the CEO of the company and fix a mutually convenient date for further talks.

In the recent communication to the State Government, Volkswagen has said that though the company has temporarily put on hold the car plant, it is very keen on entering the Indian car market.

This was first such communication by the company CEO to the State Government over the last four years since negotiations for the car project were initiated.

Earlier this year, the member of the Skoda Board and head of the India project for Volkswagen, Dr Helmuth Schuster, allegedly involved in certain controversial deals, resigned in June and an inquiry has since been instituted against him.

While the German car maker, owning responsibility for Dr Schuster's actions, has agreed to make good the amount of about two million euros deposited by the State Government in Vashishta Wahan, the Special Purpose vehicle, formed for the Indian project, it is still not clear as to where the funds have been siphoned off.

The ongoing probe also seeks to track the fund flow.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Banks, stock markets to remain open in Mumbai despite rains

Another rain alert in Mumbai
Ammonia movement by FACT — Greens see red
Formulate action plan on export potential in Africa, says FICCI
`This is the first airport with a long-term master plan'
TN keen on private role in core sector
KSFE to sell National Insurance products
Govt to cut guarantee fee on loans raised by PSUs
Energy co-ordination panel to meet on Aug 6
Natural gas sector may be treated separately under proposed panel
Gas trouble
Power sector achieved 7.5 pc growth: Sayeed
Power generation resumes in Srisailam hydroelectric units
CERC rejects Reliance Energy plan to execute transmission project
HC asks TN to amend General Sales Tax Act
SIMA hails move to drop Textile Committee cess
Help centre for AP small industries
How about a right to communicate?
Apollo dental centre opened at Banjara Hills
Grundfos facility gets Gold rating from US council
Leather goods exports clock 6 pc growth in 2004-05
Avinash Chander to take charge
Gurgaon incident won't impact FDI inflows, say MNC chiefs
Volkswagen envoy to hold talks with YSR, officials
NGOs in Karnataka mid-day meal scheme
Rural business hubs to be set up
Vanaspati units oppose imports from Sri Lanka
Frustrating battle for Mumbaikars
Bajaj Allianz gears up for claims deluge
Mumbai pays for neglecting Mithi river
`Publicise open-sky policy info on time'

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line