The Hindu Business Line : Volkswagen team to visit AP for talks

A TEAM from the German automotive major Volkswagen AG is set to visit Hyderabad on October 13-14 to discuss with the State Government their plans and to possibly finalise a memorandum of understanding.

The State Major Industries Minister, Dr J. Geetha Reddy, said the company offered to send its team to Hyderabad since the State was not in a position to go to its headquarters in Germany.

A State team was to go to Germany on September 28. Some of its senior officials are not in a position to undertake journey to Wolfsburg due to the Bihar election duty.

Replying to a debate on the Volkswagen car project and controversial issues surrounding the company, she said the Government was a continuous process and what was initiated by the Mr Naidu Government in 2002 is now being pursued by the Dr Reddy Government.

However, referring to the special purpose vehicle (SPV) Vashishta Wahan, created by the Volkswagen nominated Indian project head, Dr Helmuth Schuster, Dr Geetha Reddy said given the correspondence by the Volkswagen about Mr Schuster's ouster, the Government had instituted a CBI enquiry and the probe is continuing.

Further, she said "if the opposition political parties have any additional information on this issue, they were free to bring to the notice of the CBI."

Meanwhile, the members of the Telugu Desam Party sought the Government view on the payment to the SPV without a memorandum of understanding being signed up and APIIC releasing funds without board approval.

Further, the TDP referring to the Rs 25-crore deal signed up by the caretaker government to procure 50 ambulances said it is wrong to refer to them as ambulances. They were in fact mobile operation theatres.

However, the Government order was released with a rider. Wherein it contained that the deal would be based on the Central Government giving certain tax sops.

Unconvinced with the Government response, the TDP leader and former finance minister, Mr Y. Ramakrishnudu, handed over a list of questions to the Speaker seeking Government stand. These related to how the SPV was created to defraud the State Government interests.

Dr Geetha Reddy said the State dealt with a representative nominated by Volkswagen and that the SPV was created at his behest. She cited a communication by the Volkswagen CEO owning up responsibility for the loss and thereafter, nominating former German ambassador, Mr Frank Elbe to hold talks with the State.

Unconvinced with the Government reply, the TDP members demanding ouster of the former Industries Minister, Mr Botsa Satyanarayan, from the Cabinet, and staged a walk out of the Assembly.

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