 | « Back to article | Print this article |
"For the time being, we are only talking to the government of Andhra Pradesh," Frank said while replying to a query on whether the company is in touch with any other state government for its proposed India plans.
Elbe who arrived in Hyderabad on Sunday met chief minister Y S Rajasekhara Reddy at the state secretariat. Soon after the 45-minute long meeting, Rajasekhara Reddy and Frank Elbe jointly addressed a press conference.
Elbe came to meet the chief minister as part of the company's confidence-building efforts in the wake of alleged scam involving company's former India operative Helmuth Schuster.
While the chief minister reaffirmed his government's proactive support for the Volkswagen's project in Andhra Pradesh, Elbe clarified that the invitation extended to AP team to visit the company headquarters in Germany was to talk about the 'Andhra project' and not in connection with the ongoing investigation into the alleged shady deals of Helmuth Schuster.
"My visit to Hyderabad is meant to confirm our strong intention to enter the Indian market and to clarify that at present Volkswagen has put the project temporarily on hold due to unfortunate incidents involving illegal dealings of Schuster," Elbe said in his initial remarks.
He indicated Andhra Pradesh as the possible location for the India project when reporters insisted on a more specific response with regard to the company's plans.
When reminded of the CBI probe being ordered into the episode, Elbe said it was not a matter of concern for them.
To a question on whether the company would continue to keep 'Vasishta Wahan' for the implementation of India project or directly deal with the Andhra Pradesh government, he said that the matter had to be negotiated.
He reiterated the company's commitment to compensate Rs 11 crore paid into the account of 'Vasishta Wahan' by the state government.
Reddy said that Elbe's visit has removed the air of suspicion with regard to the proposed car manufacturing project in Vizag. "We felt quite satisfied with the visit and interaction of Frank Elbe and by and large he has confirmed what the Volkswagen chairman recently wrote to me on the future of the project among other things," he said.
Besides requesting the Andhra Pradesh government to put behind the incidents that caused considerable embarrassment, Elbe explained to the chief minister about the irregularities committed by Schuster along with other two people in the company and also the efforts taken by German Chancellor Gerard Schroeder in setting things right in the German industry, officials said.
During the meeting, state officials explained about the concessions offered to Volkswagen to set up the project in Vizag.
"He brought all the correspondence and information along with him to give little scope for any clarification on our part," an official told Business Standard.
Frank Elbe is expected to meet Prime Minister Manmohan Singh and Union finance minister P Chidambaram during his three-day stay at New Delhi from August 3-5, 2005.
Meanwhile, the present German ambassador to India along with the members of Indo-German Chamber of Commerce and Trade is also expected to visit the state next week.
