The state government has sent a letter to Volkswagen AG of Germany on Tuesday reaffirming its commitment to the company’s India project proposed to be set up in Andhra Pradesh, notwithstanding the money payment scam involving Helmuth Schuster, the then project head.
In a letter written to Detlif Wittig, executive vice-president of VW, who is also named as the successor of Schuster as the India project head, Laxmi Parthasarathy, principal secretary, industries department, explained about the previous interactions between the state government and the company and its project head in India during the past three years in connection with the proposed project.
She also reminded him that along with Andhra Pradesh many other states had held discussions with Schuster to locate the proposed project in their states. Parthasarathy also acknowledged through the letter that all the copies of correspondence between Schuster and the state government were being sent to the company headquarters.
Earlier in the day, finance minister K Rosaiah said that the state team would leave for Germany as soon as the appointment with the chief executive of Volkswagen is finalised.
As was announced, the state government has written to the Government of India requesting for instituting a CBI inquiry into the payment of Rs 11 crore to Vasishta Wahan, supposedly Volkswagen’s nominee, and subsequent transfer of the money to unknown accounts, official sources said.
AP govt writes to VW
Our Regional Bureau / Hyderabad Jul 21, 2005, 02:28 IST