The Hindu : Andhra Pradesh News : Volkswagen unit for Vizag soon

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Thursday, Mar 31, 2005

Andhra Pradesh

Andhra Pradesh

Volkswagen unit for Vizag soon

By Our Special Correspondent

HYDERABAD, MARCH 30. The German auto major, Volkswagen-AG, will be setting up a car-making unit in Visakhapatnam in the next one-and-half months, the Major Industries Minister, B. Satyanarayana, informed the Assembly today.

He told A. Vivekananda Reddy (Congress) during question hour that 350 acres was being allotted to the proposed unit which would provide jobs to about 2,000 people and indirect employment to 3,000 others. Besides, the ancillaries were expected to create 5,000 more jobs.

Concessions

He said the Government was offering many concessions to the auto major and the negotiations were in the final stage. Besides cars, it would be making light commercial and other vehicles. The unit could be counted among the achievements of the Government at its first anniversary.

The Minister was hopeful that Mahindra & Mahindra, which was holding discussions with the Government for establishing a small car-manufacturing unit, would establish it in the State.

Leather park

A Rs.200-crore leather park would be coming up at Krishnapatnam, in Nellore district.

Replying to a question, Mr. Satyanarayana told P. Srinivasulu Reddy (Congress) that 2,776.23 acres of land, which was handed over to IFFCO for establishing ammonia/urea factory at Ragadichilika, in Nellore district, was lying vacant. He said the Centre has accorded in-principle clearance for the project in 1999, subject to appraisal by the Project Clearance Board. The proposal was pending with the Centre. He promised that the Government would ensure that the IFFCO plant was established.

Apparel park

The Rural Development Minister, D. Srinivas, informed K. Prathap Reddy, that a mini textile mill and an integrated apparel and textile park would be coming up at Warangal. Stating that there was no move to revive the Azam Jahi Mill, he described the proposed projects as an alternative for it. The Housing Board would be developing the infrastructure and the residential facilities for the mill which is expected to provide employment to 1,000 people and generate exports worth Rs. 20 crores. The National Textiles Corporation would be handing over 65.69 acres to the Board in a week or 10 days. The integrated apparel and textile park, being set up with an investment of Rs. 390 crores, was expected to create 20,000 jobs.

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