| The automobile major which has been scouting for a location to set up a plant in India for close to a year, is finally expected to sign a memorandum of understanding over the next fortnight with the Andhra Pradesh government to set up a plant in the port city of Vizag. |
| The Andhra Pradesh government may end up having a small stake in Indian venture in lieu of land and other facilities that are being offered to Volkswagen AG at concessional rates. |
| The German auto major is expected to invest up to $1.2 billion in the proposed venture, sources connected to the deal told Business Standard. The state government has offered concessional power rates and tax concessions to Volkswagen apart from facilitating all infrastructural related issues. |
| "A team from Volkswagen is expected tomorrow to finalise the details about their investment and signing of an MoU with the state government," B Satyanarayana, Minister for Major Industries, Government of Andhra Pradesh told Business Standard. |
| Volkswagen is being offered up to 300 acres in the port city to set up its plant. |
| "The signing of the MoU is expected to happen in the next couple of weeks. Certain issues related to their joint venture partner are yet to be resolved," sources in the state government told Business Standard. |
| It is still not known whether Volkswagen will bring in completely knocked down kits of its vehicles and prefer to assemble them in Vizag or whether it would set up an integrated manufacturing unit. |
Top Section
Explore Business Standard