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Wednesday, November 05 1997

Skoda delegation to visit Shendre on November 7

OUR INFRASTRUCTURE BUREAU

MUMBAI, Nov 4: Robert Buckelhofer, director (sales), of the Czech-based Skoda will visit Shendre, Ranjangaon and Chakan on November 7. Buckelhofer will lead a five-member delegation to hold talks with state government officials on various concessions offered to Skoda for its proposed car project. German carmaker Volkswagen, which owns Skoda, is setting up a car plant in Maharashtra.

Sources told The Financial Express on Tuesday that the government offered to name Shendre industrial estate after Volkswagen. Skoda officials apparently liked the idea and have expressed their desire to visit the site. Meanwhile, the state government has assured 25 per cent more incentives to Skoda if it chooses Shendre, near Aurangabad, instead of Ranjangaon in Pune district.

These concessions include a 17-year sales tax rebate, exemption from electricity charges and assured power and water supply. Deputy chief minister Gopinath Munde disclosed this at a press conference on Monday after his 15-day visit to Europe, which included Italy, France, Germany and London. A letter of intent has already been signed between Skoda and the government to manufacture 60,000 -- 80,000 cars.

The company plans to invest Rs 1,100 crore. Munde said the company had shortlisted Shendre and Ranjangaon after evaluation of various sites offered to them. ``Skoda will further review the viability of Shendre over the next two months taking into consideration vital project parameters including infrastructure,'' he added. The company would set up its base there if found viable, Munde said.

Meanwhile, the Italian major Fiat has zeroed in on Ranjangaon for its Rs 1,000 crore project, according to Munde.

He added that the state government would sign a memorandum of understanding with Fiat within the next 10 days. Munde said that the state government had requested the British department for trade, energy and industry to provide assistance upto Rs 1,000 crore for the improvement of transmission and distribution system in Maharashtra.

He said British officials would visit the state in December and hold talks with the Maharashtra State Electricity Board. Munde said the government has also sought aid from the French government undertaking, EDF, for the modernisation of existing power generation plants and for setting up hydel power generation plants in the state.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

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