Finally Volkswagen AG, the German automotive major, has decided to locate its India plant at port city of Vizag. It is likely to enter into a memorandum of understanding (MOU) with the Andhra Pradesh Government next month.

Ending speculation and also the possibility of the carmaker moving on to locate its India project in neighbouring states of Tamilnadu, a traditional automotive and manufacturing hub, and Karnataka, this comes in as another shot in the arm from the state, which recently bagged the SemIndia project.

Volkswagen is planning to set up a plant at a cost of Rs.5, 400 crores to manufacture cars and light commercial vehicles in the port city

Birla Institute of Technology and Sciences (BITS) will set up its full-fledged campus on 200 acres of land at Jawaharnagar on the city outskirts. The campus, third in the country after Pilani and Goa, will offer all BITS courses and is likely to start functioning from the 2007-2008 academic year.

Official sources said that the government had offered land free to BITS, but the institute preferred to purchase the land at a "concessional" rate fixed by the government. The Chief Minister's Office said that the personal rapport between Dr Y.S. Rajasekhar Reddy and industrialist K.K. Birla, founder of the institute, had helped the State get the prestigious institution. The Chief Minister personally monitored the progress and took initiative to allot land at a concessional rate.

The State government issued orders (GO Ms No 59 MA) on February 16 allocating 200 acres to the institute on payment of Rs 1.5 lakh per acre. Municipal administration and urban development secretary S.P. Singh directed the vice-chairman of Hyderabad Urban Development Authority to allot to BITS, land situated in survey no. 706 in Jawaharnagar village in Shamirpet mandal.

The Chief Minister has written to Mr Birla thanking him for selecting Hyderabad. He invited Mr Birla to attend the groundbreaking ceremony scheduled on Ugadi, the Telugu New Year's Day, on March 30.