Volkswagen will establish a vehicle plant in the port city of Vizag, starting in the next six weeks, The Hindu newspaper reported, citing major industries minister, B Satyanarayana.


The official reportedly said a 350-acre site was being allotted to the proposed plant which would provide jobs for about 2,000 people and indirect employment to 3,000 others. “Ancillaries” were expected to create 5,000 more jobs.


According to the newspaper, Satyanarayana said the government was offering many concessions to the German automaker and negotiations were in the final stage. Besides cars, the plant would build light commercial and other types of vehicles.


The Hindu added that the minister was hopeful that Mahindra & Mahindra, which has been discussing a small car-manufacturing unit with the government, would establish it in Vizag.