The government on Saturday said auto major Volkswagen had proposed to set up an engine assembly unit in the state during the just-concluded Emerging Kerala Meet here.
In a statement, KSIDC executive director T.P. Thomaskutty refuted reports in a section of the media that the auto major had not proposed the unit.
He said the Volkswagen Group India expressed interest in setting up the engine assembly unit either in Kochi or in Thiruvananthapuram.
The proposal sought around three to five acres of land for the facility, with an estimated total investment of Rs 2,000 crore.
The statement said a Volkswagen delegation comprising its executive director Mahesh Kodumudi and external affairs head Pankaj Gupta held discussions with chief minister Oommen Chandy on September 11 and industries minister P.K. Kunhalikutty on September 12 in Kochi.
Thomaskutty told DC that KSIDC would try and get in touch with Volkswagen officials to find out how the statement contradicting the chief minister was made.
He said the project was only at a proposal stage. Respective government departments have been directed to take follow-up action on every project that came up before the Emerging Kerala meet.