Finance Minister Rajendranath Reddy gives Kia credit to YSR, cites CEO letter to CM Jagan

Kia Motors CEO and president Han-Woo Park says YSR, when he was CM, had requested him to invest in an automobile factory in AP.
Faormer Chief Minister N Chandrababu Naidu and Finance and Legislative Affairs Minister Buggana Rajendranath Reddy
Faormer Chief Minister N Chandrababu Naidu and Finance and Legislative Affairs Minister Buggana Rajendranath Reddy

VIJAYAWADA: Stating that the previous State government had spent Rs 38 crore on the foreign tours of former Chief Minister N Chandrababu Naidu, his ministers and consultants, Finance and Legislative Affairs Minister Buggana Rajendranath Reddy has said the credit for setting up Kia Motors Corporation plant in Anantpaur district goes to former Chief Minister late YS Rajasekhara Reddy.

To prove his point, Rajendranath, during Question Hour in the Assembly on Monday, read out a letter written by CEO and president of Kia Motors Corporation Han-Woo Park, on June 13, 2019, addressing Chief Minister YS Jagan Mohan Reddy. Kia Motors’ name came up during a debate on a question raised by Kakani Govardhan Reddy (YSRC) and others on the expenditure incurred on the foreign tours of Naidu and his Cabinet colleagues during 2014-19 and the benefits received by the State in those visits.

As the TDP members said that the tours ended up in signing of MoUs, which led to Rs 16 lakh crore investment and creation of 30 lakh jobs in the State, the treasury benches tried to take away the credit of Kia Motors setting up its plant in State from the TDP government. “Whenever we ask about investments in the State, you talk about Kia,’’ Buggana said and referred to the letter, to make the point that it was Rajasekhara Reddy who was the reason behind Kia setting up its plant in AP. “The highly respected Reddy surname and your honourable position as CM of the State of AP remind me of old memories dating back to 2007, when I was leading the establishment of the Hyundai Motor R&D Centre (Hyundai Motor India Engineering) in Hyderabad. At that time, I had the pleasure of meeting Dr YS Rajasekhara Reddy, your late father and then CM of AP, who requested me to invest in an automobile factory in the State,’’ Han-Woo Park said in the letter.

The Kia Motors CEO added, “I promised him we will invest in AP if Hyundai Motor Group has plans. I firmly believe that our long-standing relationship played an important role in Kia Motors setting up its first India plant in AP, a member of the Hyundai Motor Group, to open its first India plant in Andhra Pradesh.’’
Han-Woo Park said he has complete faith that Jagan’s business expertise and social awareness will contribute to accelerating economic and social development in the region, thereby honouring the legacy of his late father. Earlier during the debate, Industries Minister Mekapati Goutham Reddy said that the government incurred a total expenditure of Rs 38.83 crore on foreign tours of Naidu, his ministers, officials and consultants between June 2014 and April 2019. “The AP Economic Development Board informed that 16 MoUs were signed, but no project was grounded,’’ he maintained. Initiating the debate, Govardhan Reddy expressed doubts over the foreign tours of Naidu with public money and sought an inquiry by the Centre as the issue involves foreign countries. “The foreign tours did not benefit the State in any manner,’’ he alleged. Goutham Reddy, however, said the Cabinet sub-committee constituted to look into the various irregularities in the previous government was looking into it.

TDP deputy floor leader K Atchannaidu, however, reminded that the industries minister himself, in the State Legislative Council, had given a statement that 5.13 lakh jobs were created in the last three years. Opposition leader N Chandrababu Naidu said every CM in the country undertakes foreign tours to attract investments. “Even the Prime Minister visits foreign countries,’’ he said and added that AP stood top on EoDB rankings.

“I tried hard for getting investments to the State. Now, it is your job to follow-up them and make the State a preferred destination for investors. I had brought Kia Motors with my sincere efforts,’’ Naidu said and added that the government was trying to order inquiries into all his actions — small or big. “Any way, I am ready to face any inquiry,’’ he asserted.At this point, Buggana came up with the letter written by the Kia Motors CEO.

Naidu’s foreign tours
Rs 38.83 crore was spent by the erstwhile TDP government on the foreign tours of Naidu, his ministers, officials and consultants between June 2014 and April 2019
16 MoUs were signed, but no project was grounded, said Industries Minister Mekapati Goutham Reddy, citing APEDA data

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