VIJAYAWADA: The Andhra Pradesh Government on Thursday condemned a report that KIA Automobile plant, located in Anantapur district, will be shifted to neighbouring Tamil Nadu and termed it not only irresponsible but also deliberately intended to mislead the people. The Tamil Nadu government has also reached out to the Andhra Pradesh government to clarify that it was not in touch with Kia Motors.
Taking strong objection to the report, Finance Minister Buggana Rajendranath said it is high time action is taken against such damaging reportage and quoted Manohar Bhat, Kia's India Head (marketing and sales) as saying that the report published by Reuters news agency was the worst form of imagination and concoction. "It is high time some action is taken against this kind of mischevious and damaging reporting," the Finance Minister said.
The Reuters report claimed that Kia Motors is in talks with Tamil Nadu to explore the possibility of moving its $ 1.1 billion plant in Anantapur due to policy changes. The Kia plant was inaugurated in December last and Chief Minister YS Jagan Mohan Reddy was invited for the same. Recalling the same, Buggana said at the time, Kia officials expressed happiness over the State government's cooperation and the Chief Minister accepted their request for an underpass road for smooth transportation.
Sources in the Chief Minister's Office also said the Chief Minister earlier in the day spoke to Kia officials to clear the air. It is a planted and motivated report intended to malign the government, the sources said.
The Reuters report itself had a statement from KIA that it has a long-term commitment to the Indian market and it aims to utilize the full capacity of its Andhra plant ‘before considering further expansion. “We do not have any plans to shift the manufacturing capacity from the current location,” Kia said. Pointing at the statement, Buggana wondered how could then it be construed that the company is in talks to shift the plant to Tamil Nadu.
Meanwhile, sources told TNIE that Tamil Nadu industries department principal secretary called up his AP counterpart and conveyed that the Tamil Nadu government had never held discussions with Kia Motors as reported by Reuters.
The South Korean Automobile giant's Anantapur Plant has a manufacturing capacity of 3 lakh units and is also reportedly planning to manufacture electric cars at the plan after five years. The State government and Kia had signed the agreement to set up the plant in 2017. During the inauguration of the plant, the State government had said that Kia has employed 80 per cent locals at the plant in line with the legislation enacted last year that industries must give 75 per cent jobs to locals in the State.