KIA Motors not shifting its car plant from Anantapur, clarifies Minister

Special Chief Secretary Rajath Bhargava says news not true and condemns it; RS MP Vijayasai Reddy says some media outlets spreading falshehood and rumours; Hindupur MP Gorantla Madhav to meet Union Industries Minister today for clarification

KIA Motors and the State government are working together, says Special Chief Secretary Rajath Bhargava.

KIA Motors India Private Limited has no plans to shift its existing car manufacturing facility at Erramanchi village in Anantapur district of Andhra Pradesh, Backward Classes Welfare Minister Malagundla Sankara Narayana has clarified.

A report by a news agency said KIA Motors India, through its sister company Hyundai, was in talks with Tamil Nadu (TN) government officials to shift the factory - that was inaugurated last year in Penukonda Assembly constituency - to some place in TN. When The Hindu contacted the Minister, he said he had talked to KIA Motors officials on Thursday and got a clarification that there was no such proposal.

A political ploy

Member of Parliament Gorantla Madhav representing Hindupur Lok Sabha constituency told The Hindu from Delhi that he will meet Union Industries Minister on Thursday to take up the issue and get a clarification. “Andhra Pradesh government has given so many concessions to KIA and nurtured it like a baby by providing water from Gollapalli Reservoir, close to 600 acres of land and invested in levelling of land etc., At this stage we do not expect the company to shift to another State like a grown up boy,” Mr. Madhav observed.

“The YSRCP government headed by Y.S. Jagan Mohan Reddy had been working towards improving the investment atmosphere in the State. It is just a political ploy by some Opposition leaders to take away the credit from Mr. Jagan Mohan Reddy,” he added.

EVs from same facility

Mr. Sankara Narayana said: “KIA Motors had announced manufacturing of Electric Vehicles (EVs)from this facility and were steadfast on that too and were not looking to shift any of the existing facilities from Andhra Pradesh.” On providing jobs to locals, the company had originally committed to 80 per cent jobs at the time of signing the MoU with A.P. and has been taking all eligible persons for which a skill development centre is being set up.

Meanwhile, Special Chief Secretary, Industries, Investments and Commerce, Rajath Bhargava in a statement said: “The Reuters news is not true. KIA Motors and the Government of A.P. are working together. We strongly condemn the news.”

Rajya Sabha Member V. Vijayasai Reddy in a Tweet said the A.P. government was fully supportive of KIA Motors’ growth plan and shares a great relation with the company. He advised people to ignore the falsehood and rumours being spread by some media outlets.