The Jagan-led government which is already facing accusations of scaring away investors from Andhra Pradesh, found itself in trouble, when Reuters reported that KIA motors was planning to shift its 1 billion dollar plant from Anantapur to Tamil Nadu. Though the TN government, Andhra government and KIA Motors have denied the news, the issue has turned political in the state.
Emboldened with this latest report, TDP general secretary Nara Lokesh lashed out at the government. Lokesh said, “What wrong did the people of Andhra Pradesh do to deserve this? Why is this even happening?” He said that KIA leaving the state was nothing short of a “death blow” to future prospects of the state.
What wrong did the people of Andhra Pradesh do to deserve this?
— Lokesh Nara (@naralokesh) February 6, 2020
Why is this even happening?
KIA leaving the State is nothing short of a death blow to future prospects.https://t.co/cpnepxfSZp
On Wednesday, Reuters reported that KIA Motors was facing problems in Andhra Pradesh and that the automobile firm through its sister company Hyundai Motors was in “preliminary negotiations” with the Tamil Nadu government to shift out its plant from the state. The report cited a senior government official and two other sources stating that more clarity is expected after a secretary-level meeting next week.
However, both the governments denied the report. Rajat Bhargava, the Special Chief Secretary for Industries and Investments and Commerce in Andhra Pradesh in a press statement said, “The Reuters news is not true. KIA and Govt of AP are working together. We strongly condemn the news.”
YSRCP national secretary V Vijayasai Reddy also dismissed the report about the fallout between the government and KIA Motors, and claimed that both Jagan and KIA share an “excellent” relationship.
“The rumours being spread by some media outlets about KIA Motors shifting its plant out of AP are absolutely false. Our Govt. led by Hon’ble CM YS Jagan garu shares an excellent relationship with KIA and we are fully supportive of their growth plans in AP,” he wrote on Twitter.
The rumours being spread by some media outlets about #KIA Motors shifting its plant out of AP are absolutely false. Our Govt. led by Hon’ble CM YS Jagan garu shares an excellent relationship with KIA and we are fully supportive of their growth plans in AP.
— Vijayasai Reddy V (@VSReddy_MP) February 6, 2020
TNM too spoke with government representatives from Tamil Nadu and Andhra Pradesh, and KIA motors for clarity. Though all three denied the news, one of them speculated that KIA could be facing certain issues from the government and this may have been a bid to exert pressure on Andhra indirectly.
KIA motors was launched in 2019 under the tenure of TDP president N Chandrababu Naidu. KIA had invested Rs 12,900 crore in the manufacturing unit, which is located in Penukonda, Anantapur.