A war of words ensued between the Tamil Nadu government and opposition parties after Korean shoe manufacturer Hwaseung Enterprises inked a deal to set up a manufacturing plant in Andhra Pradesh. Hwaseung’s plant was initially projected to come up in Tamil Nadu.
Hwaseung decided to sign a Memorandum of Understanding with the Andhra Pradesh government at the Confederation of Indian Industry Partnership summit held in Vishakhapattanam on November 14 and 15. In August, it had been announced that the company would set up a manufacturing plant in Tamil Nadu, investing Rs 1,720 crore and creating 20,000 direct jobs.
Reacting to the news, AIADMK chief Edappadi K Palaniswami said that the move illustrated incompetence on the part of the DMK-led government in Tamil Nadu. He also alleged corruption and commission scams.
“Tamil Nadu was a land of opportunities for industries. Today, it’s a land of missed chances. What is the benefit of the Chief Minister travelling to foreign countries and conducting investor conferences for four years?” he asked.
Former BJP state president K Annamalai also criticised the government, saying, “While the Tamil Nadu Chief Minister and Industries Minister are in deep slumber, the investments that they proudly announced are moving to neighbouring states.”
Meanwhile, Industries Minister TRB Raaja said that the issue of investment was about balancing the state’s needs. “Investment promotion is not a regular everyday game. It’s about balancing the state’s need for certain sectors, the jobs that will get created, incentives being given according to the area in which the investment is anchored, etc.”
Raaja added, “We will also at no point join a race to the bottom when it comes to offering unrealistic packages. Tamil Nadu is focused on the specific value of jobs in different areas based on the availability of different types of skills of our labour.”
Reacting to the online exchange, Head of the India & South Asia Team at the Korea Institute for International Economic Policy (KIEP) Kyunghoon Kim said, “Industrial policies must be precisely targeted, with resources allocated carefully.” He said that from this lens, it was the states that choose the industries and not the industries picking where to invest.