Andhra Pradesh keen to develop Korean cluster project with KIA Motors as anchor

Hyderabad, Dec 6

Andhra Pradesh is seeking to develop a South Korean City project in Andhra Pradesh where KIA Motors is likely to be the anchor industry along with a clutch of other ancillary industries in the automotive sector.

The Andhra Pradesh Economic Development Board has signed an MoU with Tier-2 and Tier-3 ancillaries of KIA Motors, referred to as the Korean Association in Chennai, for the project.

“This is a very vital step towards global visibility and also a great way to carve the path for upcoming collaborations,” J Krishna Kishore, CEO, APEDB, said.

The Korean Association in Chennai is an association of Korean companies. The proposal is to develop an integrated industrial cluster in the state to be occupied by Korean companies, which include Tier-2 and Tier-3 ancillaries of Kia Motors.

The Korean Cluster Project is subject to due process and applicable rules and regulations in Andhra Pradesh.

APEDB looks at commitment to bring in direct investment of approximately Rs 10,000 crore to Andhra Pradesh through the Korean Cluster Project. This has the potential to generate employment for approximately 45,000 persons, according to APEDB.

The board has agreed to provide the necessary assistance, including necessary assistance in discussion with the Centre.

KIA Motors had earlier outlined plans to invest about $1.1 billion on a greenfileld plant in Ananthapur district of Andhra Pradesh. The project is set to come up at a strategic location close to Krishnapatnam port and also to major cities.

AP Chief Minister N Chandrababu Naidu has been touring South Korea, interacting with some of the companies there, to encourage them to set up their projects in AP along with KIA Motors, seeking to make it a Korean industrial hub.



Published on December 06, 2017

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