The Andhra Pradesh government is busy formulating plans to develop a South Korean city project in the state. As far as the automotive sector of this project is concerned, KIA Motors will most likely be the anchor organization. It will also include some other ancillary companies.
The Korean Association situated in Chennai has signed MoU with the APEDB (Andhra Pradesh Economic Development Board) on behalf of KIA Motors’ Tier 2 and Tier 3 ancillaries. According to APEDB’s CEO, J Krishna Kishore, the signing of this MoU will not only help in gaining visibility across the world but will also be an encouragement for striking more collaborations in the future.
The Korean companies together have formed an association in India and this is what is termed as the Korean Association. The proposal that has been set forth with the signing of the MoU, is to design a united cluster of industries which will also comprise of KIA Motors’Tier 2 and Tier 3 ancillaries.
However, this Korean cluster project will have to abide by the rules and regulations that are laid down by the government of Andhra Pradesh. With the Korean Cluster project, APEDB looks forward to bring in direct investments worth Rs. 10000 crores to the state of AP. It is believed that this investment would actually amount to creating close to 45000 jobs in the state.
A promise of required assistance from the Board along with requisite discussions with the Central Government has been made.
KIA Motors’ plan is to make an investment of $1.1 billion in Andhra Pradesh’s Ananthapur district. The location for the project has been strategically picked such that it would be close to all the major cities of the state as well as the Krishnapatnam port.
N Chandrababu Naidu, the Chief Minister of Andhra Pradesh is busy touring South Korea to encourage other companies to come up with new projects in the state. His idea is to create a Korean industrial hub in AP.