|Andhra Pradesh is looking to develop a South Korean cluster project in which Kia Motors is likely to be the anchor industry along with a clutch of other ancillary industries in the automotive sector.|
For the project, Andhra Pradesh Economic Development Board signed an MoU with Tier 2 and Tier 3 ancillaries of Kia Motors, which was coordinated by the Korean Association in Chennai.
“This is a very vital step towards global visibility and a great way to carve the path of upcoming collaborations,” J Krishna Kishore, CEO, APEDB, said.
The proposal is to develop an integrated industrial cluster in Andhra Pradesh to be occupied by Korean companies, where ancillaries of Kia Motors will set up units along with its parent.
The Korean Cluster Project will be subject to rules and regulations applicable in Andhra Pradesh.
APEDB hopes to attract direct investment of about ₹10,000 crore to the State through the cluster project. This has the potential to generate around 45,000 jobs, according to APEDB.
The Board agreed to provide necessary assistance, including necessary facilitation by the Centre.
Kia Motors had earlier outlined its plans to invest about $1.1 billion on a Greenfield plant in Anantapur district of Andhra Pradesh. The project is set to come up at a strategic location close to Krishnapatnam port.
AP Chief Minister N Chandrababu Naidu has been touring South Korea, and interacting with some of the companies there to encourage them to set up their projects in AP along with Kia Motors.