In an attempt to get overseas companies to invest in the state of Andhra Pradesh, the state's chief minister N Chandrababu Naidu has extended support to South Korean companies for setting up their manufacturing base.
As per a PTI report, a ‘South Korean’ city will come up in Andhra Pradesh’s newly formed capital of Amaravati or elsewhere in the state. "We will extend full co-operation and encouragement from the government if you make Andhra Pradesh your second capital and set up industries in a big way. We will develop a South Korean City, on the lines of Busan in your country. We will sign MoUs if you come up with comprehensive proposals and designs," Naidu told a delegation of South Korean industrialists visiting the state.
As is known, in April this year, Kia Motors, the latest global entrant in the India growth story, signed an MoU with Andhra Pradesh to build a new manufacturing facility in Anantapur district. Construction of the new manufacturing facility, and representing approximately a US$1.1 billion (Rs 6,950 crore) investment, will commence in the final quarter of 2017. The manufacturing facility is expected to begin production in the second half of 2019 and produce up to approximately 300,000 units each year.
Highlighting the example of Kia Motors, the chief minister has assured full support to investors in the state. "We share similarities in size and population and we are both blessed with a vast coastline. We are rich in natural resources and I am very interested to collaborate with South Korea.”
He mentioned that even if all the 3,000 South Korean companies came to the state, the ample opportunities in the country will make up for their investment. Adding to the address he said that the state would ensure support in terms of land, water, uninterrupted electricity and incentives.
The report states that the Korean delegation has proposed to bring in a minimum of 30 companies in various sectors – electric steel, logistics, automobile components, heavy equipment manufacturing, ship-building, liquors, medical and marine equipment.