Home World Business Kia to ink pact with Andhra Pradesh govt for setting up manufacturing...

Kia to ink pact with Andhra Pradesh govt for setting up manufacturing unit

1
0
SHARE

State officials had worked patiently for over a year to make this happen

BS Reporter  |  Hyderabad  April 18, 2017 Last Updated at 01:45 IST

South Korea’s second largest carmaker, Motors, will end its five-year evaluation on India entry when the company signs a memorandum of understanding (MoU) with the (AP) government later this month for setting up a factory.


State officials had worked patiently for over a year to make this happen. and the AP government have moved swiftly on the follow-up action after a final decision was taken.


The state government had issued orders for acquisition of 600 acres for the proposed hub just a day after Kia’s team met chief minister N on April 12. The government proceeded with the acquisition only after officials were satisfied with the site, after making two-three visits to Penukonda in Anantapur district, sources said. 


The site is located on national highway around 120 km from Bengaluru.


Senior officials of the Andhra industries department had begun working with Motors over a year ago after they first established communication with senior executives of Hyundai India, who were doing the initial ground work on behalf of its sister concern. 


Later, they quickly established contacts with Kia’s leadership in Seoul to directly explain the incentives and other advantages the company can have if it chooses to put up its plant in AP. 


They eventually started discussions with the company on the incentives and  other facilities the company was looking for. Coming to incentives, sky is the limit for mega projects in AP as it promises reimbursement of sales tax one-two times of the capex made on the plant and machinery, power supply at concessional rates among several other incentives.


Kia to ink pact with Andhra Pradesh govt for setting up manufacturing unit

State officials had worked patiently for over a year to make this happen

State officials had worked patiently for over a year to make this happen

South Korea’s second largest carmaker, Motors, will end its five-year evaluation on India entry when the company signs a memorandum of understanding (MoU) with the (AP) government later this month for setting up a factory.


State officials had worked patiently for over a year to make this happen. and the AP government have moved swiftly on the follow-up action after a final decision was taken.


The state government had issued orders for acquisition of 600 acres for the proposed hub just a day after Kia’s team met chief minister N on April 12. The government proceeded with the acquisition only after officials were satisfied with the site, after making two-three visits to Penukonda in Anantapur district, sources said. 


The site is located on national highway around 120 km from Bengaluru.


Senior officials of the Andhra industries department had begun working with Motors over a year ago after they first established communication with senior executives of Hyundai India, who were doing the initial ground work on behalf of its sister concern. 


Later, they quickly established contacts with Kia’s leadership in Seoul to directly explain the incentives and other advantages the company can have if it chooses to put up its plant in AP. 


They eventually started discussions with the company on the incentives and  other facilities the company was looking for. Coming to incentives, sky is the limit for mega projects in AP as it promises reimbursement of sales tax one-two times of the capex made on the plant and machinery, power supply at concessional rates among several other incentives.


image

BS Reporter

Business Standard

http://bsmedia.business-standard.com/_media/bs/wap/images/bs_logo_amp.png 177 22

LEAVE A REPLY

Please enter your comment!
Please enter your name here