Andhra Pradesh Finance Minister Buggana Rajendranath
Andhra Pradesh Finance Minister Buggana Rajendranath

Andhra ministers dismiss reports about Kia Motors shifting out of state

ANI | Updated: Feb 06, 2020 21:10 IST

Amaravati (Andhra Pradesh) [India], Feb 6 (ANI): Finance Minister Buggana Rajendranath on Thursday dismissed reports of Kia Motors shifting its plant out of Andhra Pradesh.
"The wrong information is being reported that Kia Motors is planning to shift out of Andhra Pradesh. Kia Motors is extremely happy here. The government helps industries, especially manufacturing sector, in every possible way," he said.
Addressing media persons at the State Secretariat, Rajendranath said: "There are some reports on social media that the government has ordered an IT company to vacate its office in the Millennium Towers in Visakhapatnam. No such orders are issued to any company. Such social media posts need to be controlled."
"Kia Motors has denied such reports. In fact, Kia is planning to expand the plant. Kia's Anantapur plant is working with full capacity and bringing cars out into the market. That plant was set up with Rs 14,000 crore investment. Then where is the question of shifting," he asked.
The Minister said the YSRCP government has brought many reforms in the industrial sector in the state. "This publicity about Kia going out of Andhra Pradesh seems to be a smear campaign with a mala fide intention. We think it an intentional propaganda," he added.
Industries Minister Mekapati Goutham Reddy also denied the reports and tweeted: "I strongly deny the news against Kia Motors and Conduent IT in AP. There is no iota of truth in it. They are very much with us. Fake news can only make noise for a short time but can't distill the confidence and faith people have in our government."
This came after a media report surfaced stating that Kia Motors is discussing with Tamil Nadu the possibility of moving a plant out of neighboring Andhra Pradesh only months after it fully opened.
The Andhra Pradesh government had signed its first agreement with Kia Motors in April 2017 after which the construction of the plant began in November 2017. (ANI)