Jagan Govt's Decision Driving Away Ancillary Units of Kia MotorsA Report in Andhrajyothi alleges that the decisions of the new government are hurting the prospects of Ancillary Units of Kia Motors in Anantapur. After the new government took the charge, APIIC had hiked the rates of the land earmarked for the ancillary units coming up around Kia Motors Plant in Erramanchi village of Anantapur District.

Earlier the TDP Government gave lands for such units at the rate of Six Lakhs per acre but now APIIC hiked the rate to Sixty Lakh Rupees. The Units are shocked by the move and are now eyeing the neighboring Tamil Nadu. They will be setting up their units there and will supply to Kia Motors plant from there itself.

However, experts say that this move will drive away the investments from the State and will also impact the Number One Rank of Andhra Pradesh in Ease of Doing Business. “APIIC need not supply land at 6 Lakh Per Acre since the demand is good. At the same time, 60 Lakhs is too much. They must find a midway in the Pricing before it is too late,” they say.

Kia Motors Plant is beginning its Commercial Production from the first week of August. Chief Minister YS Jagan Mohan Reddy will be the Chief Guest on the first day of the Commercial Production. There will be further demand for lands to set up the ancillary units and so the State Government should take a decision immediately.