August 11, 2016
Chennai: Tamil Nadu government has offered a chunk of 390 acres of land to the sister concern of Hyundai Motors to enable it set up a its manufacturing facility.
Kia Motors, the sister concern of Korean automobile major Hyundai, was looking for sites in Tamil Nadu as well as neighboring Andhra Pradesh among other places.
Incidentally, with the presence of two manufacturing units of Hyundai in Sriperumbudur, the sister concern too was looking for space nearby so that it could feel more at home.
In view of this, as Sriperumbudur is already developing into an automobile manufacturing hub, the Korean company may take up the offer of 390 acres of land, close to the two Hyundai plant in Sriperumbudur.
State industry minister MC Sampath informed the state assembly on Thursday that the TN government has offered a piece of 390 acres of land to Kia Motors, that had sought 400 acres to set up a facility. The land is in Sriperumbudur. Hyundai company officials previously informally opined that Tamil Nadu may have locational advantage in that the company already has plants here.
But Kia officials maintained that they were only looking at various sites and that evaluation was still on and no decision was taken.
The industries minister hoped that the Korean company would set up its unit in Tamil Nadu.
“After visiting Tamil Nadu, they asked us about 400 acres of land, and we have offered about 390 acres. I am hopeful that they will set up factory in Tamil Nadu,” he said in the assembly. The minister was responding to a criticism from the DMK benches that industries were moving out of Tamil Nadu and investors were skipping the state.
Intervening, chief minister J Jayalalithaa blasted the DMK and held it responsible for driving industries away.
In fact, it was during the regime of DMK that companies and industries went away from Tamil Nadu, she asserted and quoted figures to declare that investments in Tamil Nadu had grown over the past five years of her rule.
Between April 2011 and March 2016, Tamil Nadu attracted investment of Rs 85,523 crore. Since May 2011 when AIADMK took charge, she said, FDI flows increased by 193.45 per cent in the five year period.