Kia Motors Corporation signed a Memorandum of Understanding (MoU) with Andhra Pradesh government last week for setting up a car manufacturing plant in Anantapur district. It was contemplating on Tamil Nadu, Gujarat and Sri City in AP as possible locations. With the incentives given by the AP state government, it picked Anantapur. On the contrary, a facebook post is doing rounds in social media alleging that Tamil Nadu politicians asked huge amount of bribe to allow Kia Motors enter their state. Kannan Ramasamy whose profile indicates him as managing director at Infratech Infrastructure Services of Chennai wrote the following post where he gives further details –
“I am writing this post with pain in my heart and I am really scared where TN will go if this situation continues.
South Korea based Automobile Manufacturer Kia Motors, a subsidiary company of Hyundai wanted to start their manufacturing plant in India to make compact Sedans and compact SUVs.
As part of their local consultants, our team made a detailed study and recommended Tamil Nadu as first choice, Gujarat as the second choice and Sri City (AP) as third choice.
They approached TN Industries Secretary & SIPCOT and SIPCOT has enough lands to give at Oragadam Complex.
The TN politicians demanded 50% more than the official cost of the land as bribe.
Kia demanded Tax Holiday and Power Tariff Concessions and the connected infrastructure like Roads, water, drainage, fast track approvals etc.
They wanted a very huge bribe for the same apart from the land.
We had also arranged a huge array of more than 70 Ancillary units (From S.Korea and India) who have to start their production for the supply to Kia to have their plants nearby.
Unfortunately Kia Management has decided to move to AP (not to Sri City) – Anantapur District which is a dry and under developed area.
AP CM CBN could convince them with lots of concessions to bring them to Anantapur District. He has also promised 200 ft highway roads to connect the plant to Bengaluru Mumbai / Bengaluru Hyderabad Highway.
Our team spent more than 2 years and extended very hard work to convince them to come to Tamil Nadu and local Hyundai team also extended all the help locally for logistics etc.
If the TN Govt continues like this, then TN will be relegated to back bench very soon.
Though I was against President Rule concept earlier, now I am feeling that 6 months of President Rule in TN is the bitter medicine that is required to treat the chronic illness called High Level Corruption.
TN has not only lost the 1.1. Billion USD from Kia but also the allied ancillary investments of more than the Kia figure.
More than that, huge employment opportunity is lost for the TN Youth and auto professionals.
I hang my head in shame.
Let God help TN to spring back.”
