Finance Minister Buggana Rajendranath Reddy on Thursday said there was no truth in the news report that KIA Motors India had plans to shift its car manufacturing plant from Anantapur district in Andhra Pradesh to Tamil Nadu.

He told mediapersons at the Secretariat that the South Korean automobile major was happy with the support extended by the Andhra Pradesh government and that it was bound to grow at a faster pace. It has no necessity to relocate to another State, he said.

Mr. Reddy said the State had a favourable investment climate and that several blue chip companies were keen on foraying into the State. “Unfortunately, some vested interests have spread the rumour that KIA was moving out to Tamil Nadu, to defame the government,” he said.

In a press release, Mr. Rajendranath Reddy said the report was false and action need to be taken against those circulating the fake news.

He quoted KIA Motors’ national head of sales and marketing Manohar Bhatt as saying that he was shocked to see the news report which came at a time when the KIA plant in Andhra Pradesh was doing extremely well.

‘Very much in State’

Minister for Industries and Commerce Mekapati Goutham Reddy denied the news against KIA Motors and Conduent in Andhra Pradesh.

He commented on Twitter that there was no iota of truth in the report and that KIA was very much with Andhra Pradesh. “Fake news can only make noise for a short time but not shake the confidence and faith people have in the government,” he asserted.

‘Baseless’

Special Chief Secretary (industries and commerce) Rajat Bharat clarified that the news report headlined ‘Kia in talks over moving $1.10 billion India plant out of Andhra Pradesh – sources’ cited unnamed sources.

He termed it as a completely baseless story as Andhra Pradesh had a strong partnership with KIA, which had planned to ramp up its production capacity in the State from 200,000 to 300,000 units per annum by the end of this year or early next year.

Mr. Bhargava stated the State was enjoying a cordial relationship with Tamil Nadu and its

Principal Secretary (Industries) had conveyed that there were no discussions between the two parties (T.N. government and KIA).