Andhra Pradesh and Tamil Nadu compete for industrial investments
A remark by Chief Minister N Chandrababu Naidu has sparked a challenge from Tamil Nadu's TVK over state investment records.
Andhra Pradesh Chief Minister N Chandrababu Naidu and Tamilaga Vettri Kazhagam (TVK) spokesperson Sathya Kumar have entered a dispute regarding which state can better attract investment and create jobs, according to India Today.
The exchange occurred at the CII Partnership Summit in Visakhapatnam after a reporter asked why Tamil Nadu companies were looking to expand in Andhra Pradesh. Naidu responded to the question by saying, "You want masala. I want results."
Sathya Kumar challenged Andhra Pradesh to compare the two states on projects implemented, investments secured, and jobs created. Kumar stated that generations of skilled workers and entrepreneurs built Tamil Nadu's industrial strength and expressed confidence that Tamil Nadu could attract more investment under Chief Minister Vijay.
Naidu defended his ability to attract investment, noting he has hosted eight of the 31 editions of the CII Partnership Summit. He also addressed criticism regarding an offer of land at one rupee an acre in Visakhapatnam, stating that the state offers more incentives initially and scales them back as the industrial base grows.
The states are currently competing for projects, such as a proposed Rs 2,000 crore manufacturing facility by Brazilian electrical equipment maker WEG. While Andhra Pradesh pitched Kuppam for the project, the company chose Dharmapuri in Tamil Nadu.
In Andhra Pradesh, Kia India announced plans to invest US$2 billion in a new manufacturing unit, which is expected to create about 12,000 jobs. Meanwhile, Tamil Nadu reported that South Korean component suppliers Hwashin and Seoyon have made investment commitments worth Rs 1,370 crore over five years.