Andhra Pradesh has scored a big win with South Korea’s Hwaseung Footwear deciding to set up a massive non leather footwear factory in Kuppam, Andhra Pradesh which was supposed to be built in Tamil Nadu.
The company supplies major brands like Adidas and other and now plans to invest ₹898 crore (~$100 Million) in a new manufacturing campus in Chittoor district.
The State Investment Promotion Board has cleared the proposal. The project will be built on a 100 acre industrial site in Pogurupalle village which puts Kuppam on the map as a rising footwear production hub.
The plant will be developed in three phases with ₹309 crore in Phase I then ₹299 crore (~$35 Million) and ₹292 crore (~$33 Million) in the next two phases.
This move is expected to change the economic landscape of the region. The company is likely to create nearly 17,645 direct jobs which will support families in Kuppam and nearby towns.
To seal the investment the State government has offered a customised incentive package that includes 30% investment subsidy capped at ₹299 crore along with employment support local procurement support 10 year power tariff reimbursement full exemption on stamp duty and registration fees and a decarbonisation subsidy to encourage green manufacturing.
According to The Hindu, this project was first planned for Tamil Nadu but later shifted to Andhra Pradesh. The change has sparked political debate in Tamil Nadu.
Tamil Nadu’s Industries Minister T R B Rajaa had earlier spoken about a ₹1,720 crore (~$195 Million) commitment from Hwaseung but the company moved out within three months.
Responding to this Rajaa said Tamil Nadu will not enter a race where States offer unrealistic benefits just to win projects. He added that the focus remains on meaningful skilled jobs and that Tamil Nadu still stands strong as a manufacturing powerhouse.
