Tamil Nadu has conveyed to Andhra Pradesh that it has not been in touch with South Korea's Kia Motors regarding the possibility of moving a plant out of Andhra's Anantapur district, said Chief Minister YS Jaganmohan Reddy Office on Wednesday.
"Tamil Nadu government reaches out to Andhra Pradesh govt as their principal secretary industries called up his counterpart in AP and conveyed that the Tamil Nadu government has not been in touch with Kia, and has never discussed it. Further, the Tamil Nadu government and govt of AP have a good relationship," Chief Minister's Office said in a statement.
The government's clarification comes after a media report, which said that Kia Motors is planning to shift its plant out of the Andhra Pradesh.
According to the report, South Korea's Kia Motors is discussing with Tamil Nadu the possibility of moving a plant out of neighboring Andhra Pradesh only months after it fully opened.
The Andhra Pradesh government had signed its first agreement with Kia Motors in April 2017 after which the construction of the plant began in November 2017.
Chief Minister YS Jagan Mohan Reddy-led government has also denied reports of Kia Motors shifting from the state.
Rajath Bhargava, Special Chief Secretary, Industries, Investments and Commerce, Andhra Pradesh earlier in the day said, "News report of Kia Motors shifting from Andhra Pradesh is not true. KIA and the state government are working together."
( With inputs from ANI )