LG to invest ₹5,000cr in Andhra Pradesh, create 11,000+ jobs
What's the story
South Korean conglomerate LG Electronics will set up a manufacturing facility in Sri City, Andhra Pradesh, as per Moneycontrol.
The company will invest ₹5,000 crore for the project. It is expected to generate about 1,495 direct and around 10,000 indirect jobs.
The foundation stone for this new facility will be laid on May 8.
Spread over 247 acres, the plant will manufacture goods like refrigerators, air conditioners, and washing machines.
Operations timeline
Production set to commence by December 2026
LG Electronics aims to begin production at the new facility by December 2026. The investment is the largest of its kind in South India and the first major manufacturing complex under the state's manufacturing policy.
Supplier investments
Four LG Electronics suppliers also investing in India
Apart from LG Electronics' investment, four of the company's suppliers are also making their India debut with an investment of ₹839 crore.
The total investment is expected to exceed ₹5,000 crore over the next four years.
This move aligns with the state's manufacturing policy incentives, including waiving stamp duty and registration fees among other benefits.
Incentives
State government offers various incentives
The state government has promised several incentives under the manufacturing policy to ease LG Electronics' investment.
These include 100% subsidy on water consumption for 20 years, SGST refund on construction work, exemption from electricity duty and a 50% subsidy for electricity tariff for 20 years, and a skilling subsidy of ₹6,000 per month per worker for five years.
Departments like power and water resources have been asked to fast-track the project's implementation process.