South Korean conglomerate LG Electronics will be setting up its manufacturing facility in Sri City, Andhra Pradesh with an investment of Rs 5,000 crore. The stone-laying ceremony is scheduled for May 8. The facility, spread across 247 acres, will manufacture refrigerators, air conditioners and washing machines and components like compressors, motor compressor and a heat exchanger manufacturing facility.
Production is expected to begin by December 2026. The investment, largest such investment in South India, is expected to create 1,495 direct jobs and about 10,000 indirect jobs. This is also the first such large manufacturing complex under the state government’s manufacturing policy.
Four suppliers of LG Electronics are also coming to India for first time and have confirmed an investment of Rs 839 crore in Sri City.
The company is expected to complete the total investment of more than Rs 5,000 crore within four years. As part of the incentives under the manufacturing policy, the state has waived off stamp duty and registration fee, has offered a 100% subsidy for water consumption for 20 years, SGST refund on construction work, 100% exemption from electricity duty for 20 years, 50 percent subsidy for electricity tariff for 20 years, Rs 6,000 per month per worker for skilling subsidy for five years.
Several departments, such as power, water resources, , land etc have been instructed to move swiftly for speedy implementation of the project.
A senior level officer will be handholding the company for all inputs required for speedy implementation of the project. A special, single desk clearance process has been implemented for speedy implementation.
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