Congress Govt’s plan to offer 750 acres to Korean firm draws flak

People from different sections are questioning the State government's plans to offer 750 acres to the company against an investment of Rs.300 crore.

Hyderabad: Even as the controversy surrounding the involvement of Singapore-based Meinhardt Company in preparation of the Musi riverfront development’s Detailed Project Report (DPR) is still raging, the State government’s plans to offer 750 acres for Korean shoe making firm, Shoealls, is drawing flak.

People from different sections are questioning the State government’s plans to offer 750 acres to the company against an investment of Rs.300 crore. Earlier this week, Industries Minister D Sridhar Babu had announced that Shoealls, which manufactures smart shoes, was keen on investing in a state of the art production centre in Telangana at a cost of Rs.300 crore that can generate employment for around 87,000 people. The Minister had met with the company chairman Cheewing Lee at Secretariat.

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“The land is required for the manufacture of various types of products that provide relief and healing for people with diabetes and arthritis, including shoes with medical chips on the soles, shoes that generate 25 watts of electricity per hour after taking 10,000 steps. We will consider Shoeall’s request on top priority and a decision will be taken shortly. A huge factory will be set up and from here which will cater to the global markets as well as the American market. Tanneries are needed due to the use of animal skins in the manufacture of shoes, and many people will be able to find employment with these ancillary units that will be needed to support the production facility,” Sridhar Babu had said.

This has evoked sharp criticism from different sections. Hyderabad Real Estate and Infra, an X user said: “750 acres seems just too much for a shoe factory and that too for just Rs.300 crore investment. Even employment numbers seem bloated. The Industries Minister’s department should thoroughly verify information before announcing such proposals…”

This apart, the Industries Minister’s announcement that the Korean firm has proposed to set up a smart city, if 5000 acres were allocated, in addition to bringing famous hospitals like John Hopkins, is also drawing flak.

Raising objections over the government’s plans, former Telangana Digital Media Coordinator Konatham Dileep said what was more concerning was the land requirement.

“As per available records, one of the largest factories of Shoealls in Busan, Korea, is built on an area of just half an acre! Then why on earth would they need 750 acres in Telangana? I am attaching the photos of one of their factories,” he said on X, also expressing concerns over the proposal to set up a smart city by the company.

“What’s even more perplexing is their proposal to set up a “smart city” if 5000 acres of land is allocated. Again, this proposal looks very impractical keeping in mind that the company doesn’t seem to have relevant experience and has achieved sales of just about Rs 180 crore last year. For a medium size shoe manufacturing company to execute a smart city project of that magnitude seems like a far-fetched idea,” Dileep stressed, also stating Shoealls was meeting other State governments since the last one year.

“No State government seems to be considering their impractical proposal. For example, they met some officials of Andhra Pradesh Government last year, but the AP Government did not evince much interest,” he pointed out.

“While we all welcome investments into the State, we should also be a little cautious while promising land and sops from the State government,” he added, requesting the Telangana Industries department to do proper due diligence before committing anything to the company.

Dear Sridhar Babu Garu,

I wanted to bring these concerns to your notice after reading your post about the proposed investment of Shoealls, a Korean footwear company.

Shoealls proposal, which involves about Rs 300 Crores investment, will no way be able to provide the whopping… https://t.co/DqObCVWGo7 pic.twitter.com/YRjXKbtQjb

— Konatham Dileep (@KonathamDileep) October 25, 2024