The Hindu Business Line : AP to improve infrastructure for attracting investments: CM

IRKED by poor investment flows into the State in the last 15 years, the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, has said that the Government is working on a three-pronged approach - building quality infrastructure, hassle-free atmosphere and providing power at competitive rates - to attract investments.

As part of this, the Government was planning to extend the 75-paise concession a unit of power for the existing industrial units also. Recently, the Government announced the incentive to the new units in order to attract more investments.

Addressing at the 87th annual function of the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) here on Monday, the Chief Minister said he was shocked to know that investments into the State had dipped from Rs 11,500 crore during 1996-2000 to Rs 4,500 crore in 2001-05.

Two of the reasons were neglect of power sector and poor infrastructure.

He said a separate infrastructure department would work on developing major infrastructure in the State. This cell would also be asked to explore development of more airports. "A big State like Andhra Pradesh has got only three airports. This needs a focus," he said.

The share of manufacturing sector in the State domestic product was as lows as 12.3 per cent as against 20 per cent at national level. The growth of the sector declined from 7.1 per cent in the 1980s to 5.3 per cent in the 1990s.

While 14 per cent of all industrial firms in the country were located in Andhra Pradesh, only six per cent of country's industrial output was produced in the State.

He said the State would revive the Buckingham Canal of the British era. This would open new means of transport.

Later, he presented awards to industries and entrepreneurs for 2003-04.

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