Central support to infrastructure crucial for Andhra Pradesh

Rollout of the slew of industrial tax concessions that are due to the State needed

The Union government’s affirmation of its commitment to the development of Andhra Pradesh relies heavily on various infrastructure projects envisaged in the State.

With Finance Minister Arun Jaitley throwing light on them in his much-anticipated press conference on Wednesday, the Government of Andhra Pradesh can look forward to a movement on that front in the near future.

However, what is urgently required is the rollout of the slew of industrial tax concessions that are due to the State under the A.P Reorganization Act, 2014.

As far as Mr. Jaitley’s “action taken report” is concerned, there are three things that are distinctly mentioned as a part of the central assistance being extended to Andhra Pradesh.

The first one is the in-principle approval given by the Cabinet Committee on Economic Affairs for the establishment of a major port at Dugarajapatnam in Nellore district. Development of airports is the other goal that the Union government talked about.

It stated in an official release that the Union government would fully support the expansion of Visakhapatnam airport, which is currently in the hands of the State government. The onus of acquiring land for it at Bhogapuram and getting a techno-economic feasibility report prepared rests on the State government.

Airport expansion

Similarly, the Andhra Pradesh government is expected to acquire 698 acres for expansion of Vijayawada airport, for which a MoU had been signed with the Airports Authority of India (AAI). Expansion of Tirupati airport is under way for commencing international flights.

Clearing of various national highway and railway projects and the progress made in the Visakhapatnam-Chennai Industrial Corridor (VCIC) are considered as positives for the State.

Speaking to The Hindu , CIII vice-chairman (A.P) J.S.R.K. Prasad said infrastructure support from the Union government holds the key to the industrial growth of Andhra Pradesh, which has the resources but falls short of the kind of plug-and-play infra that is required to attract major investments.