Separate infrastructure department on the cards

The Andhra Pradesh government is planning to create a separate infrastructure department to address all issues related to infrastructure in a fast and efficient manner.

The move to create a new department, which will come directly under the chief minister's office, is likely to be cleared by the state cabinet very soon.

According to a senior government official, the creation of a separate department for infrastructure is expected to attract more investments in IT, industries, ports, and other related infrastructure sectors.

The existing government agencies like the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), the Ports Directorate and other infrastructure related wings will come under the new department, once the decision is formalised.

"At present, the industries department is taking care of infrastructure issues pertaining to IT, industries and other such sectors. But the industries department as such is unable to handle these issues in the desired pace as the effort involves a lot of coordination and liaison among several government departments. In this background, a separate department to address the crucial infrastructure issues, is thought necessary to compete with other front running states like Gujarat, Karnataka, Maharashtra in attracting new investments," a senior government official told Business Standard.

Once the infrastructure issues are transferred to the new department, he said, the industries department is expected to focus only on policy matters and big projects besides other departmental issues.

According to sources, the state government is also considering the proposal to transfer ports to the new department. At present issues related to ports is handled by the Roads and Buildings (R&B) department.

"The ports subject was originally planned to be shifted to the industries department. With the government creating a separate department for infrastructure, the subject will naturally form part of the new department," the official said.

Meanwhile, the state government today said that the gross state domestic product (GSDP) was poised to grow at about 5.5 per cent for the current financial year. The growth in the industrial sector has been projected at 6.8 per cent with the construction sector registering a 7.1 per cent growth.

The services sector too fares on par with the industrial sector with 6.8 per cent growth with a booming growth of 20.7 per cent in the IT sector.

The overall GSDP growth of 5.5 per cent is still lower than the overall economic growth rate of 5.7 per cent of the state during the Ninth Plan period, according to official figures.