AP and Telangana SEZs are major contributors to overall exports

Visakhapatnam: Special Economic Zones (SEZs) of both Telugu states — Andhra Pradesh and Telangana — have been contributing significantly to overall exports by Indian SEZs.

In the just-concluded 2015-16 fiscal year, exports from Andhra Pradesh and Telangana SEZs were pegged at about Rs 55,000 crore which is almost 25 per cent of the overall exports from India’s SEZs.

The SEZs in Andhra Pradesh have also turned out to be major export hubs, registering a 20-plus per cent growth rate in 2015-16. The same for the rest of the SEZs was just 0.77 per cent.

Of the total exports from both the states, Information Technology (IT) sector contributed more than half. IT exports, from Hydera-bad significantly, stood at Rs 32,000 crore during the 2015-16 fiscal year.

“IT sector continued to dominate SEZ exports from this region. That is due to the world-class infrastructure facilities in and around Hyderabad. After IT, it is pharma products, apparel and building materials. Since new pharma units have begun operations this year at Vizag we are expecting exports to go up in the present fiscal,” VSEZ joint development commissioner Dr G. Trinadh Kumar told this newspaper.

SEZs coming under Telangana, Andhra Pradesh, Chhattisgarh, and Yanam come under the VZES office here. On the flip side, not all SEZs are functional. In the two Telugu-speaking states, about 109 SEZs had been approved since 2005. But only 70 SEZs are notified; and out of them, only 50 are operational. Among the 70 notified, apart from the 50 operational, the remaining are at various stages of being operational.

Among the 50, Andhra Pradesh has a total of 21 functional SEZs. The exports would have been more if all the approved SEZs were functional. The SEZs in both the states belonged to Union and state governments, besides some that are run by private players.

Around 20 SEZs in both the states that remained only on paper and never saw the light of day were cancelled recently. The cancellation procedure was initiated for another 10 such SEZs. “We regularly review the progress of the-se SEZs. If the SEZs do-n’t start functioning within the stipulated time, they will be cancelled,” added Trinadh Kumar.

Across the country, approval has been accorded to 412 SEZs, out of which 204 SEZs are functional and the remaining 226 SEZs non-functional.