Visakhapatnam: VISAKHAPATNAM Special Economic Zone (VSEZ), which achieved an exports turnover of Rs 21,914 crore during the first quarter of current financial year is expecting at least 23 per cent growth.

The zone which could record 23 per cent growth during Q1 is expecting to continue the same growth momentum. It achieved a 29 per cent growth in merchandise and 19 per cent in software and services sector. During the corresponding period last year, the zone achieved a turnover of Rs 18,119 crore.

VSEZ Development Commissioner A Rama Mohan Reddy told Bizz Buzz on Tuesday that they had already informed their growth plan to the Ministry of Commerce some time ago.

During the first quarter, merchandise exports registered a business of Rs 8,892 crore accounting for an increase by Rs 2,009 crore over corresponding period last year. Software and services sector exports saw a turnover of Rs 13,401 crore. The increase in exports over CPLY was put at Rs 4,174 crore.

VSEZ was established in the city as Visakhapatnam Export Processing Zone (VEPZ) over 360.5 acres in 1989. Later with the promulgation of SEZ Act and Rules in 2005, and 2006, VSEZ came into existence with its jurisdiction over Andhra Pradesh, Telangana and Chattisgarh, Yanam (part of Puducherry UT), and started regulating the set-up, operation, and regulation of SEZs in these areas.

As on date, VSEZ, has 61 SEZs (out of a total of 265 in India) fully operational, with 523 units spread over AP, Telangana and Chattisgarh.

The zone has achieved exports to the tune of Rs. 96,886 crore ($13,826 million) during 2019-20 with a growth of 32.79 per cent compared to 2018-19, which was the highest among all the seven zones of the country.

Reddy said VSEZ would continue its growth momentum and scale up further in exports once the Covid-19 pandemic subsided. Referring to exports during past five years from VSEZ, he said the export growth was nominal. The exports were good during 2019-20. "If the pandemic recedes, it is likely that VSEZ will achieve at least 21 percent during the current year, if not 30 per cent," he stated.

The export figures during past five years are as follows: 2016-17 Rs 67,926 crore, 2017-18 Rs 70,092 crore, 2018-19 Rs 74,747 crore, 2019-20 Rs 96,886 crore (highest in 30 years) and 2020-21 Rs 11,3975 crore. During 2020-21, the exports made were to the tune of Rs 1,13,975 crore ($14,188 million) recording an increase in exports of 14.50 per cent.