VSEZ turnover crosses Rs.1L cr in FY21, grows by 14.8%

VSEZ has broken the records of all 32 years in achieving the exports, which is the highest among all the SEZ zones in the country

Visakhapatnam: CONTINUING its success story the difficulties posed by Covid-19 pandemic notwithstanding, Visakhapatnam Special Economic Zone (VSEZ) achieved an export turnover of Rs 1.05 lakh crore equivalent to $14408 million recording an increase by 14.8 per cent during 2020-21.

SEZs in Andhra Pradesh, Telangana, Chattisgarh and Yanam of Puducherry come under the jurisdiction of VSEZ, which has its zonal headquarters at Duvvada, an industrial area of Visakhapatnam.

The highlights of the year include growth in merchandise (26.97 per cent) and under services sector (9.44 per cent). So far, an investment of Rs 64,148 crore has been made in VSEZ, and employment is provided to 3.93 lakh on a regular basis. VSEZ has broken the records of all 32 years in achieving the exports, which is the highest among all the SEZ zones in the country, VSEZ Development Commissioner A Ram Mohan Reddy told Bizz Buzz on Tuesday.

In VSEZ, there are 13 SEZs run by State-owned agencies like APIIC and TSIIC i.e., seven in Telangana and six in AP. VSEZ has been set up here as Visakhapatnam Export Processing Zone (VEPZ) over 360.5 acres in 1989 after 24 years of the first SEZ set up in Kandla. With the promulgation of SEZ Act and Rules in 2005, and 2006 VSEZ came into existence.

Reddy said "If we look at the country's perspective, SEZs in the country, earned Rs 7.96 lakh crore foreign exchange and provided direct employment to 22.15 lakh with an investment of Rs 5.75 lakh crore during 2019-20. It has come down to Rs 7.10 lakh during the just concluded fiscal due to the pandemic. SEZs in the country as such contributed little more than one-third of the total exports from the country, out of total Rs 23.1 trillion exports."

As on date, VSEZ, has 61 SEZs (out of a total of 253 in India) fully operational, with 526 units spread over AP, Telangana and Chattisgarh, and the zone has achieved exports to the tune of Rs 96,886 crore during 2019-20 and recorded 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 despite the lockdown, the reduction in employment under VSEZ was just less than 1 per cent. Now after lockdown, the employment has increased by more than 5.6 per cent over last year.

During 2020-21, the sector-wise contribution as on date in VSEZ is as follows: Computer/electronic software Rs 70,056 crore, 66. 9 per cent, pharma and biotech Rs 20,500 crore, 19 40 per cent, trading and services Rs 4,566 crore, 4 35 per cent, metals, minerals, alloys Rs 3682 crore, 3 1 per cent, food and agro industry Rs 2394 crore, 2 31 per cent, engineering electronics and hardware Rs1775 crore, 2 31 per cent, textiles and garments Rs 1551 crore, 1.8 per cent. Leather, footwear and sports goods contributed Rs 766 1 crore, chemicals Rs 304 crore and gems and jewellery Rs147 crore.

AP Special Economic Zone-Atchutapuram, a multi-product SEZ notified in April 2007 and run by APIIC, is among few SEZs which has done exceptionally well during the pandemic.

It has achieved a turnover of Rs 5,427 crore recording a growth rate of 23 per cent. The SEZ has attracted investment from ferro alloys, pharma and chemical units.