• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

V. Rishi Kumar

The Andhra Pradesh Government is betting big on the establishment of special economic zones (SEZs) across the State both in terms of boosting the economy and importantly for job creation.

Having garnered a lion’s share of SEZs cleared and notified by the Centre, a big chunk of them in the IT and ITeS sectors, some product-specific ones such as for pharma and textile, and a few multi-product SEZs, it has embarked on a process to s trengthen the common infrastructure that will help promoters of these SEZs expedite their projects.

According to the State Major Industries Minister, Dr J. Geetha Reddy, who recently addressed zonal managers and field officers for infrastructure development, the State expects these SEZs to create about 8 lakh jobs across various sectors over the next five years and thereby boost the business ecosystem and the State economy.

Andhra Pradesh has taken the lead in terms of applications for SEZs. It has received approval for 70 SEZs across the State, with most of them in and around Hyderabad, some in Visakhapatnam and in Nellore. However, of the 70 approvals, 54 have been notified so far. Of the 54, 39 with whom Andhra Pradesh Industrial Infrastruture Corporation Ltd., (APIIC) is associated with, would receive special thrust and investment in infrastructure.

According to data from APIIC, which is the nodal agency for infrastructure development in the State, and a catalyst in developing infrastructure for industries and now SEZs, Andhra Pradesh now accounts for nearly half of the total SEZs notified by the Centre.

Out of the total 154 SEZs notified, AP has received approvals for 45 of them, followed by Maharashtra 21, Tamil Nadu 21, Karnataka 18, Gujarat 12, Haryana 8, Kerala 8 and Uttar Pradesh 6.

Within the State, a sector-wise break-up of 70 SEZs shows that 45 have been notified thus far, 20 have received formal approvals, and five in-principle approval. Within those notified, IT and ITeS sector accounts for 30 SEZs, then there are three multi-product SEZs, followed by two textile and apparel units, one in the semiconductor areas and one each on footwear, gems and jewellery, pharma and formulations, biotechnology, electronic hardware and paper. An analysis of the break-up of these SEZs shows that 37 are located in the Ranga Reddy district of the State, followed by 9 in Visakhapatnam with others spread out in Medak, Warangal, Srikakulam, East Godavari and Krishna depending upon strengths of a particular area. Hyderabad and Visakhapatnam seem to be preferred destinations for these SEZs.

In the case of the IT sector, which has received a significant number of approvals for SEZs in AP, Ranga Reddy district around Hyderabad would account for 31 of them, Visakhapatnam 3, Warangal 2, East Godavari one and Krishna 2. In the IT SEZs, all the top tier IT firms TCS, Infosys, Wipro, Satyam, Cognizant and a few MNCs such as Google are in the process of setting up in the State. These SEZs would also serve as hedge against the sunset clause of the Software Technology Parks of India (STPI) that would take away tax sops. These SEZs would help them transition smoothly to the SEZs even as the Union IT& Communication and Finance Ministries and bodies like Nasscom have hinted at considering the extension of STPI benefits to ensure that the Indian industry stays competitive. Of the 70 SEZ notified for the State, APIIC is associated with 15 of them, and is assisting 24 others to set them up, and the rest 31 are under private development. Within these APIIC is directly engaged with 8, which are in the IT/ITES, six are sector-specific and one is a multi-product special economic zone.

The State Government is in the process of expediting the creation of infrastructure for the Fab City project, as more companies in the semiconductor industry, solar panel business have shown interest. These include Hindustan Semiconductor, Solar Semiconductor, Titan Energy, Moser Baer to name a few. The State Government has signed an MoU with Nanotech Silicon India Ltd to set up a semiconductor mega fab. Also it has set up four ‘Think Tanks’ for IT, ITES, hardware and animation. With SemIndia serving as the initial anchor at the Fab City, and their assembly and test mark up facility likely to get into operation late in 2008, the State is witness to heightened interest from players in the semiconductor ecosystem.

More Stories on : Infrastructure | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Termination of co-op staff without enquiry barred: HC

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line