EOUs exports up 22%

Exports from 100 per cent export oriented units (EOUs) in the state increased by 22 per cent during the first half of current fiscal at Rs 1,195 crore, as compared to Rs 980 crore in the corresponding previous period.

"During 2004-05, about 164 units, operating in EOUs, exported products worth Rs 2,200 crore. In the current fiscal, exports have already touched Rs 1,195 crore in first six months. At this rate, they are expected to reach the Rs 2,500-crore mark by the end of this fiscal," M V Subba Reddy, development commissioner, Visakhapatnam special economic zone, and in-charge of 100 per cent EOUs, told Business Standard.

Raising hopes of greater export growth, about 10 new units have come up and started exports. During last fiscal, officials issued 66 letters of permission (LoPs) to set up 100 per cent EOUs in the state and in the current year, they have so far issued 29 LoPs.

Rail Calcining and Dr Reddy's Laboratories, which occupied the first and the second place in the state by achieving an export turnover of Rs 215 crore and 125 crore respectively, continued their domination with exports of Rs 140 crore and Rs 95 crore respectively in the first six months. Sanghi Spinners India Limited's exports touched Rs 91 crore in the first six months of the current fiscal occupying the third place.

"Due to globalised environment, our entrepreneurs are able to tie up with several foreign companies for exports and at the same time they are trying to reduce production costs using various concessions being offered by the Centre to compete with the global players," he said.

To promote exports, the Centre provides various incentives such as income tax exemption, VAT reimbursement, customs and excise duty concessions. "As a result of these incentives, production costs have come down by as much as 30 per cent in the 100 per cent EOUs. Apart from this, the increased production and the entry of several new units during the last 8-10 months have raised exports," Subba Reddy said.