More land to come industrialists' way

Govt to extend VSEZ by another 200 acres

The government has decided to extend the existing Visakhapatnam Special Economic Zone (VSEZ) by another 200 acres. The decision was taken to meet the demand of industrialists for more land.

"We have been receiving applications from industrialists from different parts of the country and even from other countries for land allotment in VSEZ. To meet this demand, the government has given permission to acquire an additional 200 acres of land adjacent to the existing VSEZ land," P Ramesh Kumar, development commissioner, VSEZ, told Business Standard.

VSEZ has been developed on a 386-acre of land. In the last 10 years, the central government has spent close to Rs 50 crore to create infrastructure like roads, electricity and other amenities including 3-standard design factory (SDF) buildings.

The existing land has been totally allotted and the 3 SDF buildings are fully occupied by software, textile, diamond processing companies and other units.

Currently, 28 units are operating including diamond processing, food processing, textile, software and several trading units.

These units have exported Rs 435 crore worth of products during the last fiscal, and in the current year their exports expect to touch the Rs 600-crore mark. Around five major units are under construction and will begin exports during the next fiscal, he said.

It is the incentives being offered by the government that are drawing companies and entrepreneurs to VSEZ, Ramesh said.

The central and the state governments are offering many benefits and concessions like single window clearance, 100 per cent income tax exemption for the first 5 years, sales tax exemptions, duty-free on imports, nominal lease rents and several other attractions to entrepreneurs who set up units in VSEZ to promote exports.

"Companies like Matrix Laboratories, Natural Bio and Tata Ferro Alloys too have expressed their desire to set up units here. At the moment, we have received enquires for more than 300 acres of land," Kumar said.

The VSEZ officials have made a request to the district collector for acquiring land adjacent to the existing 386 acres in Duvvada Village.

"Initially, we asked for 200 acres of land. We hope that the state government will take necessary steps at the earliest," he said.