Exports from Andhra EOUs to touch Rs 2,200 cr

The 140-odd industrial units that have been working under the 100 per cent EOU (export-oriented units) umbrella in the state are gradually gaining momentum on the exports front.

Thanks to the sops being offered by the state and central governments, exports from these 100 per cent export-oriented units are poised to grow by more than 40 per cent this fiscal.

Already, exports from these units have crossed the Rs 1,800-crore mark by the end of February as compared to Rs 1,534 crore in the last fiscal.

In the first six months of the current fiscal, exports from these 100 per cent EOUs touched Rs 980 crore as compared to Rs 598.12 crore in the corresponding period of the last fiscal, thus representing a growth of more than 60 per cent.

"Most of these exports are from pharmaceuticals, textile garments, granite, hardware chips and solar energy equipment manufacturing units only," P Ramesh Kumar, development commissioner, 100 per cent EOUs, told Business Standard.

While exports from the EOUs touched Rs 1,010 crore and Rs 1,534 crore in 2002-03 and 2003-04 respectively, Kumar expects exports to reach the Rs 2,200-crore mark this fiscal.

"Actually, around 938 entrepreneurs took letter of permission to set up 100 per cent EOUs in the state. But due to the lack of interest shown by a few entrepreneurs, close to 566 letters of permission were cancelled, and about 66 units have been de-bonded since 2000 to date," he said.

While 166 units are under construction and are expected to start production next fiscal, the remaining 140 units are currently engaged in manufacturing and export of various products.

"Due to this, we expect a significant growth in exports from the 100 per cent EOUs next fiscal," he added.

According to Kumar, besides globalisation and liberalisation, several concessions being offered by the state and central governments to promote exports through the 100 per cent EOUs are attracting many entrepreneurs to set up units here. "So far, we have issued 86 new letters of permission to entrepreneurs," he said.