Vizag AEP to begin operations by December

Exports from Visakhapatnam Apparel Export Park (VAEP) will begin from December 2005.

Two entrepreneurs have already started construction works and will commence production and exports by the end of this December, according to K Srikanth Prabhakar, park administrator, VAEP, and deputy director, Department of Handlooms and Textiles.

The state government has allotted 145 acres of land to develop this apparel park near Visakhapatnam. Of the 71 plats available at VAEP, the government has allotted 36 plats to 21 entrepreneurs.

"Vizag-based Hirawat Industries and Swarnag Apparels have started construction of building and sheds and will start the production before December," he said. The park is mainly for only small and medium entrepreneurs. Each entrepreneur will invest between Rs 50 lakh and 5 crore on plant and machinery.

"As on date, about 10 applications are pending with the department. We will allot plats to these applicants soon. Some of the non-residents Indians too have come forward to set up units at VAEP. We are confident of selling all the remaining plats over the next 6-8 months," he said.

Initially, the government fixed charges at Rs 225 per square metre but now it has reduced them to Rs 200 per square metre to attract entrepreneurs. The existing 21 plat owners are investing about Rs 25-30 crore to set up their units. All these units will start production and apparel exports during the next fiscal, he said.

The state government and the central government are jointly spending about Rs 25 crore to create infrastructure facilities. The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has spent about Rs 4 crore to create roads, electricity, drains and other facilities.

"APIIC will construct a building to set up a modern training centre at VAEP, which itself will cost more than Rs 4 crore. The state government has already trained about 5,000 village girls in stitching to provide trained manpower to the apparel units which will come up at VAEP," he said.