Andhra Pradesh Govt to de-notify IT SEZs
Andhra Pradesh has in the past attracted investments from IT giants like Microsoft, Google and Facebook. However, the inability of its tier-II cities in attracting investors for IT SEZs, has led Andhra Pradesh Government to of de-notifying these SEZs.
According to a top bureaucrat, the government is contemplating to convert these SEZs into other industrial parks. It is the first time that the state government is seeking to de-notify SEZs.
Out of the 589 SEZs in India, Andhra Pradesh has 115. Amongst the 74 notified SEZs in the state, nearly 56 are either IT or ITeS. Almost half were developed by the government through its nodal agency Andhra Pradesh Industrial Infrastructure Corporation (APIIC). Even the recent measures of relaxing norms pertaining to the land size and built-up area by the Centre has failed to trigger interest.
According to the top management of APIIC, the IT and ITeS companies do not feign interest in establishing their units in the SEZs located in tier-II cities of the state even years after notifying these zones. Economic slowdown has largely been cited as the key reason for shunning the SEZs, by IT and ITeS companies.
Only 32 SEZs located in and around Hyderabad are operational in Andhra. These SEZ’s are mostly comprised by companies belonging to the IT/ITeS sector. The state of Andhra Pradesh is the fourth-largest exporter of IT services in India. Providing employment to over 3.2 lakh professionals, the state reported Rs. 53,246 crore of revenues from the sector.
APIIC has decided to request the union government to de-notify four SEZs and convert them into general industrial parks. One each in Kadapa, Karimnagar, Tirupati and Visakhapatnam. These SEZs were notified nearly five years ago.
The government has been receiving interest from various other groups of industrial players to establish their facilities in these centres. A sizable portion of these demands are regarding the establishment of marine products and food processing units at the Gambhiram SEZ (near Visakhapatnam).
According to the Confederation of Indian Industry’s state unit, IT companies along with Industry bodies blame either the absolute absence or lack of infrastructure for not moving to tier-II cities and towns.
Due to the absence of social infrastructure like schools and hospitals is the main concern and reason for the reluctance of middle level managers to relocate to these centres. Government officials declared that the SEZs in the state attracted approximately $ 3.2 billion (about Rs 17,600 crore) of investments while creating 1.24 lakh employment opportunities so far. Last year in 2012, the reported revenues amounted to $ 2.75 billion (about Rs. 15,100 crore).
Related Real Estate Articles.
Seven new real estate destinations in India
Complete VUDA row housing project soon: VC asks engineers
