The Hindu : Andhra Pradesh / Visakhapatnam News : Vizag economic zone woos software, pharma units

Online edition of India's National Newspaper
Sunday, Apr 03, 2005

Andhra Pradesh

Andhra Pradesh - Visakhapatnam

Vizag economic zone woos software, pharma units

By Our Staff Reporter

VISAKHAPATNAM, APRIL 2. Achieving an all-time high turnover of Rs.585 crores during 2004-05, Visakhapatnam Special Economic Zone (VSEZ) is gearing to set up exclusive zones for software and pharmaceutical units.

The zone surpassed the target of Rs.540 crores, a remarkable achievement compared to last year's Rs.435 crores, the officiating Development Commissioner of VSEZ, P. Ramesh Kumar, told reporters on Saturday.

With commitment by big players like Dr. Reddy's Labs to set up their units, VSEZ is expecting a turnover of Rs.1,500 to Rs. 2,000 crores during 2005-06 and Rs.5,000 crore-plus during 2006-07.

``VSEZ is planning to construct a huge complex with two lakh square feet area to house software units, cashing in on projection of Visakhapatnam as the ideal destination after Hyderabad. During the last two months, the VSEZ has attracted eight small and medium units, of which five have already started their operations,'' Mr. Ramesh Kumar said.

The exclusive block for pharmaceutical units was also expected to attract many units due to its proximity to the Pharma City. VSEZ, he said, would house `non-pollutant' formulation companies.

Dr. Reddy's, Cornileous Pharma and Akali Metals had obtained letters of permission (LoP) in the zone located at Duvvada. More number of units were expected once construction on the special block was complete.

With several investors seeking huge stretch of land to start their operations, the VSEZ authorities were seeking allotment of 200 acres adjoining the zone for launching work on its third phase expansion. ``The State Government has blocked the site after its in-principle decision to alienate the site to us,'' Mr. Ramesh Kumar said.

On the current works, he said that they had launched work on the standard design factory (SDF)-II at a cost of Rs.8.5 crores. Considering the need for a weigh bridge inside the zone for the convenience of the export-bound goods, an 80-tonne weigh bridge was being built. A common effluent treatment plant had also been proposed at a cost of Rs.2 crores.

Mr. Ramesh Kumar, who is also incharge of 100 per cent export-oriented units, said that at present, 105 projects were under various stages of implementation. The EoU units had a total turnover of Rs.2,100 crores (provisional figure) during 2004-05 registering a growth of 35 per cent compared to last year's Rs.1,535 crores. The turnover during 2002-03 was Rs.1,453 crores.

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