Despite the adverse effect of COVID-19 on the country’s economy, the VSEZ has recorded a growth of 12.07% in exports, by grossing up a total turnover of ₹35,953 crore in the first quarter of the financial year.
It had contributed close to 1/8th of the total exports from all the SEZs in the country, said A Rama Mohan Reddy, Development Commissioner, the Visakhapatnam Special Economic Zone.
According to him, to save the units from closing, VSEZ approved eight units, for making COVID-related items. As as result a total 5.59 crore face masks, 69 lakh face shields, 14.5 lakhs PPE kits and 9 lakh shoe covers were manufactured and supplied.
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So far 3,19,000 COVID-related items had been supplied to various agencies and still these units had reserves of 6.98 lakh, he said.
Earlier known as VEPZ, which was started in 1989, VSEZ today is a zone spread over A.P., Telangana and Chhattisgarh.
So far 85 SEZs had been notified under the zone, and 60 were fully operational with 505 units. The zone had achieved total exports to the tune of ₹96,886 crore, which accounted for 12.3% of the country’s exports from SEZs.
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“Till now an investment of ₹56,180 crore has been made, and employment provided to over 3.79 lakh people,” he said.
Due to the impact of the pandemic there had been a nominal reduction in man power of around 3,871, which was less than 1%, said Mr. Reddy.
New units
“About 90 new units have been approved during the financial year 2019-20, with an investment of ₹8,397 crore and exports in the next five years from these units are expected to be to the tune of ₹58,722 crore and projected employment is around 68,875. VSEZ has approved 13 new units this year too, despite the COVID crisis,” said Mr. Reddy.
He pointed out that IT/ITES sector had contributed to about 71% of exports.
There are 30 IT/ITES SEZs, 26 in Telangana and four in A.P., with about 372 units – 322 and 50 respectively. During 2019-20 fiscal, these units grossed up about ₹68,623 crore exports. Exports so far in this fiscal were around ₹23,953 crore, recording a growth of 12.50%.
Employment in this sector was 3,06,834, with about 2.90 lakh persons working from home, due to the pandemic, he said.
According to him, exports by pharma units during 2019-20 were ₹15,027 crore and in this year they had already clocked ₹7,402 crore till August 20, up by 32.7% compared to 2019-20.