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India was the first country in Asia to recognize the effectiveness of Export processing Zones model and set up the first EPZ at Kandla in 1965.

With a view to overcome the shortcomings  experienced in the regime of multiplicity of controls and  clearances,  absence of world class  infrastructure and in an unstable fiscal regime and to attract  larger foreign investments in to India , the Special Economic Zones (SEZ) policy was announced  in April 2005 .

The SEZ Act, 2005 and the SEZ Rules of 2006 laid down general rules as below.

  • Generation of additional economic activity
  • Promotion of exports of goods and services,
  • Promotion of investment from domestic and foreign countries
  • Creation of employment opportunities
  • Development of Infrastructure facilities


Consequent of the policy 439 formal proposals for SEZ’s have been approved and 195 have been notified. The land involved for all the 439 SEZ’s is 59685 acres and for the 195 notified SEZ’s is 26072.

Out of the total land area of 2,97,3190 sq. kms in India, total agricultural land is of the order of 1,62,0388 Sq. km. The land required for 439 SEz’s is 596 sq.km and for 195 notified are 260 sq. kms.

Since 2003-04, all SEZ’s in the country have exported Rs.13,854 crore which shot upto  Rs.34,615 crore in 2006-07.  As of now the SEZ’s have brought in an investment of Rs.67,347 crore  and given jobs to  61,015 persons .

Among the top SEZ’s in the country, the Apache (Adidas) SEZ in Nellore and the Hyderabad Gems and Jewelry SEZ have become role models of investment and also employment generation in the country.

SEZ’s  in Andhra Pradesh :

Andhra Pradesh m with a 970 km long coast line and abundant water, power and mineral resources in addition to talented pool of man power has become a role model for the setting up of Special Economic Zones.

IN view of the highly stable political scenario and natural resources, the Government of India has sanctioned  71  SEZ’s of which  46 have been notified and 19 have been formally approved and five others have received in-principle approvals.
The SRI City SEZ is a multi product facility located 75 kms from Tirupati over   1023 hectares, is just 65 kms from the major port of Chennai and 40 kms from Ennore and  65 Kms from Krishnapatnam ports .

The Kakinada SEZ spread over 1000 acres of 16 villages aims to provide a petro-chemical refinery is aided by a deep sea port operated by a private operator.

The IFFCO has set up a food processing SEZ (KISSAN SEZ) over 2700 acres in Nellore District with an investment of Rs.500 crore. The Visakha SEZ spread over 2206 acres at Achutapuram has HPCL participation.

The FAB city SEZ in Hyderabad spread over 1200 acres aims to provide infrastructure for hardware industry, micro chips is just 8 kms from the new international airport. A SemIndia and Solar semiconductor has already   promoted the SEZ.  Nearly Rs.2200 crore spent on infrastructure as on date.

As of now 71 SEZ have been formally approved, of which 43  are IT and ITES,  21 are specific products like, leather, apparel, pharma, food processing etc.,  five  are multi-product and only one SEZ is in the category of multi-use.

As of now total acreage under SEZ in Andhra Pradesh is of the order of 16,288 acres and all of them put together are expected to generate an employment for 25 lakh persons.

The Andhra Pradesh Industrial  Infrastructure  Corporation, the nodal agency for  all projects including  IT parks,  Biotech Parks, Apparel Parks and  SEZ in the state has, from  2003-04  to  2007-08 realised a revenue of Rs.4040 crore and spent  Rs.3832 crore on land development 

It has allocated 6817 acres attracted an investment of Rs.5818 crore,  promoted units worth Rs.2550 crore and generated  employment for 2,07,030  persons.  In the Telengana region it has promoted  103  Industrial parks over 15,850 acres  as against 56 in Rayalaseema with  5070 acres and 132 in coastal Andhra  region  over 34,945 acres.

In all 83503 acres of land have been acquired by the government for  Industrial parks (291)  - 55866  acres, SEZ( 39) -19637 acres and major  PSUs and Oil  industrial units – 8000 acres  .

The Pharma city promoted by the APIIC in Visakhapatnam in partnership with RAM KY is spread over 2200 acres with an investment of Rs.315 crore. The Pharnma SEZ (2100 acres) and Hetero Pharma (270 acres) and the Brandix apparel SEZ(1000 acres) are spread around  the port  city.