HYDERABAD: Andhra Pradesh, which has the highest number of Special Economic Zones (SEZs) in the country, seems to be losing its distinction fast.If the data provided by the Ministry of Commerce and Industry is an indication , the state is no longer an attractive destination for SEZ developers.While the number of notified SEZs in AP increased marginally from 73 as on December 2010 to 75 as on September 2011, the number of in-principle approvals remained stagnant at 5 during the same period.Though the number of formal approvals for SEZs increased from 35 in 2010 to 109 in 2011, the gap between AP and Maharashtra in terms of total number of SEZs (including formal, inprinciple approvals and notified SEZs) is getting narrower.In 2010, AP boasted of having the highest number of 113 SEZs, followed by Maharasht ra wi th 80 SEZs.The number of SEZs in AP and Maharashtra stood at 189 and 181 respectively in 2011.Similarly, the number of SEZs in Tamil Nadu increased from less than 100 in 2010 to 133 in 2011.Of the total 381 notified SEZs across the country, AP has 75, followed by Maharashtra with 65.“There has been a drastic decline in the number of SEZs coming up in AP.But this trend is not specific to AP.There is not much demand for SEZs in India,” BR Meena, vice- chairman & managing director of APIIC, told Express.SEZs were initially designed with an offer of a 15- year tax concession on profits earned by the units.But later some of the concessions were withdrawn.As a result of which the units set up after March 2011, will not have the same tax exemptions.Meena dismissed that the ongoing uncertainty over a separate Telangana has hit prospective SEZs.But a section of the industry disagrees with him.“Notwithstanding the lack of tax benefits, SEZs in other states are increasing,” said a CII official.According to him, other states such as Maharashtra, Tamil Nadu and Gujarat have a higher level of commitment and even introduced a state-level SEZ policy, over and above the industrial policy, to assist developers and companies.Such a policy or Act does not exist in AP.While the 73 notified SEZs in AP projected an investment of Rs 70,000 crore and 25 lakh jobs, as of June, 2011 investments stood at Rs 16,154 crore and they offered direct employment to 83,603 only.
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