Visakhapatnam - the City of Destiny has the unique distinction of having all weather natural harbour surrounded by scenic beauty of Eastern Ghats. The natural advantage of Visakhapatnam has attracted several giant industries which are import/export dependent. Having observed the industrial growth in this part of the country and hoping for a prosperous growth of the city, the Government of India had set up this Special Economic Zone in the year 1990.

Apart from existing sprawling 360.5 acres land, VSEZ has acquired 200 acres of additional land for expansion of zone looking at the flood of entrepreneurs visiting the Zone. The Zone is attracting investment from all sectors. There are 35 working units and equal number of active under implementation units. After conversion to Special Economic Zone w.e.f., 01.01.2003, the Zone started attracting several entrepreneurs including corporate giants like TATAS, Dr.Reddy's, HBL Nife, Rane Engne Valves, Gland Pharma etc.

To make the SEZ policy more authenticated and build confidence in the minds of the investor, Govt. of India passed SEZ act in the parliament and the same came into force. SEZ Policy is liberalized and user friendly without any hassels. Being a designated Foreign territory, the functions of SEZ units are self certified and no routine examination of the goods by the customs. The supplies from DTA to SEZ unit are treated as physical exporet and the benefit of DEPB extended to the DTA unit or to the SEZ unit on the basis of disclaimer.

The best of the facilities and incentives are now available under SEZ scheme. Every company is now looking at SEZ scheme for their Export Industry / Services. Why don't you become part of it and reap the benefits. The full utilization of such infrastructure facilities and generous incentives depends on where your proposed facility is located. Of course, there is no better place than Visakhapatnam Special Economic Zone (VSEZ). You do business and We take care of the rest.

Advantage VSEZ:-
1. High quality infrastructure at affordable rentals with initial concessions
2. Action oriented, responsive and export-friendly administrative set up
3. On-line services for all clearances/permissions
4. Strategically located - Easy accessibility to South and South East Asian countries
5. Strong industrial base and productive workforce
6. Readily available skilled workforce at reasonable wages
7. High quality and low cost social infrastructure
8. Well connected by rail, road and air to rest of the country
9. In-house customs facility for quick and easy clearances

What SEZ Scheme Offers you:

• SEZ is a designated duty-free enclave and treated as foreign territory for trade operations, duties and tariffs
• Units can be set up for manufacturing, trading or service activity
• Policy permits self-certification procedures for all clearance/permissions
• Units have to achieve only positive Net Foreign Exchange (NFE) within five yers i.e., A-B>0 where (A) is the FOB value of exports; and (B) is CIF value of imports
• Exemption from Customs and Central Excise duty on import/local procurement for the purpose of establishment and maintenance of the unit
• In SEZs, entrepreneurs can also avail the benefit of duty-free import/local procurement for the purpose of establishment and maintenance of the unit
• A single Letter of Permission (LOP) for both manufacturing and trading activity
• Supplies from DTA to SEZ units treated as exports. Domestic supplier may claim DEPB in lieu of drawback or drawback. SEZ units are eligible to claim DEPB on the basis of the disclaimer
• Unlimited DTA sale on payment of full duties for manufacturing units
• Trading units are also permitted DTA sale on payment of full duties subject to achievement of positive NFE
• 100% Direct Foreign Investment through automatic route in SEZs and full and free repatriation of export proceeds permitted
• Part of production or production process may be undertaken in the Domestic Tariff Area including by jewellery units. Sub contracting part of production process is also permitted abroad
• SEZ units could dispose off rejects, scrap in domestic market on payment of duties

Fiscal Incentives Available to SEZ Unit:

• Exemption of Service Tax - only to SEZ units in India
• Exemption from payment of Central Sales Tax (CST)
• Complete exemption from payment of Income Tax for the first 5 years, 50% for next five years and 50% of ploughed in profits for next 5 years

EXCLUSIVE SEZ POLICY :

• The Development Commissioner has been delegated, with the powers of Commissioner of Labour and Inspector of Factories and declared nodal authority for clearances in respect of all State Government Departments
• All concerned State Government Departments shall depute an officer to look after permissions/clearances in respect of SEZ units
• Self-certification procedure has been introduced for filing of regular returns
• Public Utility Status granted
• Women working in night shifts allowed for software units

Incentives OFFERED BY state Government :

• Exemption from levy of VAT on the inputs supplied by the units within SEZ and off Zone to the units located in the SEZ
• Exemption from payment of stamp duty and registration fee on registration of lease deeds of plots/SDFs alloted in VSEZ
• 100% exemption from payment of stamp duty and registration fee for loan agreements, credit deeds, mortgages and hypothecation deeds executed by the Special Economic Zone units for assets in the Special Economic Zone in favour of Banks and Finantial Institutions
• Exemption from payment of capital contribution charges for supply of water
• 15% investment subsidy on fixed capital investment to Small Scale Industries (SSI) and Tiny Industrial Units subject to a limit of Rs.15 lakhs
• 25% of the tax paid during one financial year will be ploughed back to all eligible industries as a grant by the Government towards the payment of tax during next year
• 3% interest rebate on the Prime-Lending Rate (PLR) on term loans taken by new tiny/SSI units subject to a limit of Rs.5 lakh per year. This will be 5% if SC and ST entrepreneurs promote the units
• An additional investment subsidy of 5% subject to a maximum of Rs.5 lakh will be provided to women entrepreneurs. They will be also given a 5% interest rebate on PLR
• Projects with an investment of Rs.100 Crore and above are eligible for all the incentives available to large and medium scale industries
• The Government will also extend tailor-made benefits to suit to a particular investment requirements on case-to-case basis.

DEVELOPMENT OF SEZ BY STATE / PRIVATE :
SEZ Scheme allows State Governments, Private firms and individuals to develop multiproduct SEZs in 1000 Hectares, Sector Specific SEZs in 100/25 Hectares and creation of infrastructural facilities in the existing zones. The developers of infrastructure are extended a package of incetives, which include:

BENEFITS TO THE DEVELOPERS:

• Duty-free (Customs and Central Excise) import/procurement of goods for development, operations and maintenance
• Income Tax exemption for 10 years in the first 15 years
• Full freedom in allocation of developed plots/sheds to approved SEZ units on purely commercial basis. They can either sell, lease or rent the created facility
• Full authority to provide services like water, electricity, security etc., purely on commercial basis
• Facility to develop township within SEZ with residential areas, markets, playgrounds, clubs, recreation centers etc., on commercial lines

HOW TO APPLY:
Apply, in prescribed proforma (Appendix-14-1A) of Hand Book of Procedures (Vol-I) in 3 copies along with 3 copies of Project Report and a Demand Draft for Rs.5000/- draw in favour of Pay & Accounts Officer, Ministry of Commerce, Central Bank of India, Udyog Bhavan, payable at New Delhi
The application shall be accompanied by
 (i) Project Report 
(ii) Income Tax Returns of the Promoters 
(iii) Identity proof of the Promoters 
(iv) Registration Certificate details

SEZS  APPROVED BY MOC SO FAR:

• Kakinada SEZ, Kakinads
• Wipro IT SEZ, Hyderabad
• Divis Pharma, Vizianagaram Dist.
• IT SEZ by Government of Andhra Pradesh at International Airport, Hyderabad

 For Government of India Policy  on SEZ scheme visit http://sezindia.nic.in