Special Economic Zones (SEZs) in Andhra Pradesh: A Stocktaking

Abstract

The state of Andhra Pradesh is a leader in the country for special economic zones (SEZs) on all the common quantitative and qualitative indicators of assessment. Yet, the performance of the SEZs can at best be described as mixed. The SEZs continue to be permeated with a number of concerns. The percentage of lands put under utilisation remains low. The trend to denotify already sanctioned SEZs is on the rise. Land aggregation for the SEZs is beset with numerous problems. There have been serious environmental concerns as well with a few of the SEZs. On the other hand, there are many impressive success stories also. Numerous SEZs in the state have been universally recognised for attracting high-value clients, for contributing significantly towards the well-being of the surrounding community, for taking care of the environment responsibly and for strategic utilisation of the lands in their possession. In days to come, new instruments of industrialisation being promoted by the government, like the National Manufacturing and Investment Zone and the Information Technology Investment Region, are bound to further erode the standing of the SEZs. It is felt that only those SEZs that have adequately mastered the success factors are going to thrive, while all the rest face an uncertain future.

This chapter was written when the state of Andhra Pradesh was a composite state. From 2 June 2014, the composite state has been bifurcated into the new state of Telangana and the residuary state of Andhra Pradesh.