Due to policy change, IT units in Vizag SEZ still on a sticky wicket.

In accordance with the Andhra Pradesh Government's plans to develop Visakhapatnam as an IT destination an incubation centre was launched in one of the special economic zones atop Rushikonda Hill. The Chief Minister will lay the foundation stone for the IT signature tower next month.

However, some units in the IT SEZs atop Rushikonda are struggling. These units are dissatisfied with the arrangement. Initially, the units were sold lands on the Rushikonda Hills, but subsequently these lands were converted into SEZs and the owners of these units were asked to sign a lease deed with the Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC). This created several problems. The IT companies, which built offices on the Rushikonda Hills could not get loans from the banks and they also could not sub-lease the facility to other IT companies. These companies then sought a co-developer status along with the APIIC, failing which they wanted the Centre to denotifiy the SEZs.


HBL