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The Five Characteristics of Successful Innovators

There is not much agreement about what makes an idea innovative, and what makes an innovative idea valuable. For example, discussions on whether the internet is a better invention than the wheel are more likely to reveal personal preferences than logical argumentation. Likewise, experts disagree on the type and level of innovation that is most beneficial for organizations. Somestudiessuggest that radical innovation (which does sound sexy) confers sustainable competitive advantages, butothersshow that “mild” innovation – think iPhone 5 rather than the original iPhone – is generally more effective, not least because it reduces market uncertainty. There is also inconclusive evidence on whether we should pay attention to consumers’ views, with somestudiesshowing that a customer focus is detrimental for innovation because it equates to playing catch-up, butothersarguing for it. Even Henry Ford’s famous quote on the subject – “if I had asked people what they wanted, they would have said fast…

Visakhapatnam Special Economic Zone - IT SEZ's in ANDHRA PRADESH

About VSEZ:-

Visakhapatnam, rightly called the 'City of Destiny', is a major industrial center in the state of Andhra Pradesh. Several industrial units in the public and private sectors are located in Visakhapatnam. These include Port and Shipping, Oil Refinery, Steel, Fertilizer and Heavy Engineering to name a few. The city has strong industrial base, productive workforce and peaceful industrial relations. The city boasts of low cost, high quality social infrastructure - medical, educational, residential and recreational - that match the best available anywhere in the country. 

VSEZ, formerly known as VEPZ, was established in the year 1989. Set up in a sprawling 360 acres of prime land in one of the fastest growing cities of India, Visakhapatnam Special Economic Zone offers state of the art infrastructure coupled with liberal package of incentives, concessions and support services. The export-friendly administrative set up ensures disposal of all approvals and clearances instantly. 

The administrative head of the Visakhapatnam Special Economic Zone is the Development Commissioner. He is also the Zonal Head for all Special Economic Zones and Export Oriented Units in the states of Andhra Pradesh and Chhattisgarh and the Union Territory of Yanam.


About 100% Export oriented unit scheme: 

Introduced in the year 1981 by Govt. of India, the EOU Scheme's main thrust is to boost and attract sector specific exports from all parts of India having huge potential near to raw material source. The Scheme has undergone several changes over a period and the present policy parameter is most liberalized and conducive to the entrepreneur for setting up its Export Oriented Unit. The Scheme covers manufacturing/processing and services. 

Objectives of the 100% Export oriented unit: 

The main objectives of the scheme is to increase exports, earn foreign exchange to the country, transfer of latest technologies stimulate direct foreign investment and to generate additional employment. 

Facilities in the Scheme:

  • Can be setup anywhere in AP, Yanam & Chattisgarh

  • Minimum investment should be Rs.1 Crore in plant & machinery (except for Agriculture/Floriculture/Aquaculture/IT/Service units, Brass hand made jewelery)

  • Existing units in DTA can also convert into EOU Scheme and avail the IT benefits as per latest policy

  • EOU can be setup on leased premises also with minimum lease period of 5 years

  • EOUs are allowed to have additional locations for their operational convenience within the jurisdiction of Development Commissioner, VSEZ i.e., Andhra Pradesh, Yanam & Chattisgarh

  • Units engaged in Business services, Computer and related services, R&D services, Real estate services, Communications services, Engineering services, Educational services etc., can also be set up under EOU scheme availing all the benefits with the investment of below Rs. 1 Crore
Attractive Policy Provisions for EOUs :

  • EOU can also import second hand capital goods without any age limit

  • 50% of physical exports can be sold in domestic market on payment of concessional duty

  • EOUs can process and export rice (Basmati & Non-Basmati)

  • EOUs including Gem & Jewellery units are permitted to sub-contract upto 50% of their production (or) production process in DTA / other EOUs

  • EOUs are allowed to utilize plant and machinery for job work DTA units provided the goods are exported directly from the EOU premises

  • EOUs in Agriculture and allied sectors and in granite sector may transfer the capital goods and the inputs to the Farms/field/quarries for usage relating to the production in the EOU

  • In case of new EOUs, Advance DTA sale will be allowed not exceeding 50% of its estimated exports for the first year except the pharmaceutical units where this will be based on its estimated exports for the first two years

  • Simultaneous Advance DTA sale permission is given on quarterly basis for perishable goods like mushrooms, cut flowers etc.

  • Exports through third party is permitted

  • Exports from the job workers premises is allowed

  • 100% FDI investment permitted through Automatic Route similar to SEZ units

  • EOUs can obtain Foreign currency loans from OBUs situated in the SEZs

  • EOUs have to achieve only positive Net Foreign Exchange (NFE) within 5 years i.e., A - B > 0 where (A) is the FOB value of Exports and (B) is CIF value of imports

Fiscal Incentives available to 100% EOUs:

  • Exemption from Customs and Central Exciuse duties on import/local procurement of Capital goods, raw materials, consumables, spares, packing material etc.

  • Reiumbursement of Central Sales Tax (CST) on purchases made from Domestic Tariff Area (DTA)

  • Corporate Tax Holiday upto 2010

  • CENVAT credit on Service Tax paid

  • Re-iumbursement of duty paid on fuels procured from domestic oil companies as per the rate of Drawback notified by the DGFT from time to time

Special Package of Incentives for Star Export House EOUs (Fast Track Clearance):

  • Permissions and Customs clearances for both Imports and Exports on self declaration basis

  • Fixation of Input-Output norms on priority within 60 days

  • Exemption from compulsory negotiation of documents through Banks

  • 100% retention of foreign exchange in EEFC account

  • Enhancement of normal repatriation period from 180 days to 360 days

  • Exemption from furnishing of Bank Guarantee in Schemes under this policy

  • Exemption from examination of Import Cargo

  • Install one Fax machine & two computers in their Administrative/Registered Office on prior initiation only

  • Procurement of DG set intimation to the Development Commissioner/Jurisdictional Customs/Central Excise authority

  • Remove their Capital goods (or) part thereof for repairs under prior intimation to the jurisdictional Asst./Deputy Commissioner of Customs & Central Excise authority

  • DTA clearance of rejects on priority basis

  • Personal carriage of samples of Gems & Jewellery without a need for prior permission

  • DTA sale of finished products on prior intimation only

  • Participation in exhibition for export promotion on prior intimation only

Incentives available from Government of Andhra Pradesh:

  • 100% reimbursement of stamp duty and transfer duty paid by the industry

  • 100% reimbursement of stamp duty for lease of land, shed or building

  • 100% reimbursement of stamp duty and transfer duty paid by the industry on financial deeds and mortgages etc.

  • Reimbursement of 25% of the cost of land purchased in the Industrial Development Areas of AP Industrial Infrastructure Corporation Ltd., subject to a limit of Rs.5 lakhs

  • Infrastructure assistance to stand alone units by contribution of 50% of the cost of infrastructure from Industrial Infrastructure Development Fund with a ceiling of Rs.1 Crore

  • Provision of a Corpus fund matching the contribution made by consortium industries in Industrial estates subject to a limit of Rs.25 lakhs

  • 15% investment subsidy on fixed capital investment to Small Scale Industry (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 particular investments on case-to-case basis

Incentives available from Government of Chhattisgarh:

  • EOUS will get infrastructure support to the extent of 25% of infrastructure cost subject to a maximum limit of Rs.1 Crore

  • Mega projects (Rs.100 Crores & above) will be eligible for infrastructure support outside Industrial Estates upto 25% of the infrastructure cost subject to a maximum limit of 5 Years for Mega Units

  • Electricity duty exempted for a period of 10 years and 15 years for Mega Units

  • SSI units enjoy interest subsidy @ 5% per annum for 5 years up to Rs.5 lakhs

  • Entry Tax and Stamp Duty exempted

Special Package to Software, ITES & BPO Units: 

Units for Software Development, IT Enabled Services and BPOs can also be registered under EOU Scheme. There is no bar for minimum investment of Rs. 1 Crore unlike other EOUs. These units are eligible for all the benefits available in EOU scheme as detailed above. The following additional benefits are extended to these units

  • Minimum Net Foreign Exchange (NFE) earning is only positive

  • Units can bring hardware, on loan basis from their clients abroad

  • Units may undertake exports using data communication links (or) in the form of physical exports (which may be through courier service also), including export of professional services

  • Unit may install one fax machine at a place of its choice, outside the premises of its location

  • Unit may temporarily take out of the premises duty-free Laptop, computers and video projection systems for working upon by their authorized employees

  • 25% rebate on power (both demand and energy) is given exclusively to SMEs by Government of AP

  • Certification of Softex Forms (for releasing export proceeds) is done by the Development Commissioner

Major Sectors in EOUs:












How to Apply: 

Apply in prescribed proforma (Appendix-14-1A) of Handbook of Procedures (Vol-I) in 3 copies along with 3 copies of Project Report and a Demand Draft for Rs.5,000/- drawn 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:

  • Project Report

  • Income Tax Returns of the promoters

  • Identity proof of the promoters &

  • Registration certificate details

Who Can Apply for 100% EOU Scheme: 

Units undertaking to Export their production of goods and services, except permissible level of sales in the Domestic Tariff Area (DTA) as per Foreign Trade Policy, may be set up under the EOU scheme for manufacture of goods, including repair, re-making, re-conditioning, re-engineering and rendering of services. Trading units however are not covered under these schemes. 

For Government of India Policy on SEZ scheme visit

Visakhapatnam Special Economic Zone Contact Details:
Visakhapatnam Special Economic Zone
Administrative Building,
VSEZ, Duvvada,
Pin 530049.
Telephone: +91-0891-2708255, 2587382, 2768388
Sub Office - Hyderabad
Office of the Development Commissioner
Visakhapatnam Special Economic Zone
5th Floor, Parishram Bhawan
Hyderabad – 500 043,
Telephone: +91-40-23296231 Fax: 23230208
Development Commissioner
Smt. Sobhana K S Rao, IFS
Telephone: +91-891-2708255
Fax: +91-891-2705613
Jt. Development Commissioner
Dr. G. Trinadh Kumar, IFS
Telephone: +91-891-2587555
Fax: +91-891-2587352


Visit  for Complete SEZ Zones Information