Performance of EOU and export processing zone (EPZ) sector in the state compared to the same in other states was very low, though Andhra Pradesh has good potential for export in many areas.

`Poor performance is mainly due to lack of interest of state government in solving the problems faced by these sectors,' according to chairman, KP Sastry 100 per cent EOU committee of federation of Andhra Pradesh chamber of commerce.

Presently there are 671 approved EOUs in the state. Out of this, 121 have gone into production and others are under various stages of implementation.

Though Visakhapatnam EPZ, formally inaugurated by the union commerce minister Ramakrishna Hegde yesterday, has been providing all infrastructure facilities in the zone, `many units are yet to come in,' Sastrysaid.

Andhra Pradesh contributes six per cent to the total export of the country.

Stating that better coordination among the concerned departments would solve some of the long pending issues of EOUs, Sastry said the centre was offering subsidies and assistance to 100 per cent EOUs, but lack of coordination in the implementing agencies have slowed the phase of growth.

Sales tax and purchase tax exemption on raw materials by the EOUs in the state was a long pending demand whereas many of the neighbouring states have already exempted EOUs from sales tax, Sastry pointed out.

Another important issue was the state government levy on agricultural produce, he said adding `this type of cess put the state in a very disadvantageous position to compete in international market.' The federation president JS Rao wanted the centre to consider setting up export promotion parks exclusively for gem and jewellery and pearls in Andhra Pradesh as the state was emerging as an important exporter of gem and jewellery.