Minutes of the 45th meeting of the SEZ Board of Approval held on 25th March 2011 to consider proposals for setting up of Special Economic Zones - SEZ - Minutes of the 45th meeting of the SEZ Board

Minutes of the 45th meeting of the SEZ Board of Approval held on 25th March 2011 to consider proposals for setting up of Special Economic Zones The forty fourth (45th) meeting of the SEZ Board of Approval was held on 25.03.2011 under the Chairmanship of Dr. Rahul Khullar, Secretary, Department of Commerce, at 1200 Hrs., in Room No. 47, Udyog Bhawan, New Delhi, to consider proposals for setting up of Special Economic Zones and other miscellaneous requests in respect of notified/approved SEZs. A list of participants is enclosed (Annexure -1). 2. Addressing the Board of Approval members, the Chairman informed that so far 582 formal approvals have been granted for setting up of SEZs out of which 376 have been notified. He further informed that as on 31st December, 2010, over Rs. 1,95,348.16 crore have been invested in the Special Economic Zones and direct employment of the order of 6,44,073 persons has been generated in the Special Economic Zones. During the financial year 2009-10, total export of Rs. 2,20,711.39 crore has been made from SEZs registering a growth of about 121.40% over the exports for the year 2008-09. The export in the first half of financial year 2010-11, has been to the tune of Rs. 2,23,132.31 crore, registering a growth of 46.70% over the exports of corresponding period of the 2009-10. 3. At the outset, the Board noted that the proposals in respect of five States, namely, Assam, Kerela, Puducherry, Tamil Nadu and West Bengal which are election bound and which have come under the Code of Conduct, need not be taken up and all these proposals, accordingly, stand deferred. Item No. 45.1: Proposals for setting up of SEZs. (i) Proposal of M/s. Artha Infratech Private Limited, for setting up of a sector specific Special Economic Zone for Electronic Hardware Software including IT/ITES at Plot No. 21, Sector Techzone-IV, Greater Noida, District Gautam Budh Nagar, Uttar Pradesh by, over an area of 10 hectares. The Board noted that the Developer was in possession of the land. The Government of Uttar Pradesh has also recommended the proposal for formal approval vide their letter dated 10th February, 2010. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Artha Infratech Private Limited, for setting up of a sector specific Special Economic Zone for Electronic Hardware Software including IT/ITES at Plot No. 21, Sector Techzone IV, Greater Noida, District Gautam Budh Nagar, Uttar Pradesh, over an area of 10 hectares. (ii) Proposal of M/s. B. Raheja Builders Private Limited, for setting up of a sector specific Special Economic Zone for IT/ITES at Gigaplex, Plot No. 5, MIDC, Knowledge Park, Airoli, Navi Mumbai, Maharashtra, over an area of 14.15 hectares. (iii) Proposal of M/s. Sterling Port Limited, for setting up of a Port Based Special Economic Zone at Village Dahej, Taluka Vagra, District Bharuch, Gujarat, over an area of 144.07 hectares. (iv) Proposal of M/s. Cybercity Builders Developers Private Limited for setting up of a sector specific Special Economic Zone for IT/ITES at Balanagar Mandal, Kukatpally Municipally, Greater Hyderabad Municipal Corporation, Andhra Pradesh, over an area of 10.12 hectares. The Board noted that the recommendations of the concerned State Governments have not yet been received in the above three proposals. Therefore, the Board decided to defer consideration of these proposals till the receipt of the respective State Government s recommendations. Item No.45.2: Request of M/s. N.G. Realty Private Limited for carving out a sector specific SEZ for Gems Jewellery having an area of 10.32.58 hectares, from the existing sector specific SEZ for Engineering, at village Rajoda, District Ahmedabad, Gujarat, notified over an area of 217.14.09 hectares. This proposal was not taken up for consideration by the Board as it was withdrawn by the developer. Item No.45.3: Requests for co-developers BoA sanctioned approvals to the co-developers subject to the condition that particular terms and conditions of lease agreement/co-developer agreement will not have any bearing on the treatment of the income by way of lease rentals/down payment/premium etc., for the purposes of assessment under the prevalent Income Tax Act and Rules. The Assessing Officer, will have the right to examine the taxability of these amounts under the Income Tax Act. This is applicable for all the cases for co-developers approved by the BoA in this meeting:- (i) Request of M/s. Mytec Software (Pvt.) Limited for co-developer in the sector specific SEZ for IT/ITES at Madhurwada, Andhra Pradesh, being developed by Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The representative of CBDT pointed out that the while the lease agreement was executed on 26.3.2009, the co-developer agreement was executed much later on 29.11.2010 thereby creating a doubt as to whether the lease agreement was intended for the purpose of setting up of a unit by M/s. Mytec Software (Pvt.) Limited. Therefore, after deliberations, the Board directed DC, VSEZ to examine the lease agreement to ascertain as to what activities were originally authorized by the lessor (i.e. the developer) to the lessee (the proposed co-developer) vide that lease, and to submit a report for consideration of the Board. Accordingly, the proposal was deferred. (ii) Request of M/s. Marg Digital Infrastructure Private Limited for co-developer in the sector specific SEZ for Multi Services at Cheyyur Taluk, Kancheepuram District, Tamil Nadu, being developed by M/s. New Chennai Township Private Limited The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. (iii) Request of M/s. Industrial Training Institute, Mundra (ITI Mundra) for codeveloper in the multi-product SEZ at Kutch, Gujarat, being developed by M/s. Mundra Port and Special Economic Zone Limited (MPSEZL). The representatives of D/o Revenue pointed out that the proposal is for setting up of an ITI by the State Government of Gujarat who will come in as a co-developer. Setting up of a Training Institution and running the same may not be treated as an infrastructure to be carried out by the co-developer and in the past, BoA has not encouraged setting up of such training facilities. The Board noted that the proposal is from Government of Gujarat to set up the Institute in the non-processing area of the SEZ. Considering that the co-developer is a State entity and the requirement of skilled man-power, after deliberations, the Board decided to grant approval to the request of M/s. Industrial Training Institute, Mundra for becoming a co-developer in the above mentioned SEZ, for setting up an industrial training institute over an area of 8100 sqm in the non-processing area of the SEZ. The Board, further directed that this approval is not to be treated as a precedent for similar cases which may come up in future. (iv) Request of M/s. Thousand Island Hotels and Resorts Private Limited for becoming a co-developer in the Multi Product SEZ at Kutch, Gujarat, being developed by M/s. Mundra Port and Special Economic Zone Limited (MPSEZL). (v) Request of M/s. Hirise Hospitality Private Limited for becoming a co-developer in the Multi Product SEZ at Kutch, Gujarat, being developed by M/s. Mundra Port and Special Economic Zone Limited (MPSEZL). DC, KASEZ informed the Board that there is lack of hotel and recreational facilities in Mundra Township, therefore, such facilities are required in the zone. However, the representative of Department of revenue pointed out that BoA has already granted approval to two co-developers for setting up hotels in the SEZ. Both the present proposals need to be examined in view of already approved Hotels, their locations and their capacities. After deliberation, the Board decided to defer the above two proposals and directed DC, KASEZ to re-examine the proposals and submit his report for consideration of the Board. The report must clearly consider the existing approvals for setting up Hotels in the zone as a co-developer, the steps taken by the co-developers towards setting them up, the present status of these projects, the occupancy rate of the Hotels in case they have already come up in the zone and also the further requirement of such facilities vis- -vis earlier approvals and their requirement in the zone. Accordingly, the above proposals were deferred. (vi) Request of M/s. Indian Oil Corporation Ltd. for co-developer in the port based SEZ at Puthuvypeen, Kerala developed by Cochin Port Trust. The Board decided to consider this item after conduct of the impending Assembly elections in the State of Kerala. (vii) Request of M/s. Hyderabad Infratech Private Limited for co-developer in the sector specific SEZ for IT/ITES at Gachibowli village, Serillingampally Mandal, R.R. District, Andhra Pradesh, being developed by M/s. Phoenix Infocity Private Limited. The representative of the D/o Revenue observed that from the co-developer agreement it appears that the developer is irrevocably assigning all its rights over the property. Further, the co-developer has also not provided a copy of the lease agreement. They, therefore, requested that the lease agreement needs to be examined to ensure that the transaction does not amount to sale of land, which is prohibited as per SEZ Act/Rules. The Board, after deliberations directed DC, VSEZ to examine the lease agreement and to submit a report for consideration of the Board before its next meeting. Accordingly, the proposal was deferred. (viii) Request of M/s. Pandit Deendayal Petroleum University for co-developer in Multi Product SEZ at Vagra, District Bharuch, Gujarat, being developed by M/s. Dahej SEZ Limited The Board observed that the status of the University is unclear. It sought clarification from DC, KASEZ regarding the status of the University being Government/Private and directed DC, KASEZ to confirm the status of the University and report to the Board. Accordingly, after deliberations, the proposal was deferred . (ix) Request of M/s. Samuha Engineering Industries Limited for co-developer in sector specific SEZ for Aerospace and precision engineering at Aditya Nagar, Adhibatla village, Ibrahimpatnam Mandal, Ranga Reddy District, Andhra Pradesh, being developed by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) The representative of D/o Revenue pointed out that the application submitted by M/s Samuha Engineering Industries Limited indicates that they specialize in manufacturing aircraft parts and have no expertise whatsoever in the development of infrastructure like power, water, sewerage etc. The nature of the activities of the co-developer should be clearly ascertained before approval is granted to ensure that it is not actually a manufacturing unit which is being set up in the SEZ in the garb of a co-developer agreement. DC, VSEZ, clarified that the developer, M/s APIIC have entered into a co-developer agreement with M/s Samuha Engineering for developing the infrastructure in roughly 40% of the total area of the SEZ and on this basis he has also recommended the proposal. Accordingly, after deliberations, the Board approved the request of M/s. Samuha Engineering Industries Limited for becoming a co-developer in the above mentioned SEZ, for development of infrastructure like power, water, sewerage, greenery and other common facilities over an area of 40.676 hectares in the above mentioned SEZ. Item No. 45.4: Request of M/s. Phoenix Techno City Private Limited a co-developer in the sector specific SEZ for IT/ITES at Gachibowli village, Serillingampally Mandal, R.R. District, Andhra Pradesh, being developed by M/s. Phoenix Infocity Private Limited, for withdrawal of co-developer status. The Board, after deliberations, approved the request of M/s. Phoenix Techno City Private Limited for withdrawal of co-developer status subject to the DC s certificate that the co-developer has refunded all the tax/duty benefits including service tax exemption, which might have been availed under the SEZ Act / Rules. Item No. 45.5: Request of M/s. TAPP Semiconductor India Private Limited, a codeveloper in the sector specific SEZ for Electronics/telecom hardware at SIPCOT Industrial Area, Sriperumbudur, Tamil Nadu, for setting up of FTWZ within the area to be developed as a co-developer. The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. Item No. 45.6: Request of M/s. Torrent Energy Limited (TEL) a co-developer in the multi-product SEZ at District Bharuch, Gujarat being developed by M/s. Dahej Special Economic Zone Limited, for increasing the capacity of the power plant from 1500 MW to 1600 MW The guidelines for power generation transmission and distribution in SEZs were issued by DoC on 27th February 2009. As per para (i) of these guidelines power plants may be set up by developer/co-developer in an SEZ as part of infrastructure facility in the non-processing area. The proposal was approved in the BoA meeting held on 22nd September 2008 and the approval had been granted by BoA, subject to the Power Guidelines being worked out that time. The Board, after deliberations, came to the conclusion that the issue requires further detailed examination and, accordingly, decided to defer the consideration of the proposal of M/s TEL. Department of Commerce would examine the entire issue on file and subsequently bring it before the Board for its consideration. Item No. 45.7: Request of M/s. Apollo Hospitals Enterprise Limited for authorized operations as co-developer in the manufacture and assembling of electronics, telecommunication and IT hardware and development of software, R D services and other services in telecommunication SEZ at Sriperumbudur, Tamil Nadu developed by M/s. Nokia India Private Limited The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. Item No.45.8: Requests for transfer/change of equity (i) Request of M/s. Aachvis Softech Private Limited, developer of the sector specific SEZ IT/ITES at Noida, Uttar Pradesh, for changing the shareholding of the company (ii) Request of M/s. Aachvis IT SEZ Infra Private Limited a co-developer in the sector specific SEZ IT/ITES at Noida, Uttar Pradesh, being developed by M/s. Aachvis Softech Private Limited, for changing the shareholding of the company (iii) Request of M/s. Standard IT Web Solutions Private Limited a co-developer in the sector specific SEZ IT/ITES at Noida, Uttar Pradesh being developed by M/s. Aachvis Softech Private Limited, for changing the shareholding of the company The representatives of D/o Revenue reiterated their objection that these transactions would amount to sale of the land, which is not permissible under the SEZ Act/Rules. Therefore, the Board, after deliberations rejected the above proposals. Item No. 45.9: Requests for Authorized Operations BoA considered the proposals for authorized operations and it is clarified that all approvals for authorized operations are subject to the development guidelines approved by EGoM in its meeting dated 24th October 2008, which was noted by the members of the BoA, and State Government Representatives in its meeting held on 8th December 2008. Accordingly, the DCs will ensure that all the authorized operations approved by the BoA, in this meeting, are in line with the guidelines. (i) Request of M/s. Arshiya Northern FTWZ Limited for authorized operations in FTWZ at village Ibrahimpur, Junaidpur, urf Maujpur, Tehsil Khurja, District Bulandshahar, Uttar Pradesh The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the processing/non-processing area of the SEZ, as given in the table: - In the Processing Area:- S. No. Authorised operations Quantum Requested Quantum Approved (in sqm) No. of units Area per unit (in sqm) as per FSI/FAR norms as applicable (1) (2) (3) (4) (5) 1. Open Storage Yards (a) Container Yard 1 65000 65000 (b) Over Dimensional cargo yard 1 14000 14000 (c) Empty Container Yard 1 2000 2000 (d) Maintenance Repairs Yard with Shed 1 5000 5000 (e) Scrap Yard 1 5500 5500 2. Destuffing Examination Yard 1 3000 3000 3. Transport System (a) Bus Shelters 6 10 60 (b) Helipad 1 6500 6500 (c) System for managing traffic (d) Material Vehicle in/out Ticketing Systems 1 NA NA (e) Vehicle Decision system and traffic Management System Software Hardware 1 NA NA 4. Public Conveniences (a) Food Services such as Cafeteria, food courts, restaurants, coffee shops, Canteens, catering facilities and kitchens 1 3000 3000 (b) Toilets 4 60 240 (c) Restrooms 1 250 250 (d) Basic Amenities Store (Groceries, Stationary etc) 1 150 150 5. Warehouse Management System (a) Goods/Container Tracking/Tracking system 1 NA NA (b) Warehouse Management Software 1 NA NA 6. Product Display Centre 1 5000 5000 In the Non-processing area S. No. Authorised operations Quantum Requested Quantum Approved (in sqm) No. of units Area per unit (in sqm) as per FSI/FAR norms as applicable (1) (2) (3) (4) (5) 1. Public Conveniences (a) Toilet 1 60 60 (b) Bus Terminals 1 500 500 (c) Work Shop 1 500 500 2. Administrative Building (to include) 1 5000 5000 (a) FTWZ Management Centre (b) Courier Office (c) Bank/ATMs (d) Internet Caf (e) Telephone booth (f) Post/Telegraph Office (g) Business Centre (h) Office for clearing agents, insurance companies shipping companies etc. (i) Stationary Zerox facility (j) Pantry canteen dinning area (k) Data centre (l) Poly clinic Pharmacy (m) Guest Room 1 1000 1000 3. Product Display Centre 1 1000 1000 4. Essential Maintenance Staff Housing and Dormitories (a) Staff Housing 4 units 600 (each unit having 12 tenements with average area of 50 sqm.) 2400 (b) Dormitories 1 No 1500 (150 beds each having an area of 10 sqm.) 1500 (ii) Request of M/s. L T Shipbuilding Limited for authorized operations in sector specific SEZ for Heavy Engineering at Kattuppalli village, Tiruvallur District, Tamil Nadu The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. (iii) Request of M/s. Dahej SEZ Limited for authorized operations in the multi-product SEZ at Vagra, District Bharuch, Gujarat The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the processing/non-processing area of the SEZ, as given in the table: - In the Processing Area] S. No. Authorised operations Quantum Approved (in sqm) 1. Construction of two fly over bridges in dedicated corridor between SEZ part I and SEZ Part II 4.66 KM In the Non-processing Area S. No. Authorised operations Quantum Approved (in sqm) 1. Port over a land of 14 hectares Port over 14 Ha (iv) Request of M/s. ONGC Limited, a unit in M/s. Dahej SEZ Limited for authorized operations in the multi-product SEZ at Vagra, District Bharuch, Gujarat The BoA perused the proposal and noted that the construction of the Helipad was essentially for emergency evacuation in case of a fire as the SEZ stores and processes highly inflammable gases. Accordingly, after deliberations, the Board decided to approve the authorized operations, in the processing area of the SEZ, as given in the table:- S. No. Authorised operations No. of units Area per unit (in sqm) as per FSI/FAR norms as applicable Total area (in sqm) 1. Helipad 1 NA 900 (30x30 m) The Board also directed that this approval shall not be treated as a precedent. (v) Request of M/s. Zeus Infrastructure Private Limited for authorized operations in sector specific SEZ for IT/ITES at Mulund Thane, Maharashtra The representative of D/o Revenue said that the proposal has provisions for providing housing to the Municipal Corporation free of cost. Further, the power project should be set up only as a unit in the processing area, the office space of 1.12 lakh sq. meters is very large and there is also a proposal for higher education institutes in the SEZs. The Board keeping in view the points raised by D/o Revenue decided to defer the consideration of the proposal and directed that DC SEEPZ may re-examine the proposals keeping in view the norms and the regulations and submit her reasoned recommendations for the consideration of the Board. (vi) Request of M/s. Indiabulls Realtech Limited, a co-developer in M/s. Indiabulls Industrial Limited for authorized operations in the multi-product SEZ at villages Musalgaon and Gulvanch, Taluka Sinnar, District Nasik, Maharashtra The Board was informed that the co-developer has already been granted approval for authorized operations for the first phase in the meeting held on 11th February 2010 and that the present request is for the following:- (i) Approval for the Authorized operations for the phase-II of the project; (ii) Quantum of goods required for phase-I II of the authorized operations; and (iii) Reduction in the quantum of land requirement for some of the authorized operations so as to bring it in line with the Ministry of Environment and Forests guidelines After deliberations, the Board approved the authorized operations for the phase-II, the quantum of goods required for Phase-I II and also permitted reduction in quantum of some of the authorized operations for Phase-I, after rationalization of the activities by the developer. The D/o Revenue was of the view that no tax exemption should be available for materials used for any operation carried out beyond the notified area of the SEZ. The Board decided that the exemptions available to the co-developer would be restricted to the part of infrastructure set up for carrying out authorized operations within the SEZ. Accordingly, the Board approved the following authorized operations in the non-processing area of the SEZ:- S.No. Authorized operations Quantum Approved for Ph-I (in Acres) Quantum Approved for Ph-II (in Acres) Total area for Ph-I II (in Acres) Total Quantity Approved for Ph-I II 1 Setting-up of the following Mechanical Systems: (i) 5 x 270 MW coal based Boiler, Turbine, Generator ( BTG) sets, their Auxiliaries including Boiler feed system, Condensers, Condensate Extraction pumps, HP/LP Heaters , Coal Mills RC feeders, Coal Bunkers, ID/FD/PA fans, Electrostatic precipitators Auto control systems etc. 52 52 104 10 Sets (ii) Coal Handling System including Wagon tipplers, Side arm chargers, Vibro feeders, Crushers, Stackercum- Reclaimer, Conveyer System, Dust extraction system, Railway Marshalling Yard etc. 70 70 140 2 Set (iii) Ash Handling System including ash slurry pumps, collector tanks, High Concentration Slurry Disposal( HCSD) System, Compressed Air System, Ash Slurry Pipe lines, Ash Silos for Dry Fly Ash disposal and Mill Reject System 9 9 18 2 Sets (iv) Water Treatment Plant including: (a) Pre-treatment Plant (Clarification System, Chemical House, Clariflocculator, Clarified Water Storage Tanks, PT Pumps , associated drives, tanks etc.) (b) DM Plant (Activated Carbon filters, Cation/Anion/ Mixed bed exchangers, Degasifier Towers, DM Water Storage tanks, DM pumps, associated Drives, Tanks etc.,) 3.5 Area available in Ph I. 3.5 (a) 2 Sets (b) 2 Sets (v) CW/ACW Pumps, CW Piping, Butterfly Valves RE Joints, CW Treatment Chlorination System, Condensate Polishing Unit ( CPU). 5 5 10 2 Sets (vi) Raw Water Pumping System including Pumps, Piping lines from STPs, Pump House, 33KV line Substation etc. 2 Acre + 10 mtr x 18 Km Common facility for Ph I II 2 Acre +Right of way for 10 mtr x 18 Km for Pipe line corridor to be obtained beyond plant area 1 Set (vii) Fuel Oil Receipt, Storage and Handling System (including pumps, associated drives, Tanks) 2.25 -do- 2.25 1 Set (viii) Air Conditioning System and Ventilation System including ducting etc 0.5 0.5 1.0 2 Sets (ix) Compressed Air system including Compressors, piping, Air vessels and driers etc. 0.75 0.75 1.5 2 Sets (xi) Hydrogen Generation Plant 0.25 Common facility for Ph I II 0.25 1 Set (xiii) Workshop Equipments 0.75 Common facility for Ph I II 0.75 1 Set 2 Electrical Works: (i) Power Transformers GT, ST, UAT ICT (Generator Transformers, Station Transformers, Unit Aux Transformers Interconnecting Transformers etc.) Included in respective systems Included in respective systems - Power Transformers: a) GT: 10 Sets b) ST: 6 Sets c) UAT:20 Sets d) ICT: 2 Sets (ii) Electrical Equipment for Balance of Plant (EBOP) including 400 KV Switchyard, Switchgears, Isolators, Lightening Arrestors, Protection System, Earthing, Towers, Busbar Gantries, Conductors, Insulators, Cables, SCADA System, Station lighting, Plant DG Sets etc. 40 Area available in Ph -I 40 2 Sets (iii) 400 KV Transmission lines including Sub-station Bays at CTU/STU end for Grid connectivity/Start-up power and Interconnecting transformers with associated switchgears etc for Transmission/Distribution of power in SEZ area. - 52 mtr x 100 Km (Transmission lines to be implemente d after obtaining right of way) - 52 mtr x 100 Km (Transmission lines to be implemented after obtaining right of way) - Right of way to be obtained beyond plant area for transmission corridor 2 Sets 3 Civil Works : (i) Site Leveling Grading Work 350 Acre 150 500 20 Lots (ii) BTG Civil Structural works Included in respective system - - 2 Lots (iii) General Civil Works for BOP, Misc. non-plant Buildings, Loco Shed etc. Included in respective system - - 2 Lots (iv) Chimney (including Stack Elevator, Electrical System, Aviation lighting, Earthing etc) Included in respective system - - 4 Sets (v) Cooling Towers 65 65 130 10 Sets (vi) Plant Water Reservoir including Gates/Screens etc. 39.5 Common facility for Ph-I II 39.5 1 Lot (vii) Ash Dyke and Ash Water Recovery System 196 -do- 196 1 Lot (viii) Construction of Railway siding, Embankment, Bridges, R.U.B. associated civil works, P. Way Works (laying of rails sleepers), Signaling Telecommunication, procurement of Locomotives 50 mtr x25 Km (land strip to be acquired beyond Plant area for connectivity with Railway network) 30 mtr x 25 Kms (land strip to be acquired beyond plant area for connectivity with Railway network) 80 mtr x 25 Km 2 Lots 4 Site Enabling Works : (i) Site Office including Porta Cabins, Furniture and Air Conditioning 5.5 Common facility for Ph I II 5.5 1 Lot (ii) Stores Steel Yard 22.5 -do- 22.5 1 Lot (iii) Field Quality Assurance Lab, Environment Chemical Labs complete with equipment. 0.2 -do- -0.2 3 Sets (iv) Road Weigh Bridge including cabin 0.12 0.12 0.24 2 Nos. (v) DG sets for site 0.25 0.25 0.5 10 Nos. (vi) Lighting masts (Mobile type) NA NA NA 10 Nos. (vii) Site Office Power arrangement (11 KV) 0.25 -do- 0.25 1 Lot (viii) Diversion of existing 220kV Lines at site 7.5 (Right of way beyond plant area) - - (Right of way beyond plant area) 1 Lot (ix) Laying of Construction Power system; 33/11 KV Substations LT Distribution System. Included in respective system Included in respective system - 1 Set Item No. 45.10: Request for change of sector/broad-banding the sector (i) Request of M/s. GMR Hyderabad Aviation SEZ Limited for change of sector of notified SEZ at Mamidipalli village, Hyderabad, Andhra Pradesh from Aviation to Multi Product-Airport Based The representative of Department of Revenue queried as to whether the current SEZ is a part of the existing airport. DC, VSEZ confirmed that the SEZ is not part of the Airport. The Board further observed that a multi-product SEZ is required to have a minimum land area of 1000 hectares. Therefore, after deliberation, the Board rejected the proposal for change of sector. Item No. 45.11: Requests for increase/decrease in area (i) Request of M/s. CMC Limited for increase as well as decrease in area of the sector specific SEZ for IT/ITES at village Gachibowli, Rajendra Nagar Taluk, Ranga Reddy District, Hyderabad, Andhra Pradesh After deliberation, the Board decided to approve the request of M/s. CMC Limited for addition de-notification of land admeasuring 0.78 hectares and 2.62 hectares respectively in the SEZ thereby making the total area of the SEZ as 18.74 hectares. The approval is also subject to the contiguity of the SEZ being maintained and the DC s certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act in respect of the area to be de-notified. Item No. 45.12: Requests for de-notification (i) Request of Maharashtra Industrial Development Corporation (MIDC) for denotification of the sector specific SEZ for Textile at Chincholi-Kati, Taluka Mohal, District Solapur, Maharashtra, notified over an area of 103 hectares After deliberations, the Board decided to approve the request of M/s. Maharashtra Industrial Development Corporation for de-notification of the sector specific SEZ for Textile at Chincholi-Kati, Taluka Mohal, District Solapur, Maharashtra, notified over an area of 103 hectares, subject to DC s certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act / Rules. Item No. 45.13: Requests for first extension of validity of formal approvals After deliberations, the Board decided to grant first extension of validity of formal approval in respect of each of the following 11 (Eleven) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. Uppals IT Projects Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Greater Noida, District Gautam Budh Nagar, Uttar Pradesh, beyond 16th March 2011. (ii) Request of M/s. Gallant Infrastructure Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. 202, Sector KP-5, Greater Noida, Uttar Pradesh, beyond 6th February 2011. (iii) Request of M/s. Jubilant Infracon Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. 03, Sector 140 A, Greater Noida, Uttar Pradesh, beyond 6th February 2011. (iv) Request of M/s. Anant Raj Industries Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. TP-1, Rai, Sonepat, Haryana, beyond 13th March 2011. (v) Request of M/s. Fama Estate Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at village Jatade and Savle, District Panvel, Maharashtra, beyond 17th February 2011. (vi) Request of M/s. Juventus Builders and Developers Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at village Savroli and Dhamni, Taluka Khalapur, District Raigarh, Maharashtra, beyond 12th February 2011. (vii) Request of M/s. Perpetual Infracon Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Faridabad, Haryana, beyond 3rd February 2011. (viii) Request of M/s. Unitech Hi-Tech Projects Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. 1, Sector 144, Noida, Uttar Pradesh, beyond 14th February 2011. (ix) Request of M/s. IFFCO Kisan SEZ Limited for extension of the validity period of formal approval, granted for setting up of Multi Product SEZ at Nellore District, Andhra Pradesh, beyond 4th May 2011. (x) Request of M/s. Rassai Properties Industries Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Multi Services at Hindupur, Anantapur District, Andhra Pradesh, beyond 3rd February 2011. (xi) Request of M/s. Ansal Colours Engineering SEZ Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Agro and Food processing Products at village Bhagan, Tehsil-Ganaur (Sonepat) and village Kurar Ibrahimpur, Tehsil-Sonepat on NH-1, Haryana, beyond 17th June 2011. The Board, however, deferred consideration of the following 07 (seven) requests due to forthcoming elections in the respective States:- (i) Request of M/s. Bengal Shapoorji Infrastructure Development Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Durgapur, District Burdwan, West Bengal, beyond 24th June 2011. (ii) Request of M/s. Haldia Free Trade Warehousing Private Limited (HFTWPL) for extension of the validity period of formal approval, granted for setting up of FTWZ at Haldia, West Bengal, beyond 17th February 2011. (iii) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Jagir Ammapalayam village, Salem Taluk, Salem District, Tamil Nadu, beyond 25th July 2010. (iv) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Vadapalanji village Madurai District, Tamil Nadu, beyond 25th July 2010. (v) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Viswanathapuram village, Hosur Taluk, Krishnagiri District, Tamil Nadu, beyond 25th July 2010. (vi) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Navalpattu village Tiruchirapalli Taluk, Tiruchirapalli District, Tamil Nadu, beyond 25th July 2010. (vii) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Ilandaikulam village, Madurai District, Tamil Nadu, beyond 25th July 2010. Item No.45.14: Requests for second extension of validity of formal approvals After deliberations, the Board decided to grant second extension of validity of formal approval in respect of each of the following 09 (Nine) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. N.G. Realty Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Engineering at village Rajoda, District Ahmedabad, Gujarat, beyond 22nd May 2011 (ii) Request of M/s. Mangalore SEZ Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Pharmaceuticals and Petroleum at Baikampady, near Mangalore, Dakshina Kannada District, Karnataka, beyond 29th July 2011 (iii) Request of M/s. Zeus Infrastructure Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Mulund Thane, Maharashtra beyond 20th June 2011 (iv) Request of M/s. Biotor Industries Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Agro based Chemicals at village Vilayat, Taluka Vagra, District Bharuch, Gujarat, beyond 22nd May 2011 (v) Request of Kandla Port Trust for second extension of the validity period of formal approval, granted for setting up of Port based Multi Product SEZ at Kandla and Tuna, Gandhidham, Bhuj District, Gujarat, beyond 6th May 2011 (vi) Request of M/s. Concord Investment for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Devanahalli Taluk, Bangalore Rural District, Karnataka, beyond 12th November 2011 (vii) Request of M/s. Ranbaxy Laboratories Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Pharmaceuticals at Mohali, Punjab, beyond 18th June 2011 (viii) Request of M/s. International Biotech Park Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Hinjewadi, District Pune, Maharashtra, beyond 24th October 2010 (ix) Request of Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Karakapatla village, Mulugu Mandal, Medak District, Andhra Pradesh, beyond 25th October 2011 The Board, however, deferred consideration of the following 03 (Three) requests due to forthcoming elections in the respective States:- (i) Request of M/s. Parsvnath SEZ Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Nedumbassery and Chengamanadu villages, Aluva Taluk, Ernakulam District, Kerala, beyond 25th October 2010 (ii) Request of Electronic Corporation of Tamil Nadu Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Vilankurichi, Coimbatore North Taluk, Coimbatore, Tamil Nadu, beyond 15th June 2010 (iii) Request of M/s. Cochin Port Trust for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Port based at Puthuvypeen Ernakulam District, Kerala, beyond 17th April 2011 Item No.45.15: Request for third extension of validity of formal approvals After deliberations, the Board decided to grant second extension of validity of formal approval in respect of each of the following 03 (Three) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. Gujarat Hira Bourse for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Gems and Jewellery at Ichhapor, Surat, Gujarat beyond 6th April 2011 (ii) Request of Gujarat Industrial Development Corporation for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for EHTP/IT/ITES at Gandhinagar, Gujarat, beyond 12th July 2011. (iii) Request of M/s. Ansal IT City Parks Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. TZ-06, Tech Zone, Greater Noida, Uttar Pradesh, beyond 6th April 2011 Item No. 45.16: Requests for grant of second extension of in-principle approval. There were four proposals for grant of second extension of in-principle approval of which following three have been deferred on account of elections being held in the respective states:- (i) Request of M/s. Tirunelveli Infrastructure Developers Private Limited for second extension of in-principle approval, granted for setting up of Multi Product SEZ at Khaitar village, Tirunelveli District, Tamil Nadu beyond, 26th February 2010. (ii) Request of M/s. Karaikal Port Private Limited for second extension of in-principle approval, granted for setting up of Port Based Multi Product SEZ at Vanjore village, Thirupattinam Commune, Karaikal District, Pondicherry beyond, 26th February 2011. (iii) Request of M/s. Trac Technologies India Limited for second extension of in-principle approval, granted for setting up of sector specific SEZ for Multi Services at Krishnagiri District, Tamil Nadu, beyond 26th February 2011. In respect of the M/s. Gujarat Vittal Innovation City Limited (GVICL), DC KASEZ indicated that the Gujarat Government has raised certain issues and has stopped acquisition of land. The Board deferred consideration of the item till its next meeting and directed DC KASEZ to submit his report for its consideration. Item No. 45.17: Request of M/s. Arihant Infratech (India) Private Limited for grant of second extension of in-principle approval and change of location of the sector specific SEZ for Building Materials The Board noted that the present proposal is for change of location from Udaipur District, Rajasthan to Udaipur and Chittorgarh Districts, Rajasthan. Though the developer has sought extension of in principle approval, it is in respect of the earlier location for which they were granted approval. The developer must obtain State Government approval for change of location and must apply afresh for a Letter of Approval for a new SEZ. The Board, accordingly disposed off the present proposal for second extension in the validity period of the Letter of Approval. Item No. 45.18: Requests for grant of third extension of in-principle approval After deliberations, the Board granted third extension of the validity of the inprinciple approval for a period of one year beyond the expiry of the validity of the last extension in r/o the following cases:- (i) M/s. Reliance Haryana SEZ Limited for setting up of Multi Product SEZ, over an area of 5000 hectares, at Jhajjar District, Haryana (up to 14th February, 2012) (ii) M/s. LMJ Warehousing Private Limited for setting up of FTWZ, over an area of 40 Ha, at Kandla, Gujarat (up to 10th January 2012) (iii) M/s. Rewas Port Limited for setting up of Multi Product SEZ, over an area of 2850 Ha, at Rewas District, Raigarh, Maharashtra (up to 25th June 2011) Item No. 45.19: Request for M/s. Reliance Haryana SEZ Ltd. (RHSL) for setting up of multi product SEZ at Gurgaon, Haryana for grant of extension of in-principle approval The Board noted that the developer has sought extension of the LoA up to 31st March 2015. Though the developer possesses more than 1000 hectares presently, the land is not contiguous. In December 2009 when the developer came up for extension the Board decided to give de-novo approval from the expiry of the last extension subject to the developer getting State Government recommendation, which has not been made available. However, recently the SEZ Rules have been amended to enable the Board to sanction extensions of in-principle approval beyond initial validity without restrictions. Keeping in view the circumstances of developer the Board decided to extend the validity of the LoA up to 31st March 2012. Item No.45.20: Consideration of the withdrawal of formal approval granted to M/s. Unitech Kochi SEZ Limited for setting up of sector specific SEZ for IT/ITES at Ernakulam, Kerala The Board decided to consider this item after conduct of the impending Assembly elections in the State of Kerala. Item No.45.21: Requests for withdrawal of formal approval (i) Withdrawal of formal approval granted to M/s. Gujarat Hydrocarbons and Power SEZ Limited for setting up of sector specific SEZ for Energy including New and Renewable Energy at Vilayat, Taluka Vagra, District Bharuch, Gujarat The Board decided to approve the request of M/s. Gujarat Hydrocarbons and Power SEZ Limited for withdrawal of formal approval granted to them for setting up of sector specific SEZ for Energy including New and Renewable Energy at Vilayat, Taluka Vagra, District Bharuch, Gujarat, over an area of 108 hectares, subject to DC s certificate that the developer has not availed any tax/duty benefits under the SEZ Act / Rules. (ii) Withdrawal of formal approval granted to M/s. Mexus Corporation Private Limited for setting up of sector specific SEZ for Electronic Hardware, Software including IT/ITES at Chala, Taluka Pardi, Valsad District, Gujarat The Board decided to approve the request of M/s. Mexus Corporation Private Limited for withdrawal of formal approval granted to them for setting up of sector specific SEZ for Electronic Hardware, Software including IT/ITES at Chala, Taluka Pardi, Valsad District, Gujarat, over an area of 11.11 hectares, subject to DC s certificate that the developer has not availed any tax/duty benefits under the SEZ Act / Rules. Item No. 45.22: Request of M/s. La Spirit Liquor Trading Co., KASEZ for broad banding/inclusion of Cigarettes in their existing Letter of Approval The representative of D/o Revenue pointed out that this unit has been approved for trading activity of various types of liquor by KASEZ. The current proposal is for inclusion of cigarettes in their trading activity. D/o Revenue is not keen to encourage setting up of units for manufacturing/trading of cigarettes. DC KASEZ pointed out that this unit will not be manufacturing cigarettes but will only be trading in them after importing the same. Further, the unit will supply the cigarettes to the Duty Free Shops and to the Foreign Vessels calling at Kandla and Mundra Ports and will not be selling the same in DTA and nor will they be procuring cigarettes from DTA. After deliberations, the Board approved the request of the unit for trading of Cigarettes (covered under ITC-HS 2402) subject to the following conditions:- (i) No DTA procurement of Cigarettes shall be made by the unit; (ii) There will be no DTA sale of cigarettes (iii) The Cigarettes shall be supplied only to Bonded Warehouses, Foreign Vessels calling at Kandla Port and Mundra Port and the duty free shops in these ports. The DC, KASEZ will have to build in adequate safeguards for ensuring that there are no leakages and will have to ensure compliance of the above conditions by the unit. Item No. 45.23: Request of M/s. Huawei Telecommunication (India) Private Limited setting up an unit in SEZ for manufacture of telecom/information technology equipments The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. Item No. 45.24: Requests of SEZ units for import of prohibited items (i) Request of M/s. Biomax Fuels Limited, a Unit in VSEZ, for import of used cooking oil DC, VSEZ said that the unit initially depended on crude palm oil for manufacture of bio diesel. However, with the prices of crude palm oil going up considerably, the manufacture of Biodiesel through this route became unviable. Accordingly, the unit decided to import used cooking oil for manufacture of Biodiesel. The catchment area for used cooking oil will be Middle East where the cooking oil is discarded after single use and collection of such oil is much easier. In countries including India, the cooking oil is used many times and is not available in sufficient quantities for easy collection. This unit has already invested around Rs. 170 crore in plant and machinery and the proposal for importing used cooking oil can be considered. The representative of the Unit was also heard by the Board. The Board, after deliberations, approved the request of the unit for import of used cooking oil for manufacturing Biodiesel, subject to the condition that:- (i) The imported cooking oil shall have to be exclusively used for manufacturing of Biodiesel and export thereof. (ii) No DTA transaction shall be allowed. DC, VSEZ shall have to ensure compliance of the above conditions by the unit. (ii) Request of M/s. Southern Online Biotechnologies Limited, a Unit in APIIC SEZ, at Atchutapuram Mandal, Visakhapatnam, Andhra Pradesh for import of Tallow/Tallow oil The representative of the Department of Revenue noted that they have strong reservations about import of Mutton Tallow and Tallow Oil for manufacture of Biodiesel. After deliberations, the Board decided to reject the request of the unit for import of Mutton Tallow (HS code 15020010) and Tallow Oil (HS code 15030000) for manufacturing Biodiesel. Item No. 45.25: Proposal of M/s. Keshwani Exim Pvt.Ltd. for setting up unit in KASEZ for Trading activity of raw salt, Industrial salt, refined free flow Iodized salt, Sugar Grains, Pulses, Spices, Cereals Flour and Honey. The DC, KASEZ had originally requested for approval in r/o sugar, pulses, spices, cereal flour. During the meeting he clarified that the UAC is empowered to take a decision in r/o Sugar Spices, therefore, approval is required in respect of Pulses Cereals Flour. The BoA emphasized that proposals involving consumable items like sugar, pulses, spices, cereals etc. need careful examination so that their domestic availability is not affected. After deliberations the Board approved the request of the unit for trading of Pulses (HS Code No. 07131000, 07132000, 07133910, 07133990) and Cereals Flour (HS Code No. 11021000, 11022000, 11029000), subject to the condition that:- (i) Above items shall be imported from outside India and no procurement shall be made from DTA till prohibition on export of these item continues in Foreign Trade Policy (FTP) (ii) A Mechanism shall be put in place by DC, KASEZ so that DTA procurement of raw-materials by the unit is strictly monitored. Item No. 45.26: Requests for extension of LoP of units beyond 3rd year (i) Request of M/s. Godrej Boyce Manufacturing Company Limited, a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP beyond 29th May 2010 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 29th May, 2011). Item No. 45.27: Requests for extension of LoP of units beyond 4th year (i) Request of M/s. Oil and Natural Gas Corporation Limited C2-C3 Project Dahej, a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP beyond 5th March 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 5th March, 2012). (ii) Request of M/s. Circuit Systems (India) Limited, a unit in the sector specific SEZ for Electronic developed by Gujarat Industrial Development Corporation (GIDC) at Gandhinagar, Gujarat for extension of LoP beyond 13th March 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 13th March, 2012). Item No. 45.28: Requests for Contiguity Relaxation (i) Request of M/s. Raheja Haryana SEZ Developers Private Limited, for relaxation of the contiguity of the sector specific SEZ for Engineering at Gurgaon, Haryana The Board considered the report of DC, NSEZ on this issue, placed before it as per its directions in the meeting held on 18th November, 2010. The Board noted that in the report it was brought out that there are 04 (Four) revenue raastas in the proposed non-processing area and one revenue raasta in the processing area of the SEZ, thus causing a serious contiguity issue. DC, NSEZ also informed the Board that at the time of notification the developer had given an undertaking that in the event of revenue raastas passing though the SEZ, it will give an alternate way to the users from outside the SEZ area. However, the developer has not been able to do this till date. DC, NSEZ, therefore, informed the Board that he is not supporting the proposal. The board, therefore, after deliberations decided to reject the request of the developer for relaxation of contiguity. The Board also directed DC, NSEZ to examine the matter and recommend consequent action. (ii) Request of M/s. Wellgrow Buildcon Pvt. Ltd., Haryana for relaxation of contiguity The Board considered the report of DC, NSEZ, on this issue, placed before it as per its directions in the meeting held on 18th November, 2010. The Board noted that the two private raastas passing through the proposed SEZ are not revenue raastas. These private raastas have been provided as right of way to the other s man land by mutual understanding. DC, NSEZ also informed the Board that the developer and private individuals jointly hold the right over the private raasta and also that these private raastas are not meant for public thoroughfare and are meant only for private use of the land owners who have given their no objection for construction of underpass below the said private raastas to achieve contiguity. DC, NSEZ also informed that the developer has revised the development plan and as per the revised plan, the two Private Rastas are passing through the non-processing zone only. DC, NSEZ further stated that in its meeting held on 8th June, 2008 that BoA had agreed in principal to relax contiguity if any public utility services such as roads, water supply lines, sewerage lines, drains, canals or railway lines are passing through the non-processing area of the zone. The Board, therefore, after deliberations decided to allow the developer to establish the contiguity in the proposed SEZ by making underpasses subject to the following conditions:- (i) The developer shall have to construct boundary walls along the private raastas to prevent their users from having any access to the SEZ. (ii) No duty free materials shall be provided for establishing contiguity. Since it is a case of an IT/ITES SEZ involving a small area of 10 hectares, this approval shall not to be treated as a precedent. Item No. 45.29: Requests for M/s. Sparrow Television Private limited, a unit in the Hi- Tec SEZ being developed by SIPCOT at Sriperumbudur, Tamil Nadu, for permission for carrying our manufacturing in job work basis for DTA units. The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. Item No. 45.30: Application for grant of Industrial Licence for M/s. R.R. Texknit Private Limited for manufacture of Bullet Proof Jacket, Bullet Proof vest, Bullet Proof Helmets, Hard Armour Plate Bomb Blanket. After deliberations the Board approved the proposal of M/s. R.R. Texknit Private Limited for setting up a defence production unit in the NSEZ for manufacture of Bullet Proof Jacket, Bullet Proof vest, Bullet Proof Helmets, Hard Armour Plate Bomb Blanket subject to the guidelines and the following conditions: (i) In terms of Section 9 of the SEZ Act, 2005, BoA is the Licensing Authority for setting up of defence units in SEZs. Once a proposal has been approved by the BoA, the licence will be issued by DIPP on receipt of the minutes of BoA. (ii) Exports of such items may be regulated as per the provisions of Foreign Trade Policy and ITC (HS) Code. (iii) The licensing conditions will be finalized in consultation with the DIPP, the Department of Defence Production and the Ministry of Home Affairs. This is because the special conditions incorporated for industrial licenses for the defence sector have been incorporated by DIPP on the recommendations of the Department of Defence Production, which in turn, consulted the Ministry of Home Affairs in the matter. (iv) Each of the consignment of supply to DTA must be thoroughly examined by DC; (v) While selling in the domestic area, only Government Agencies would be allowed to procure the equipments; (vi) All consignment will be accompanied by an authorized person of the Government procuring agency. Item No. 45.31: Request of M/s. SFO Technologies Private Limited, a unit in Cochin Special Economic Zone (CSEZ) for permission to broadband LoA to include items to be supplied to defence units under defence offset facilitation agency (DOFA). The Board decided to consider this item after conduct of the impending Assembly elections in the State of Kerala. Item No. 45.32: Request of M/s. JSL Limited for submission of Bond/Bank Guarantee in respect of liability arising on cancellation of Form-I under the Central Sales Tax, 1956 in respect of liability pertaining to Entry Tax. The representative of Department of Revenue indicated that the BoA has agreed to de-notify the SEZ subject to all the benefits being returned by the developer. DC has indicated that all the dues except the CST have been returned by the developer. The BoA noted that the outstanding dues of the developer/units have not been quantified by the concerned authorities. Therefore, the BoA decided that the developer must settle all dues with the concerned agencies prior to de-notification. Any other approach could potentially lead to loss of revenue, hence, the request was not approved. Item No. 45.33: Request of M/s. Hansen Drives Limited, a unit in Synefra Engineering Construction Limited SEZ, Tamil Nadu for grant of approval for undertaking repair/reconditioning etc. of defective gear box units manufactured by third party (Indian and overseas) manufacturers. The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. Item No. 45.34: Appeals before BoA (i) Appeal of M/s. Erba Diagnostics Mannheim GmbH against rejection of the request for setting up a unit, in SEEPZ Special Economic Zone, Mumbai. The Board was informed that the appellant is unable to appear before it due to some unavoidable reasons and has, therefore, requested deferment of the appeal till its next meeting. Accordingly, the appeal was deferred. (ii) Appeal of M/s. Polychem Adhesives Private Limited, a unit in Surat SEZ, against rejection of its request for extension of the validity of its LoP. (iii) Appeal of M/s. Marval India, a unit in Surat SEZ, against rejection of its request for extension of the validity of its LoP. The representatives of each the units appeared before the Board and apprised the Board about the steps taken by them towards operationalisation of their projects and also requested the Board for grant of last extension keeping in view the large investments already made by them. The Board taking into account the submissions of the units and also the amendment in Rule 19(4) of SEZ Rules, 2006 by virtue of which the units are being granted extensions beyond 4th year, decided to grant one more opportunity to both the units. Accordingly, after deliberations, the Board extended the LoP of both the unit up to 31st December, 2011. (iv) Appeal of M/s. Hansen Drives Limited, a unit in Synefra Engineering Construction Limited SEZ, Tamil Nadu, against the order of DC, MEPZ, rejecting its request for broad banding of LoP to include trading activity as part of authorized operations. (v) Appeal of M/s. SE Electricals Ltd. against the order of Development Commissioner, MPEZ SEZ rejecting its request for removal of waste and scrap in DTA which were arisen out of repair/re-engineering and reconditioning of generators/control panels at appellants factory. The Board decided to consider the above appeals after conduct of the impending Assembly elections in the State of Tamil Nadu. Decisions on the Supplementary Agenda Item No. 45.35: Proposal for setting up of SEZs (i) Proposal of M/s. SmartCity (Kochi) Infrastructure Private Limited for setting up of a sector specific Special Economic Zone for IT/ITES at Puthencruz village, Kunnathunadu Taluk, Ernakulam District, and Kakkanad village, Kanayannur Taluk, Ernakulam District, Kerala, over an area of 46.3773 hectares The Board decided to consider this item after conduct of the impending Assembly elections in the State of Kerala. Item No.45.36: Request for co-developer (i) Request of M/s. ACN Infotech (India) Pvt. Ltd. for co-developer in the sector specific SEZ for IT/ITES at Madhurwada, Andhra Pradesh, being developed by Andhra Pradesh Industrial Infrastructure Corporation (APIIC) The Board sought clarification from the DC, VSEZ on the status of vacancy of the land leased to the co-developer and also as to whether M/s ACN Infotech (India) Private Limited has any interest as a unit in the SEZ. Accordingly, the proposal was deferred and DC, VSEZ was directed to submit his fresh recommendations in light of the above observations. Item No. 45.37: Request for first extension of validity of formal approval After deliberations, the Board decided to grant first extension of validity of formal approval in respect of the following developer for a period of one year beyond the expiry of the validity period: (i) Request of M/s. Uppal Housing Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware Software IT/ITES at Plot No. 8, Knowledge Park V, Greater Noida, District Gautam Budh Nagar, Uttar Pradesh, beyond 14th February 2011 Item No. 45.38: Requests for increase/decrease in area (i) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for addition of area in the sector specific SEZ for IT/ITES at Gangaikondan village, Tirunelveli District, Tamil Nadu The Board deferred consideration of the proposal till the conduct of the election of the Legislative Assembly of the State of Tamil Nadu. (ii) Request of M/s. Manyata Promoters Private Limited for addition of area in the sector specific SEZ for Electronics Hardware and Software including IT/ITES at Rachenhalli and Nagavara villages, Hobli, Outer ring Road, District Bangalore, Karnataka After deliberations, the Board decided to approve the request of M/s. Manyata Promoters Private Limited for increasing the area of the SEZ by adding 5.0917 hectares to the already notified SEZ area, thereby making the total area of the SEZ as 26.1937 hectares. Item No. 45.39: Requests for extension of LoP of units beyond 3rd year (i) Request of M/s. Glomet Technologies Private Limited, a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP beyond 2nd March 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 2nd March, 2012). Item No. 45.40: Request for extension of LoP of unit beyond 4th year (i) Request of M/s. Hobel Bellows, a Unit in VSEZ, for extension of validity period of LoP for one more year beyond fourth year beyond 22nd April, 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 22nd April, 2012). Item No. 45.41: Request of SEZ unit for import of prohibited/restricted items (i) Request of M/s. Roxul-Rockwool Insulation India Private Limited, a Unit in Dahej SEZ, for import of Un-granulated Slag, a restricted item After deliberations the Board approved the request of M/s. Roxul-Rockwool Insulation Private Limited for importing the following prohibited/restricted items, subject to the condition that the all the items shall be imported from outside India and no procurement will be made from DTA till prohibition/restriction on exports/imports of such items continues in Foreign Trade Policy (FTP). Further, the finished product made from this raw-material will be completely exported and no DTA sale will be allowed- Exim Code Item Description 2619 Slag, Dross (other than granulated slag), scaling and other waste from the manufacture of iron and steel 2619 00 10 Slag, Dross (other than granulated slag), scaling and other waste from the manufacture of iron and steel 2619 00 10 Converted slag (scull) of blast furnace 2619 00 90 Other The Board also directed DC to put in place a mechanism so that DTA procurement of raw-materials by the unit is strictly monitored. Item No. 45.42: Request for extension of validity of LoP Plastic processing units (i) Renewal of LoP for next 5 years in respect of M/s. Plastic Processors Exporters Private Limited, a unit in NSEZ After deliberation the Board extended LoP of the unit for a further period of 06 (Six) months from the date of expiry of the validity of the extension (i.e. w.e.f. 31.3.2011). The approval is, however, subject to the condition that the unit shall have to abide by the outcome of the final policy for the plastic re-processing units in the SEZs, under examination by DoC. The Chairman, BoA also directed for finalization of the policy for the plastic reprocessing units in the SEZs at the earliest. Decision on the Table Agenda Item No. 45.43: Sale of residential flats by Reatox Builders and Developers Private Limited, a co-developer in the Multi Product SEZ at Nagpur, Maharashtra being developed by M/s. Maharashtra Airport Development Company Limited (MADC). The Board was informed by DC, MIHAN that the developer of MIHAN SEZ has permitted the co-developer to construct and sell residential flats in the non-processing area of the SEZ to persons not connected with the SEZs. The Board took a serious view on the sale of flats proposed by M/s Reatox Builders and Developers Pvt. Limited to general public which is not permitted under the SEZ Scheme. Accordingly, the Board directed DC MIHAN to take strict action directly and through the agencies concerned in the matter and submit a report. The meeting ended with a vote of thanks to the Chair. Annexure - 1 List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 25th March, 2011 under the Chairmanship of Commerce Secretary, Department of Commerce 1. Dr. Rahul Khullar, Chairman BOA Secretary, Department of Commerce. 2. Smt. Praveen Mahajan, Director General (DG), Department of Revenue, Ministry of Finance 3. Shri Raman Chopra, Director (ITA), CBDT, Department of Revenue, Ministry of Finance 4. Shri Vivek Ranjan, Additional Director, Department of Revenue, Ministry of Finance 5. Shri S.K. Sinha, Additional Director, DGEP, Department of Revenue, Ministry of Finance. 6. Dr. L. B. Singhal, Joint DGFT, Director General of Foreign Trade 7. Shri Sanjeev Nandwani, Joint DGFT, Kolkata 8. Shri Suresh Kumar K. Secretary Information Technology (IT), Government of Kerala 9. Shri R.J. Shah, CEO, Dahej SEZ, Government Gujarat 10. Shyamal Misra, Director, Department of Industry and Policy Promotion 11. Shri O.P. Sharma, Scientist-E, Department of IT 12. Shri A. K. Gupta, General Manager, RIICO. 13. Shri Manjunath Gonda, Resident Director, Karnataka Udyog Mitra 14. Shri S. K. Rathore, Resident Commissioner, Government of Orissa 15. Shri Wazir Singh, Additional Director, Government of Haryana, Industries Commerce Department 16. Shri Nilesh Sharma, Office of the Resident Commissioner, Government of Gujarat 17. Shri Sudeep Roy, Assistant Town Country Planer, TCPO, Ministry of Urban Development 18. Shri R.D. Meena, Research Assistant, TCPO, Ministry of Urban Development LIST OF DEVELOPMENT COMMISSIONERS 19. Shri M.S. Rao, Development Commissioner, VSEZ, Visakhapatnam, Andhra Pradesh 20. Smt. Anita Agnihotri, Development Commissioner, SEEPZ SEZ, Mumbai 21. Shri Suresh Chandra Panda, Development Commissioner, Noida SEZ, Uttar Pradesh 22. Shri Vijay N. Shewale, Development Commissioner, Surat SEZ, Surat 23. Shri C. J. Mathew, Development Commissioner, CSEZ, Kochi. 24. Shri S. Kishore, Development Commissioner, AP SEZ 25. Shri Pravir Kumar, Development Commissioner, KASEZ Dahej SEZ 26. Shri Upendra Vasishth, Development Commissioner, Reliance SEZ, Jamnagar, Gujarat 27. Smt. Lata Shukla, Development Commissioner, Mundra SEZ 28. Shri K.L. Sharma, Development Commissioner, Sterling SEZ, Gujarat 29. Shri Ved Prakash, Development Commissioner, Mihan SEZ 30. Shri Anil Bamba, Development Commissioner, Sricity SEZ 31. Smt. Swarna. S., Joint Development Commissioner, MEPZ SEZ, Chennai 32. Shri A.K. Rathore, Joint Development Commissioner, ISEZ, Indore, Madhya Pradesh. 33. Shri Sudhir. K. Aggarwal, Additional Director Office of Development Commissioner (MSME), Ministry of MSME. LIST OF PARTICIPANTS OF DEPARTMENT OF COMMERCE 34. Shri Anup Wadhawan, Joint Secretary, Department of Commerce. 35. Shri T. Srinidhi, Joint Secretary, Department of Commerce 36. Shri Sanjeet Singh, Director, Department of Commerce 37. Shri R. K. Pandey, Under Secretary, Department of Commerce 38. Shri Achint Kumar, Section Officer, Department of Commerce