Minutes of the 74th meeting of the Board of Approval for SEZ held on 6th January 2017 to consider setting up of Special Economic Zones and other miscellaneous proposals - SEZ - Minutes of the 74th meeting of the SEZ

Minutes of the 74th meeting of the Board of Approval for SEZ held on 6th January 2017 to consider setting up of Special Economic Zones and other miscellaneous proposals The Seventy Fourth (74th) meeting of the Board of Approval (BoA) for Special Economic Zones (SEZs) was held on 6th January, 2017 under the Chairpersonship of Ms. Rita Teaotia, Secretary, Department of Commerce, at 11.00 A.M. in Room No. 47, Udyog Bhawan, New Delhi to consider the proposals in respect of notified/approved SEZs. The list of participants is Annexed ( Annexure-1 ). Item No. 74.1: Requests for extension of validity of formal approvals (11 proposals) BoA in its meeting held on 14th September, 2012, examining similar cases observed as under: - The Board advised the Development Commissioners to recommend the requests for extension of formal approval beyond 5 th year and onwards only after satisfying that the developer has taken sufficient steps towards operationalisation of the project and further extension is based on justifiable reasons. Board also observed that extensions may not be granted as a matter of routine unless some progress has been made on ground by the developers. The Board, therefore, after deliberations, extended the validity of the formal approval to the requests for extensions beyond fifth years for a period of one year and those beyond sixth year. for a period of 6 months from the date of expiry of last extension . (i) Request of M/s. Tata Steel Special Economic Zone Ltd. for further extension of validity period of its formal approval for setting up a multi product SEZ at Gopalpur, District Ganjam, Odisha beyond 17th December, 2016 The Board, after deliberations, extended the validity of the formal approval up to 17th December, 2017. (ii) Request of M/s. G.P. Realtors Private Limited for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware IT/ITES at village Behrampur, Balola and Bandhwari, Tehsil Sohna, Gurgaon, Haryana, beyond 25th January, 2017 The Board, after deliberations, extended the validity of the formal approval up to 25 th January, 2018. (iii) Request of M/s. Mittal Infratech Pvt. Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Village Sewah, GT Road, District Panipat, Haryana, beyond 23 rd February, 2016 The Board, after deliberations, deferred the proposal with the direction to Development Commissioner NSEZ to give personal hearing to the developer and ascertain specific reasons for delay. Thereafter, DC NSEZ will give his recommendation along with details of substantial development in the SEZ along with supporting documents for consideration of the BoA. (iv) Request of M/s. Radiant Corporation Pvt. Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware Software and related activities at Plot No. 20, Muppireddypally village, Toopran Mandal, Medak District, Telangana, beyond 4th January, 2017 The Board, after deliberations, extended the validity of the formal approval up to 15th March, 2017. (v) Request of M/s. Tata Consultancy Services Limited for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Indore, Madhya Pradesh, beyond 28 th February, 2017 The Board, after deliberations, extended the validity of the formal approval up to 28th February, 2018. (vi) Request of M/s. Frontier Lifeline Pvt. Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Edur Elavur Village, Gummidipoondi Taluk, Thiruvallur District, Tamil Nadu, beyond 27th November, 2016. The Board, after deliberations, extended the validity of the formal approval up to 27th November, 2017. (vii) Request of M/s. Rudradev Township (P) Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Cholankurini village, Madurai, Tamil Nadu, beyond 25 th July, 2014 The Board, after deliberations, condoned the delay and extended the validity of the formal approval up to 31 st July, 2018. At the request of DC, NSEZ, the agenda no 74.6 (vii) regarding the proposal of M/s. Mahindra World City (Jaipur) Ltd. for merger of its five SEZs was also taken up together with agenda items no 74.1 (viii) and 74.1 (ix) regarding the proposals for the extension of formal approvals in respect of two SEZs of M/s. Mahindra World City (Jaipur) Ltd. 74.6 (vii) Proposal of M/s. Mahindra World City (Jaipur) Ltd. for merger of its five SEZs (IT/ITES SEZ, Engineering Related Industries SEZ, Handicraft SEZ, Gem Jewellery SEZ IT/ITES including Software Hardware manufacturing SEZ) located at Village Kalwara, Jhai Bhambhoriya, Bagru Khurd Newta, Tehsil Sanganer, District Japur, Rajasthan into one multi product SEZ It was informed that the developer had originally applied for a single integrated SEZ in 2006 in an area of 2500 acres (letter from Govt of Rajasthan as provided by RIICO enclosed). However, since at that time minimum land requirement for such SEZ was 1000 ha (2500 acre) and the same was not in possession of the developer, they could not meet this requirement and therefore, they applied for separate sector-specific SEZs. However, later in 2013, the requirement for multi-product SEZ has been revised to 500 ha. Total land area of five SEZs is 604.5836 ha. Therefore, the developer has proposed for merger of these sector-specific SEZs into one multi-product as originally envisaged. It was observed that at present three SEZs are operational. In view of this, the Board, after deliberations, approved the proposal under Rule 5 (2) (d) of SEZ Rules, 2006 . Further, the Board directed the developer to maintain contiguity in the merged SEZ by complying with the conditions laid down on Instruction No. 27 dated 18.08.2009 issued by the Department of Commerce. 74.1. (viii) Request of M/s. Mahindra World City (Jaipur) Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES including Software Hardware Manufacturing at Village Kalwara, Tehsil Sanganer, District Jaipur, Rajasthan, beyond 3 rd January, 2017. The Board, after deliberations, extended the validity of the formal approval up to 2 nd January 2018. (ix) Request of M/s. Mahindra World City (Jaipur) Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Gems Jewellery at Village Bhamboriya, Tehsil Sanganer, District Jaipur, Rajasthan, beyond 1 st February, 2017. The Board, after deliberations, extended the validity of the formal approval up to 31st January 2018. (x) Request of M/s. Newfound Properties and Leasing Private Limited for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Juinagar, District Thane, Maharashtra, beyond 31 st December, 2016 The Board, after deliberations, extended the validity of the formal approval up to 30 th June, 2017. (xi) Request of M/s. Nagaland Industrial Development Corporation Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Agro and Food Processing at Dimapur, Nagaland, beyond 11 th October, 2016 The Board, after deliberations, observed that a show-cause notice be given to the developer as to why further extension may not be given and why the SEZ has not yet become operational despite six extensions. The Board also directed DC FSEZ to carry out physical inspection of the SEZ and ascertain the details of investment made so far by the developer. Item No. 74.2 : Requests for extension of LoP beyond 3rd Year onwards (3 proposals) (i) Request of M/s. G. Metals Company, a unit in NSEZ at Plot No. 98, NSEZ for extension of validity period of its LoP beyond 27 th October, 2016 The Board, after deliberations, extended the validity of the LoP up to 27 th October, 2017. (ii) Request of M/s. Pinkcity Jewel House Pvt. Ltd., a unit in Sitapura, Jaipur SEZ for extension of validity period of its LoP beyond 2 nd September, 2016 The Board, after deliberations, extended the validity of the LoP up to 2 nd September, 2017. (iii) Request of M/s. Amneal Oncology Pvt. Ltd., a unit in TSIIC Limited SEZ at Polepally village, Jadcherla Mandal, Mahaboob Nagar District, Telangana for extension of validity period of its LoP beyond 13 th December, 2016 The Board, after deliberations, extended the validity of the LoP up to 13 th December, 2017. Item No. 74.3: Requests for co-developer (1 proposal) ( i) Request of M/s. India Power Corporation (Bihar) Private Limited for co-developer in the multi product SEZ at Nanguneri, Tirunelveli District, Tamil Nadu, being developed by M/s. AMRL Hitech City Ltd. After deliberations, the Board approved the proposal of M/s India Power Corporation (Bihar) Private Limited for development of power distribution network and other ancillary support relating to power distribution within the SEZ, subject to the condition that no duty benefits for any development made outside the SEZ shall be available in accordance with the co-developer agreement entered into with the developer, and subject to standard terms and conditions as per SEZ Act and Rules provided that the lease period is reduced to a period not exceeding 30 years (Renewable). Item No. 74.4: Proposals for setting up of SEZs (6 proposals) (i) Request of M/s. Worldwide Oilfield Machine Pvt. Ltd. for setting up of a sector specific SEZ for Engineering at Village Kasurdi, Gunjal Maval, Tal. Bhor, Pune, Maharashtra, over an area of 58.23 hectares. The Board, after deliberations, granted in-principle approval for setting up of a sector specific Special Economic Zone for Engineering at Village Kasurdi, Gunjal Maval, Tal. Bhor, Pune, Maharashtra, over an area of 58.23 hectares. (ii) Request of M/s. Embassy Property Developments Private Limited for setting up of sector specific SEZ for IT/ITES at Outer Ring Road, Rachenahalli Village, Bangalore, Karnataka, over an area of 2.5906 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Outer Ring Road, Rachenahalli Village, Bangalore, Karnataka, over an area of 2.5906 hectares. (iii) Request of M/s. L T Construction Equipment Limited(Reality Division) for setting up of a sector specific SEZ for IT/ITES at L T Campus, Bellary Road, Byatarayanapura, Next to GKVK, Bangalore, Karnataka over an area of 2.34 Hectares. The Board, after deliberations, deferred the proposal as recommendation of the State Government was awaited. (iv) Request of M/s. Horizonview Properties Pvt. Ltd. and M/s. RPIL Singalling Systems Ltd. for setting up of sector specific SEZ for IT/ITES at Old No. 111/New No. 162, Mount Poonamalle High Road, Porur, Chennai, Tamil Nadu, over an area of 2.49 hectares. The Board, after deliberations, deferred the proposal as the proposal was submitted by the developer directly to the BoA without the recommendation of the State Government. The developer should submit the proposal to DC MEPZ along with the recommendation of the State Government. (v) Request of M/s. Phoenix Embassy Tech Zone Private Limited for setting up of a sector specific SEZ for IT/ITES at Sy. No. 115/35, Nanalramguda Village, Serilingampally Mandal, Ranga Reddy District, Telangana, over an area of 2.02 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Sy. No. 115/35, Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District, Telangana, over an area of 2.02 hectares. (vi) Request of M/s. Phoenix Embassy Tech Zone Private Limited for setting up of a sector specific SEZ for IT/ITES at Sy. No. 203 Part, Manikonda Jagir Village, Serilingampally Mandal, Ranga Reddy District, Telangana, over an area of 2.02 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Sy. No. 203 Part, Manikonda Jagir Village, Serilingampally Mandal, Ranga Reddy District, Telangana, over an area of 2.02 hectares. Item No. 74.5: Change of Shareholding Pattern (3 proposals) (i) Request of M/s. United Health Group Information Systems Pvt. Limited under VSEZ for change of shareholding patterns of the following units. The unit-1 was granted LoP on 08.01.2010 in M/s. Sundew Properties Limited The unit - 2 was granted LoP on 16.02.2012 in M/s. Phoenix Infocity Pvt. Limited The unit - 3 was granted LoP on 26.09.2014 in M/s. Sundew Properties Limited The Board, after deliberations, approved the proposal for change of shareholding patterns of the above units subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfillment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit entity and its constituents; iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v) The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. vi) The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (ii) Request of M/s. UnitedHealth Group Information Services Pvt. Ltd., a unit in CSEZ for change shareholding pattern. The Board, after deliberations, approved the proposal for change of shareholding pattern subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfillment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit entity and its constituents; iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v) The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. vi) The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (iii) Request of M/s. UnitedHealth Group Information Systems Pvt. Limited under NSEZ for change of shareholding patterns of the following units. The unit -1 was granted LoP on 02.05.2012 in M/s. Oxygen Business Park Pvt. Ltd. The unit - 2 was granted LoP on 21.09.2015 in M/s. Oxygen Business Park Pvt. Ltd. The Board, after deliberations, approved the proposal for change of shareholding patterns of the above units subject to following conditions:- i. Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii. Fulfillment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit entity and its constituents; iii. Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv. Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v. The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. vi. The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. vii. The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii. Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. Item No. 74.6: Miscellaneous Cases (7 cases) (i) Request of M/s. Zydus Infrastructure Pvt. Ltd. for sectoral broad banding in sector specific SEZ for pharmaceuticals at Matoda, Sanand, Ahmedabad to bio-technology The Board, after deliberations, approved the proposal. (ii) Request of M/s. Shri Lal Mahal Ltd., Kandla SEZ for processing activity of Rice for export in their existing LoA The Board, after deliberations, rejected the proposal. (iii) Request of M/s. Aequs SEZ Private Limited in sector specific SEZ for precision engineering at Belgaum, Karnataka at Belgaum, Karnataka for setting up of Training Centre in Non-processing Area The Board, after deliberations, approved the proposal subject to the condition that training centre will cater only to the employees of the SEZ units in the Aequs SEZ. (iv) Request of M/s. Milak Warehouse, Kandla SEZ for permission to warehouse of imported raw sugar for 100% export in their existing LoA The Board, after deliberations, rejected the proposal. (v) Request of M/s. A One Duty Free Private Limited for procurement of Cigarette from ITC Limited without paying duty against ARE-1 form and supplies to Duty Free Shops Bonded Warehouses Foreign Vessels. The Board, after deliberations, deferred the proposal with directions that policy on allowing trading activities in SEZs as well as trading in sensitive items may be examined in detail. (vi) Request of M/s. Maithan Alloys Limited (formerly known as M/s. Anjaney Alloys Ltd.), a Unit in APSEZ, Atchutapurma, Visakhapatnam District, Andhra Pradesh for permission for import of Ferro Manganese Slag The Board, after deliberations, approved the proposal. Item No. 74.7: Appeals before BoA (One proposal) (i) Appeal of M/s. Sunny View Estates Private Ltd. as Co-Developer of IT/ITES SEZ viz. Quarkcity India Pvt. Ltd. at Mohali, Punjab against the decision of UAC. The Board observed that the decision of the UAC, NSEZ in its meeting held on 30.03.2016 was consistent with the power guidelines dated 16.02.2016 and therefore found no reason to intervene with the decision of the UAC. Decision on Supplementary Agenda Item No. 74.8: Requests for extension of validity of formal approvals (One proposal) (i) Request of M/s. Gopalan Enterprises (India) Private Limited for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Mahadevapura Kaggadaspura, K.R. Puram, Whitefield, Bangalore, Karnataka, beyond 2 nd July, 2016. The Board, after deliberations, extended the validity of the formal approval up to 2 nd July, 2017. Item No. 74.9 : Requests for extension of LoP beyond 3 rd Year onwards (One proposal) (i) Request of M/s. Hangers Plus (India) Pvt. Ltd., a unit in Mahindra World City - Apparel and Fashion Accessories SEZ, Kancheepuram Distt, Tamil Nadu for extension of LoP beyond 30th September, 2016. The Board, after deliberations, extended the validity of the LoP up to 30 th June, 2017. Item No. 74.10: Requests for co-developer (2 proposals) (i) Request of M/s. Pesh Infra Builders LLP for co-developer in the sector specific SEZ for IT/ITES at Rajiv Gandhi Infotech Park, Phase-III, Hinjewadi, Pune, Maharashtra, being developed by M/s. Maharashtra Industrial Development Corporation (MIDC) The Board noted that the DC SEEPZ recommended the proposal during the meeting and therefore approved the proposal for construction of buildings and related infrastructure for IT/ITES Units, development of space for IT/ITES unit and all default authorized operations, over an area of 14000 sq. mtrs in accordance with the co-developer agreement entered into with the developer, and subject to standard terms and conditions as per SEZ Act and Rules provided that the lease period is reduced to a period not exceeding 30 years (Renewable). (ii) Request of M/s. Embassy Services Pvt. Ltd. for co-developer in the sector specific SEZ for IT/ITES at Outer Ring Road, Nagavara Village, Bangalore, Karnataka, being developed by M/s. Saltire Developers Private Limited After deliberations, the Board approved the proposal of M/s. Embassy Services Pvt. Ltd. for making operation and maintenance of buildings and other infrastructure/facilities to be undertaken in the entire area of the SEZ in accordance with the co-developer agreement entered into with the developer, subject to standard terms and conditions as per SEZ Act and Rules. Item No. 74.11: Proposals for setting up of SEZs (One proposal) (i) Request of M/s. L T Construction Equipment Limited (Reality Division) for setting up of a sector specific SEZ for IT/ITES at L T Park SEZ Plot 2, L T Campus, Bellary Road, Byatarayanapura, Next to GKVK, Bangalore, Karnataka over an area of 4.95 Hectares. The Board, after deliberations, deferred the proposal as recommendation of the State Government was awaited. Decision on Table Agenda Item No. 74.12: Miscellaneous Cases (i) Request of M/s. Wipro Ltd. at Survey No. 39, Old TB Hospital Area, Visakhapatnam to add additional area to the already approved area for its IT/ITES SEZ The Board, after deliberations, rejected the proposal. Annexure I List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 6m January, 2017 under the Chairpersonship of Commerce Secretary, Department of Commerce 1. Ms. Rita Teaotia, Chairpersonship, BoA Commerce Secretary, Department of Commerce 2. Shri Ajay Kumar Bhalla, , DGFT 3. Shri Alok Vardhan Chaturvedi, Additional Secretary, Department of Commerce 4. Shri Vinay Chhabra, DG, DGEP, Department of Revenue, Ministry of Finance 5. Dr. Tejpal Singh, Additional Director General, DGEP 6. Smt. Deepshikha Sharma, Director, CBDT, Department of Revenue, Ministry of Finance 7. Shri Saroj Kumar Behera, Joint Director, DGEP, BEC 8. Shri Rakesh Mishra, US, M/o. P NG 9. Shri S. Sasikumar, Dy. Director, DIPP 10. Shri D.K. Rai, Director, Ministry of Shipping 11. Shri A.K. Mishra, Research Assistant TCPO, Ministry of Urban Development, Vikas Bhawan, I.P. Estate, New Delhi 12. Dr. Urbarshi Rai, GM, Emporium, PSIEC, New Delhi 13. Shri R.C. Dhara, Consultant, Industries Department, Haryana 14. Shri A.K. Dham, Liaision Officer, Govt. of Odisha, New Delhi 15. Shri R.K. Gupta, CGM, RIICO Ltd Govt. of Rajasthan, Jaipur 16. Shri Dinesh Pahadia, Additional GM, RIICO Ltd Govt. of Rajasthan, Jaipur 17. Shri K. Biswal, JS LC, Legislative Department, M/o. Law Justices 18. Dr. N Sathyanarayana, Joint Director, M/o A 19. Dr. Jasvir Sing, Dy. Director, M/o Agriculture FW, Krishi Bhawan, New Delhi 20. Shri H.S. Bisht, Director, O/o DC (MSME), Nirman Bhawan, New Delhi 21. Shri Surendra Kumar, Asstt. Legal Advisor, D/o. LA, M/o. LJ. 22. Dr. Krishna Kanth Pulichula, Scientist, TDT Division, Dept. of Science Technology, Technology Bhawan LIST OF DEVELOPMENT COMMISSIONERS 23. Dr. L.B. Singhal, Development Commissioner, Noida SEZ/Falta SEZ 24. Shri N.P.S. Monga, Development Commissioner, SEEPZ-SEZ 25. Dr. Safeena AN, Development Commissioner, CSEZ 26. Shri Upendra Vashisht, Development Commissioner, KASEZ 27. Shri R.P. Goyal, Development Commissioner, AP SEZ/Mundra 28. Ms. Sobhana K.S. Rao, Development Commissioner, VSEZ 29. Shri M.K.S. Sundram, Development Commissioner, MEPZ-SEZ 30. Shri J.M. Gupta, Development Commissioner, Indore SEZ 31. S.K. Sharma, Development Commissioner, Milian SEZ Nagpur 32. Smt. Lata Shukla, Development Commissioner, Navi Mumbai SEZ 33. Shri K.L. Sharma, Development Commissioner, Surat SEZ 34. Shri S.K. Samal, Development Commissioner, Sri City SEZ, AP 35. Shri A.K. Singh, Development Commissioner, Mangalore SEZ LIST OF PARTICIPANTS FROM DEPARTMENT OF COMMERCE 36. Shri T.V. Ravi, Director, Department of Commerce 37. Shri G. Srinivasan, Under Secretary, Department of Commerce 38. Shri Aditya Narayan, Under Secretary, Department of Commerce 39. Shri K.C. Biswal, Section Officer, Department of Commerce 40. Shri Piyush, Section Officer, Department of Commerce