Minutes of the 85th meeting of the. Board of Approval for SEZ held on 02 November 2018 to consider setting up of Special Economic Zones and other miscellaneous proposals - SEZ - Minutes of the 85th meeting of the SEZ

The Eighty Fifth (85 th ) meeting of the Board of Approval (BoA) for Special Economic Zones (SEZs) was held on 2 nd November, 2018 under the Chairmanship of Shri Anup Wadhawan, Secretary, Department of Commerce, at 11:00 A.M. in Room No. 108, Udyog Bhawan, New Delhi. The list of participants is Annexed (Annexure-1). Item No. 85.1: Requests for extension of validity of formal approvals (one proposal) 85.1(i) Request of M/s. Mayar Infrastructure Development Pvt. Ltd. for further extension of the validity of formal approval, granted for setting up of Biotechnology Sector Specific SEZ at Village Rahka and Nimoth, Tehsil Sohna, Gurgaon (Haryana) beyond 13.07.2018. The Board, after deliberations, approved extension of the validity of the formal approval up to 13 th July, 2019. Item No. 85.2: Requests for extension of LoP beyond 3 rd Year onward (7 proposals) 85.2(i) Request of M/s. Omni Lens Private Limited, Plot No. 17 18 in the Electronic Park SEZ, Sector-26, Kolavad Road, Gandhinagar developed by M/s Gujarat Industrial Development Corporation for extension of Letter of Permission (LOP) beyond 02.09.2018 for one year upto 01.09.2019. The Board, after deliberations, approved extension of the validity of the LoP up to 1 st September, 2019. 85.2(ii) Request of M/s Neogen Chemicals Limited, unit in the Dahej SEZ for extension of Letter of Approval (LOA) beyond fourth year for two years upto 15.10.2019. The Board, after deliberations, approved extension of the validity of the LoP up to 15 th October, 2019. 85.2(iii) Request of M/s Essentia Advanced Sciences Pvt. Ltd. in the APSEZ, Visakhapatnam for extension of Letter of Permission (LoP) beyond 20.10.2018 for 5 th extension upto 20.10.2019. The Board, after deliberations, approved extension of the validity of the LoP up to 20 th October, 2019. 85.2(iv) Request of M/s. Natco Pharma Ltd, unit in M/s. Ramky Pharma City SEZ, Parawada Mandal, Visakhapatnam District for extension of Letter of Approval beyond 18.11.2018 for a period of one year upto 18.11.2019. The Board, after deliberations, approved extension of the validity of the LoP up to 18 th November, 2019. 85.2(v) Request of M/s. Moser Baer Solar Ltd. (Unit-II), a unit in Non-Conventional Energy sector specific SEZ of M/s. Moser Baer India Ltd. at 66B, Udyog Vihar, Greater Noida (U.P.) for extension of first block of five years from 09.09.2011 for a further period of two years i.e. upto 08.09.2020 for monitoring of NFE Under Rule 72 of SEZ Rules, 2006. The Board, took note of the view of the DGEP that the unit has not been declared sick and was therefore not within the purview of Rule 72(1) of the SEZ Rules, 2006. The Board, also noted the changes in law relating to declaration of a unit as sick and after deliberations, granted in-principle approval to the unit for extension of NFE period for one more year upto 08.09.2019. The Board also directed that suitable amendment in Rule 72(1) of the SEZ Rules, 2006 may be taken up to represent current situation on sick units and the role of National Company Law Tribunal in terms of The Insolvency and Bankruptcy (Adjudicating Authority) Rules, 2016. 85.2(vi) Request of M/s. Tech Mahindra Ltd. in MIDC SEZ at Plot No. 4, Rajiv Gandhi Infotech Park, MIDC SEZ, Hinjewadi, Phase III, Pune, Maharashtra for extension of Letter of Permission (LOP) beyond 21.10.2018 upto 20.10.2019. The Board, after deliberations, approved extension of the validity of the LoP up to 20 th October, 2019. 85.2(vii) Request of M/s. Steam Equipment Pvt. Ltd. in MIDC SEZ at Satara Maharashtra for extension of Letter of Permission (LOP) beyond 15.05.2018 upto 14.05.2019. The Board, after deliberations, approved extension of the validity of the LoP up to 14 th May, 2019. Item no. 85.3: Proposals for renewal of LoP for plastic units (6 proposals). 85.3(i) Request of M/s. Kkalpana Industries (India) Ltd. for renewal of its LOA dated 26.03.1997. 85.3(ii) Request of M/s. Precision Polyplast Private Limited for renewal of its LOP dated 18.12.1997 85.3(iii) Request of M/s. Sukhi India Private Limited for renewal of its LOP dated 18.10.1996 85. 3(iv) Request of M/s. Amarnath Enviroplast Limited for renewal of LOA beyond 30.11.2018 85.3(v) Request of M/s. Nara Exim Pvt. Ltd. for renewal of its LOA dated 18.12.1996 85.3(vi) Request of M/s. Alps Overseas Pvt. Ltd. for renewal of LOA beyond 30.11.2018. The Board, after deliberations, decided to defer the matter to its next meeting. The Board directed that a Group of Development Commissioners comprising of DC, NSEZ, DC, KASEZ and DC, FALTA may be set up to examine all aspects including social issues and come out with its recommendations before the proposals are decided in a meeting of the BoA. Item No. 85.4: Proposals for setting up of SEZs (2 proposals) 85.4(i) Request of M/s. Highland Valley Corporation Private Limited for setting up of a sector specific SEZ for IT/ITES at Tirunelveli, Tamil Nadu over an area of 27.425 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Tirunelveli, Tamil Nadu, over an area of 27.425 hectares. 85.4(ii) Request of M/s. Delta Electronics India Private Limited for setting up of a sector specific SEZ for Electronic Hardware and Software including ITATES at Plot No. 1, Industrial Park, Kurubarapalli, Krishnagiri District, Tamil Nadu, over an area of 10.96 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for Electronic Hardware and Software including IT/ITES at Plot No. l, Industrial Park, Kurubarapalli, Krishnagiri District, Tamil Nadu, over an area of 10.96 hectares. Item No. 85.5.: Cancellation of Co-developer status (one proposal) 85.5(i) Request of M/s. Access Healthcare Services Private Limited in Coimbatore, Hitech Infrastructure private Limited SEZ (CHIL-SEZ), Coimbatore for cancellation of co-Developer status approved by BoA. The Board, after deliberations, approved cancellation of co-developer status granted to M/s. Access Healthcare Services Private Limited. Item No. 85.6: Change of Shareholding Pattern /merger/de-merger (one proposal) 85.6 (i) Request of M/s. Kumar Builders Township Ventures Pvt. Ltd. in the sector specific SEZ for IT/ITES at Village Hinjewadi Mann, Taluka - Mulshi, Pune, Maharashtra for change in shareholding pattern. The Board, noted that extension of validity period of formal approval in case of M/s. Kumar Builders Township Ventures Pvt. Ltd. has been granted upto 11.12.2018. The Board approved the proposal and stated that no other rules are to be relaxed. The approval is subject to the following conditions :- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; ii) Fulfilment of all eligibility criteria applicable to developer, including security clearances etc., by the altered developer 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 developer shall furnish details of PAN and jurisdictional assessing officer of the developer to CBDT. Item No. 85.7: Miscellaneous Cases (5 proposals) 85.7(i) Proposal of M/s. Brandix India Apparel City Private Limited for amendment - (decrease) in the land extent in the co-developer approval. The Board, after deliberations, approved the request for amendment (decrease) in area from 99.62 to 94.76 Ha in the formal approval for Co-developer. 85.7(ii) Request of M/s. RGA Infrastructure a sector specific SEZ for IT/ITES at Chikkankannelli Village, Varthur Hobli, Bangalore East, for increase in an area of 1.18 hectares . The Board, after deliberations, approved the proposal for increase in an area of 1.18 ha making the resultant area as 2.77 Ha. 85. 7(iii) Request of M/s. Trustone Wegmans Developers Pvt. Ltd., Co-developer for increase in super built-up area from 38,000 Sqmt to 42,500 Sqmt. to be developed by them in the Electronics Hardware Software including IT/ITES SEZ of M/s. Artha Infratech Pvt. Ltd. at Plot No. 21, Sector- Techzone-IV, Greater Noida. The Board, after deliberations, approved the proposal of M/s. Trustone Wegmans Developers Pvt. Ltd. for increase in super built-up area from 38,000 Sqmt to 42,500 Sqmt. in accordance with the agreement between the Developer and co-developer subject to standard terms and conditions as per the SEZ Act and Rules provided that the lease period is reduced to a period not exceeding 30 years (Renewable). 85.7(iv) Request for revoking/de-notification of SEZ status given to M/s. Ansal IT City Parks Ltd. Co-developer M/s. Earth Iconic Infrastructure Pvt. Ltd. at Tech Zone 06, Greater Noida. The Board, after deliberations directed DC, NSEZ to issue Show Cause Notice to the Developer and the Co-developer, under Section 10 of the SEZ Act, 2005 for the irregularities on the part of the Co-developer with a copy to Greater Noida Industrial Development Authority. 85.7 (v) Request to include management consultant services as a default authorized service for SEZs. The Board, after deliberations, recommended inclusion of management consultant services in addition to the 66 default authorized services subject to the condition that exemption for management and business consultant services would be limited to the value of services availed of/consumed by the SEZ entity only and that the unit shall produce evidence to that effect to the satisfaction of the authorities concerned that the said service was consumed in relation to their authorised operations only. Item no. 85.8: Appeals before BoA (One Appeal). 85.8(i) Appeal of M/s. Textile Hub against the order dated 28.08.2018 of UAC/KASEZ rejecting their application for setting up a unit for service activity of segregation/sorting/operation of imported used clothing on behalf of foreign clients. The appellant did not appear before the Board. Hence, the appeal stands deferred to the next meeting of the BoA. The Appellant may be Informed to appear before the BoA in its next meeting. Decision on Supplementary Agenda Item no. 85.9: Proposals for renewal of LoP for plastic units (one proposal). 85.9(i) Proposal of M/s Plastic Processors Exporter Pvt. Ltd. for renewal of LoA for next five years in terms of Rule 18(4) of SEZ Rules'06. The Board, after deliberations, decided to defer the matter to its next meeting. The Board directed that a Group of Development Commissioners comprising of DC, NSEZ, DC, KASEZ and DC, FALTA may be set up to examine all aspects including the social and come out with its recommendations before the proposals are decided in the next meeting of the BoA. Item No. 85.10: Request for co-developer (one proposal) 84.10 (i) Request of M/s. Anomalous Infra Pvt. Ltd. for co-developer status for construction, operation maintenance and leasing of new two warehouses at Arshiya-FTWZ, SEZ, Raigad, Maharashtra for an area of 2.30 hectares. The Board, after deliberations, approved the proposal of M/s. Anomalous Infra Pvt. Ltd. for construction, operation maintenance and leasing of new two warehouses over an area of 2.30 hectares in accordance with the co-developer agreement entered into with the developer, subject to standard terms and conditions as per SEZ Act and Rules provided that the lease period does not exceed 30 years (Renewable). Item No. 85.11: Miscellaneous Cases (3 proposals) 85.11(i) Request of M/s. BSR Builders LLP a sector specific SEZ for IT/ITES at Sy. No. 141 142, Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District, Telangana, for increase in an area of 1.684 hectares. The Board, after deliberations, approved the proposal for increase in an area of 1.684 ha making the resultant area as 2.844 Ha. 85.11(ii) Request of M/s. ATS Savvy Developers LLP, Ahmedabad for notifying additional area for the Free Trade Warehousing Zone a Multi Services SEZ at Ratanpur, District Gandhinagar, Gujarat developed by M/s. GIFT SEZ Ltd. The Board, took note that DC, KASEZ recommends the proposal and after deliberations, approved for additional area of 1643.607 sq.m on the first floor of the building within the multi services SEZ over and above the approved area of FTWZ on the Ground Floor. 85.11(iii) Request of M/s. The Manjri Stud Farm Pvt. Ltd. (TMSFPL), a sector specific SEZ for IT/ITES at Pune, Maharashtra for the following:- 1. Approval for demerger of SEZ undertaking forming part of the IT/ITES SEZ being developed by the Manjri Stud Farm Pvt. Ltd. (TMSFPL) in Pune to Manjri Developers Pvt. Ltd. (MDPL). The Developer has obtained the NCLT order dated 29.8.2018 in respect of de-merger of SEZ undertaking. Developer will continue to operate on going concern basis. 2. Approval for co-developer status to the de-merged company M/s. Manjri Developers Private Limited (MDPL). The Board, after deliberations approved the proposal for demerger of Manjri Stud Farm Pvt. Ltd. (TMSFPL) in Pune to Manjri Developers Pvt. Ltd. (MDPL) subject to the following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered co-developer entity; ii) Fulfilment of all eligibility criteria applicable to co-developer, including security clearances etc., by the altered co-developer 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 co-developer shall furnish details of PAN and jurisdictional assessing officer of the codeveloper to CBDT. The Board, also approved the proposal of M/s. Manjri Developers Private Limited (MDPL) for Co-developer status for undertaking development, leasing, sub-leasing, licensing, sub-licensing, operations and maintenance activities of the buildings and all related equipment and infrastructure, and other similar/support activities in respect of Phase II 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 provided that the lease period does not exceed 30 years (Renewable). Decision on Supplementary Agenda II 85.12 Request of M/s L TMBDA - Grant of Provisional LOA to M/s L TMBDA under MEPZ pending obtaining licence under Arms Act, 1959 for setting up of SEZ Unit. The Board after deliberations, directed that the proposal for grant of license under the Arms Act, 1959 may be expeditiously processed on file after receiving necessary application/documents from the unit and clearances from relevant Departments. Annexure - I List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 2 nd November, 2018 under the Chairmanship of Commerce Secretary, Department of Commerce. 1. Shri Anup Wadhawan, Chairman, BoA Commerce Secretary, Department of Commerce 2. Shri Alok Vardhan Chaturvedi, DG, DGFT 3. Shri Bidyut Behari Swain, Additional Secretary, Department of Commerce 4. Shri N.K. Srivastava, Additional, DGFT. 5. Smt. Deepshikha Sharma, OSD, ITA-I CBDT, Department of Revenue, Ministry of Finance. 6. Dr. Prem Verma, ADG, DGEP, CBEC 7. Shri Saroj Kumar Behera, Joint Director, DGEP, CBEC 8. Shri Anil Kant Mishra, Research Assistant TCPO, Ministry of Urban Development, Vikas Bhawan, I.P. Estate New Delhi. 9. Ms. R. Mythili, Under Secretary, DIPP. 10. Ms. Urvashi Roul. GM, PSIEC, New Delhi on behalf of PSIEC Govt. of Punjab. 11. Shri Kapil Kumar, Assistant Director, Department of Industries Commerce, Haryana 12. Shri A.K. Dham, Liaison officer, Govt. of Odisha Niwas, New Delhi. LIST OF DEVELOPMENT COMMISSIONERS 13. Dr. L.B. Singhal, Development Commissioner, Noida SEZ 14. Shri Baldev Singh, Development Commissioner, SEEPZ-SEZ 15. Dr. M.K.S. Sundram, Development Commissioner, MEPZ-SEZ/ CSEZ 16. Dr. Amiya Chandra, Development Commissioner, KASEZ/ Adani Port SEZ, Mundra 17. Ms. Sobhana K.S. Rao, Development Commissioner, VSEZ 18. Shri B.K. Panda, Development Commissioner, Falta SEZ 19. Shri G. Seetharam Reddy, Development Commissioner, APIIC SEZ, Atchutapuram, Visakhapatnam. 20. Shri J.M. Gupta, Development Commissioner, Indore SEZ 21. Shri R. Muthuraj, Development Commissioner, Sri City SEZ 22. Shri S. Sasi Kumar, Development Commissioner, Mangalore SEZ 23. Shri Shri Jay Karan Singh, Development Commissioner, Mihan SEZ, Nagpur 24. Shri Anil Kumar Choudhary, Development Commissioner, Dahej SEZ 25. Shri Virendra Singh, Development Commissioner, Surat SEZ, Gujarat LIST OF PARTICIPANTS FROM DEPARTMENT OF COMMERCE 26. Shri Senthil Nathan S, Deputy Secretary, Department of Commerce. 27. Shri G. Srinivasan, Under Secretary, Department of Commerce 28. Shri Aditya Narayan, Under Secretary, Department of Commerce 29. Ms. Ruchika Bhatt Chaudhuri, Section Officer, Department of Commerce 30. Shri Piyush, Section Officer, Department of Commerce