Minutes of the 87th meeting of the. Board of Approval for SEZ held on 9th January, 2019 to consider setting up of Special Economic Zones and other miscellaneous proposals - SEZ - Minutes of the 87th meeting of the SEZ

Minutes of the 87th meeting of the Board of Approval for SEZs held on 9th January, 2019 The Eighty Seventh (87th) meeting of the Board of Approval (BoA) for Special Economic Zones (SEZs) was held on 9th January, 2019 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. 87.1: Confirmation of minutes of the meeting of the 86th BoA held on 22.11.2018. The BOA ratified the minutes of the 86th meeting of the BoA held on 22.11.2018. Item No. 87.2: Requests for extension of validity of formal approvals (three proposals) 87.2(i) Request of M/s. Golden Tower Infratech Pvt. Ltd. for further extension of the validity of formal approval granted for setting up of IT/ITES SEZ at Plot No. 8, Sector-144, Noida (U.P.) beyond 17.12.2018. The Board, after deliberations, approved extension of the validity of the formal approval up to 17th December, 2019 under Rule 6(2)(a) of SEZ Rules, 2006. 87.2(ii) Request of M/s. G.P. Realtors Pvt. Ltd. for further extension of the validity of formal approval granted for setting up of Electronic Hardware IT/ITES SEZ at Village Behrampur, Balola Bandhwari, Distt. Gurgaon (Haryana) beyond 25.01.2019. Additional DGEP observed that a litigation could be possibly pending in the court on allotment of land. The representative of Government of Haryana however intimated that the G.P Realtors SEZ was not involved in any such litigation. Accordingly, the Board after deliberations, approved the proposal for extension of validity of formal approval up to 25.01.2020. 87.2(iii) Request of M/s. Wipro Limited, IT/ITES SEZ at Resapuvanipalem, Visakhapatnam for extension of validity of Formal Approval for one year till 20.12.2019. The Board, after deliberations, approved extension of the validity of the formal approval up to 20th December, 2019. Item No. 87.3 Requests for extension of LoP beyond 3rd Year onward (four proposals) 87.3(i) Request of M/s. Reliance AIF Management Company Limited in the GIFT - multi-services - SEZ, Ratanpur, Gandhinagar, Gujarat for extension in validity of Letter of Approval (LOA) dated 24.09.2015 beyond 23.09.2018 for further period of one year upto 23.09.2019. The Board, after deliberations, approved extension of the validity of the LoP up to 23rd September, 2019. 87.3(ii) Request dated 28.11.2018 received from M/s. IDEC Bank Limited in the GIFT - multi-services - SEZ, Ratanpur, Gandhinagar, Gujarat for extension in validity of Letter of Approval (LoA) dated 09.11.2015 beyond 08.11.2018 for further period of one year upto 08.11.2019. DC, KASEZ informed that approval from RBI had been received. The Board, after deliberations, approved extension of the validity of the LoP up to 8 November, 2019. 87.3(iii) Request of M/s Wockhardt Limited Unit 3 at Shendre, Aurangabad, Maharashtra for extension of the validity period of LoA for a period of one year upto 24.10.2019. The Board, after deliberations, approved extension of the validity of the LoP up to 24th October, 2019. 87.3(iv) Request of M/s. Container Corporation of India Ltd., a unit in SIPCOT Hi Tech SEZ, Sriperumbudur, Tamilnadu for extension of LoA beyond 30.11.2015. The Board, after deliberations, approved extension of the validity of the LoP up to 29th November, 2019. Item No. 87.4: Change of Shareholding Pattern (two proposals) 87.4(i) Consequent to demerger of M/s. The Manjri Stud Farm Pvt. Ltd. to M/s. Manjri Developers Pvt. Ltd., Pune, request for prior approval for change in shareholding pattern of the company. The Board approved the proposal 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. 87.4 (ii) Request of M/s. DLF Assets Private Limited, co-developer in IT/ITES SEZ at DLF Home Developers Limited at Ramapuram, Chennai for change in shareholding pattern. The Board approved the proposal 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 co-developer to CBDT. Item No. 87.5 Miscellaneous Cases (four proposals) 87.5(i) Request of Meghmani Industries Limited for permission for procurement of Steam through pipeline from DTA unit adjacent to their SEZ Unit. The Board, after deliberations, decided to approve the proposal subject to the condition that the unit will not avail any duty benefits on laying the said pipeline and that DC, Dahej SEZ would ensure proper account of quantum of goods supplied and received from DTA. 87.5(ii) Request of Rudradev Properties Pvt. Ltd., co-developer cancellation of LoA in FTWZ of M/s. Arshiya Northern FTWZ Ltd. at Village Ibrahimpur, Junaidpur urf Maujpur, Tehsil Khurja, Distt. Bulandshahr (U.P.). The Board, after deliberations, approved cancellation of co-developer status granted to M/s. Rudradev Properties Pvt. Ltd. in the aforesaid SEZ. 87.5 (iii) Request of M/s. Brigade (Gujarat) Projects Private Limited for additional Built-up area of 401 sq. ft. Co-Developer in Sector Specific Special Economic Zone at Village Ratanpur, District Gandhinagar, Gujarat, being developed by M/s. GIFT SEZ Ltd. After deliberations, the Board approved the proposal of M/s. Brigade (Gujarat) Projects Private Limited for additional built-up area of 401 sq. ft., subject to Lease-cum-Development Agreement being entered into with the developer for the additional built up area and also subject to standard terms and conditions as per SEZ Act and Rules provided that the lease period is limited to a period not exceeding 30 years (Renewable). 87.5 (iv) Requests for approval for dual use in respect of Offer-Cum-Allotment of completed infrastructure developed in non-processing area of SEZ by the Developer, M/s Gujarat Industrial Development Corporation (GIDC) Ahmedabad to Indian Institute of Packaging under the Department of Commerce for the establishment of a new centre. The Board, after deliberations, decided to approve the proposal subject to the following conditions: - i. The Developer i.e. M/s GIDC produce a certificate to the effect that the area proposed to be allotted to the IIP is put to only such use which is as per the regulations of the Gujarat State Government and the local body in terms of Rule 11A(l) (a) of SEZ Rules, 2006. ii. The tax benefits availed, if any, for creation of the infrastructure shall be refunded by M/s GIDC-the Developer in terms of Ru1e 11A(l) of SEZ Rules, 2006. iii. The Developer i.e. M/s GIDC produces a certificate to the effect that the area restrictions for duty paid dual use non-processing area as mentioned in Rule 11A(3)(c) of the SEZ Rules, 2006 have been followed. Decision on Supplementary Agenda Item No. 87.6: Requests for extension of validity of formal approvals (one proposal) 87.6(i) Request of M/s. Brooke fields Real Estates and Projects Private Limited in the Brookefields SEZ for extension of Letter of Permission (LOP) beyond 31.03.2019 for extension upto 31.03.2020. The Board, after deliberations, approved extension of the validity of the LoP up to 31st March, 2020. Item No. 87.7: Request for extension of LoP beyond 3rd Year onwards (one proposal) 87.7(i) Request of M/s Kusum Healthcare Pvt. Ltd. in Indore SEZ for extension of Letter of Permission (LOP) beyond 28.02.2019 for one year up to 28.02.2020. The Board, after deliberations, approved extension of the validity of the LoP up to 28th February, 2020. Item No.87.8 Proposal for setting up of new SEZs (one proposal) 87.8(i) Request of M/s. Aequs SEZ Private Limited, Aequs Consumer Products SEZ, for setting up of SEZ in Banapur and Talbal Villages, Kukanur Taluka (erst. Yelburga Taluka), Koppal District, Karnataka Sector Specific Light Engineering Goods and Services . The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for Light Engineering Goods and Services at Banapur and Talbal Villages, Kukanur Taluka (erst. Yelburga Taluka), Koppal District, Karnataka over an area of 52.08 hectares. Item No. 87.9: Change of Shareholding Pattern / change of name (four proposals) 87.9(i) Proposal of M/s. ITPG Developers Pvt. Ltd., developer of Electronic Hardware IT/ITES SEZ at Village Behrampur, Gurugram (Haryana) for change in shareholding pattern of the company. The Board approved the proposal 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. 87.9(ii) Approval of demerger of M/s. HGP Community Pvt. Ltd. into M/s. Festus Properties Pvt. Ltd. and M/s. Melorinia Hospitality Pvt. Ltd. granted by Hon'ble National Company Law Tribunal, Mumbai Bench and change of implementing agency in respect of Formal Approval from M/s. HGP Community Pvt. Ltd. to M/s. Festus Properties Pvt. Ltd. The Board approved the proposal subject to the following conditions :- i. Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; ii. Fulfillment 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. 87.9(iii) Request of M/s. DLF Assets Pvt. Ltd., Co-developer of IT/ITES SEZ of M/S. DLF Ltd. at Village Silokhera, Sector-30, Gurugram (Haryana) for change in shareholding pattern of the company. The Board approved the proposal subject to the following conditions :- i. Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered co-developer entity; ii. Fulfillment 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 co-developer to CBDT. 87. 9(iv) Request of M/s. DLF Assets Pvt. Ltd., Co-developer of IT/ITES SEZ of M/s. DLF Cyber City Developers Ltd. at Sector-24 25A, DLF Phase-III, Gurugram (Haryana) for change in shareholding pattern of the company. The Board approved the proposal 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 co-developer to CBDT. Item No. 87.10 Miscellaneous Cases (Six Proposals) 87.10(i) Request of M/s. Hirise Hospitality Pvt. Ltd. co-developer in APSEZ at Mundra for reduction in the area of leased land from 40468 to 25223 sq. meters as per the lease deed dated 06.11.2015 The Board, after deliberations, approved the request for reduction in the area of leased land from 40468 to 25223 sq. meters. 87.10(ii) Proposal of the Co-developer - M/s. Combine Realty Pvt. Ltd., Ahmedabad, for development of additional area of 2166 sq. mtrs. in the IT/ITES-SEZ at Village Ognaj, Talulka Dascroi, District Ahmedabad, developed by M/s. Calica Construction and Impex Pvt. Ltd. After deliberations, the Board approved the proposal of M/s Combine Realty Pvt. Ltd., Ahmedabad, for development of additional area of 2166 sq. mtrs. in the IT/ITES-SEZ at Village Ognaj, Talulka Dascroi, District Ahmedabad, developed by M/s. Calica Construction and Impex Pvt. Ltd. in accordance with the Lease Agreement dated 19.12.2012 and deed of correction dated 10.09.2012 entered into with the developer 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). 87.10(iii) Request of M/s. Altus Learning Pvt. Ltd. (formerly known as M/s. Calorx Education Company Pvt. Ltd. co-developer in APSEZ at Mundra for reduction in the area of leased land from 20356 sq. meter (2.02 Ha) to 12141 sq. meters (1.21 Ha) as per the lease deed dated 09.09.2010. The Board, after deliberations, approved the request for reduction in the area of leased land from 20356 sq. meter (2.02 Ha) to 12141 sq. meters (1.21 Ha). 87.10(iv) Appeal of M/s. ONGC Petro additions Limited (OPaL), a unit in multi-product SEZ developer by Dahej SEZ at Bharuch Gujarat challenging the clarification issued by this Deptt. following the approval of 83rd meeting of the BoA. The Board noted that as per present policy, fiscal benefits for developing infrastructure outside the SEZ was not permissible. The Board also noted that there was no provision in the SEZ Act, 2005 for the Board to review its decision. 87.10(v) Proposal regarding amendment of policy Guidelines of Department of Commerce for Power Generation, Transmission and Distribution in SEZ dated 16.02.2016. Representatives of DoR informed that the DoR with the approval of Finance Secretary had furnished its comments vide its O.M. dated 13.08.2018 that as the matter was a policy decision, DoC may take an appropriate view in the matter. Except for that, DoR has no comments to offer. DoR pointed out that the earlier power guidelines had not been approved by BoA. The Board was informed that the Hon'ble Commerce and Industry Minister had directed that the matter may be deliberated in the Board of Approval. The Board, after deliberations, approved the proposal. 87.10(vi) Request for No Objection for setting up of Disaster Recovery (DR) and Business Continuity Plan (BCP) Centre in Infosys Limited SEZ, located at Kumblapadavu, Kurnad Post, Pajeeru Village, Bantwal Taluk 574153, Dakshina Kannada District, Karnataka reg. The Board, after deliberations, approved the proposal. Annexure - I List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 9th January, 2019 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 Senthil Nathan S, Deputy Secretary, Department of Commerce. 5. Shri G. Srinivasan, Deputy Secretary, Department of Commerce 6. Smt. Deepshikha Sharma, OSD, ITA-I CBDT, Department of Revenue, Ministry of Finance. 7. Dr. Prem Verma, ADG, DGEP, CBEC 8. Shri Saroj Kumar Behera, Joint Director, DGEP, CBEC 9. Shri Anil Kant Mishra, Research Assistant TCPO, Ministry of Urban Development, Vikas Bhawan, I.P. Estate, New Delhi 10. Shri A.K. Tamaria, Dy. Director, O/o DC(MSME), M/o MSME 11. Shri Hemant Kumar, ALA, Department of Legal Affairs. 12. Shri V.K. Sharma, Consultant (PW), Ministry of Shipping. 13. Shri Subhash Sharma, officer on Special Duty, CSIDC, Govt. of Chhattisgarh. 14. Shri R.C. Dahra, Consultant, O/o Director Industries Department, Haryana 15. Shri Suman Chandra, Assistant Resident Commissioner, Govt. of Maharashtra, Maharashtra Sadan. 16. Shri Gurpreet Singh, Manager, PSIEC, Govt. of Punjab. 17. Shri A.K. Dham, Liaison officer, Govt. of Odisha Niwas, New Delhi LIST OF DEVELOPMENT COMMISSIONERS 18. Dr. L.B. Singhal, Development Commissioner, Noida SEZ 19. Shri Baldev Singh, Development Commissioner, SEEPZ-SEZ 20. Dr. M.K.S. Sundram, Development Commissioner, MEPZ-SEZ/ CSEZ 21. Dr. Amiya Chandra, Development Commissioner, KASEZ/ Adani Port SEZ, Mundra 22. Shri G. Seetharam Reddy, Development Commissioner, APIIC SEZ, Atchutapuram/ VSEZ, Visakhapatnam. 23. Shri J.M. Gupta, Development Commissioner, Indore SEZ 24. Shri R. Muthuraj, Development Commissioner, Sri City SEZ 25. Shri S. Sasi Kumar, Development Commissioner, Mangalore SEZ 26. Shri Anil Kumar Choudhary, Development Commissioner, Dahej SEZ 27. Shri Virendra Singh, Development Commissioner, Surat SEZ, Gujarat