Minutes of the 95th meeting of the. Board of Approval for SEZ held on 14th February, 2020 to consider setting up of Special Economic Zones and other miscellaneous proposals - SEZ - Minutes of the 95th meeting of the SEZ

Minutes of 95th meeting of the Board of Approval (BoA) for Special Economic Zones (SEZs) held on 14th February, 2020 The Ninety Fifth (95th) meeting of the Board of Approval (BA) for Special Economic Zones (SEZs) was held on 14th February, 2020 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-I). Agenda Item No. 95.1: Confirmation of minutes of the meeting of the 94th BoA held on 3 rd January, 2020. The Board ratified the minutes of the 94th meeting of the BoA held on 3rd January, 2020. Agenda Item No. 95.2: Requests for extension of validity of formal approval (one proposal) 95.2(i) Request of M/s. Indus Gene Expressions Ltd for further extension of the validity period of formal approval, granted for setting up of Bio-tech sector Specific SEZ at Kodur Settipali Villages, Anantapur Distt, beyond four years. The Board, after extension of the validity of the formal approval up to 13th February, 2021. Agenda Item No. 95.3: Request for extension of LoA beyond 3rd year onwards (4 proposals) 95.3(i) Request of M/s. Indus Gene Expressions Ltd., an SEZ unit in M/s. Indus Gene Expressions Ltd-SEZ for extension of Letter of Approval beyond 01.01.2020 for a period of one year up to 01.01.2021 The Board, after deliberations, approved extension of the validity of the LoA up to 1 st January, 2021. 95.3(ii) Request of M/s Vidya Herbs Private Limited in the KIADB (Pharmaceutical) SEZ, Hassan, Karnataka for extension of Letter of Approval (LoA) beyond 27.10.2019 for a period of one year upto 26.10.2020. The Board, after deliberations, decided to approve the proposal for grant of an extension beyond 27.10.2019 for a period of one year, i.e., up to 26.10.2020. Further, on the advice of the Department of Revenue, the Board directed that necessary instructions may be issued to all units to submit the request for extension of LoA two months prior to such expiry, in terms of Rule 19(6A)(1) of SEZ Rules, 2006. 95.3(iii) Request of M/s BEML Limited in KIADB Aerospace SEZ for extension of Letter of Approval (LoA) beyond 05.01.2020 for a period of one year upto 05.01.2021. The Board, after deliberations, decided to grant an extension to the unit beyond 05.01.2020 for a period of one year, i.e., up to 05.01.2021. The Board, further directed JDC, Bangalore SEZ to carry out an inspection of the site and take cognizance of the nature and cause of dispute with the contractor and report the same to DOC. 95.3(iv) Request of M/s Biocon Pharma Ltd. in Biocon SEZ for extension of Letter of Permission (LoP) beyond 22.02.2020 for six months upto 01.09.2020. The Board, after deliberations, decided to grant an extension to the unit up to 01.09.2020.DC, CSEZ was directed to get the issuance of license from Karnataka State Drugs Control Department expedited. Agenda Item No. 95.4: Request for co-developer status (2 proposals) 95.4(i) Request of M/s. Pi Datacenters Private Limited for co-developer status in the Infoparks Kerala SEZ, Puthencruz, Ernakulam for development of IT/ITES infrastructure - Cloud enabled datacenter together with relevant amenities. The Board, after deliberations, directed DC, CSEZ to re-examine the proposal and re-submit with full details of processing and non-processing area, area/infrastructure proposed for dual use for SEZ and non-SEZ units, etc., in terms of Rule 11A of the SEZ Rules, 2006. 95.4(ii) Request of M/s. Embassy Commercial Projects (Whitefield) Private Limited (ECPPL) for co-developer status to develop, operate and maintain land parcels 3A, 3B, 4A and 4B over an area of 8 hectares in Vikas Telecom Pvt. Ltd. SEZ. The Board, after deliberations, approved the proposal for grant of co-developer status to ECPPL for approved activities indicated in the Co-developer Agreement. Agenda Item No. 95.5: Increase in area of co-developer (6 proposals) 95.5(i) Request of M/s. Phoenix Tech Zone Pvt. Ltd an IT/ITES SEZ at Sy. No. 115/35, Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District, Telangana for increase in allotment of constructed space to the Members of the Co-Developers. The Board, after deliberations, approved the proposal for increase in built-up area for providing infrastructure facilities or undertaking any authorised operations by the co-developer. 95.5(ii) Request of M/s. Phoenix Tech Zone Pvt. Ltd, SEZ for IT/ITES at Sy. No. 118, 120, 121, 122, 138/P, Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District, Telangana for increase in allotment of constructed space to the Members of the Co-Developers. The Board, after deliberations, approved the proposal for increase in built-up area for providing infrastructure facilities or undertaking any authorised operations by the co-developer. 95.5(iii) Request of M/s. Phoenix Spaces Pvt. Ltd, SEZ for IT/ITES at Sy. No 286 287, Puppalguda Village, Rajendra Nagar Mandal, Ranga Reddy District, Telangana for increase in allotment of constructed space to the Members of the Co-Developers. The Board, after deliberations, approved the proposal for increase in built-up area for providing infrastructure facilities or undertaking any authorised operations by the co-developer. 95.5(iv) Request of M/s. Phoenix Spaces Pvt. Ltd, SEZ for IT/ITES at Sy. No.285, Puppalguda Village, Rajendra Nagar Mandal, Ranga Reddy District, Telangana for increase in allotment of constructed space to the Members of the Co-Developers. The Board, after deliberations, approved the proposal for increase in built-up area for providing infrastructure facilities or undertaking any authorised operations by the co-developer. 95.5(v) Request of M/s. Phoenix Ventures Pvt. Ltd, SEZ for IT/ITES at Sy. No. 35/P and 36, Gachibowli Village, Serilingampally Mandal, Ranga Reddy District, Telangana for increase in allotment of constructed space to the Members of the Co-Developers. The Board, after deliberations, approved the proposal for increase in built-up area for providing infrastructure facilities or undertaking any authorised operations by the co-developer. 95.5(vi) Request of M/s. Phoenix IT City Pvt. Ltd, SEZ for IT/ITES at Sy. No.53/paiki/part, Gachihowli Village, Serilingampally Mandal, Ranga Reddy District, Telangana for increase in allotment of constructed space to the Members of the Co-Developers. The Board, after deliberations, approved the proposal for increase in built-up area for providing infrastructure facilities or undertaking any authorised operations by the co-developer. Agenda Item No. 95.6: Proposal for change in Shareholding Pattern (one proposal) In terms of DoC's Instruction No. 89, dated 17.05.2018, re-organization in respect of developer and co-developer including change in shareholding pattern, business transfer arrangements, court approved mergers and de-mergers in case of developer/co-developer etc. are to be undertaken by the Board of Approval. 95.6(i) Request of M/s. Sundew Properties Ltd, Developer a sector specific SEZ for IT/ITES at Madhapur, Near Hyderabad, Ranga Reddy District, Telangana for change in shareholding pattern of their SEZ post participation in the proposed REIT. The Board, after deliberations, decided to grant an in-principle approval for change in shareholding pattern subject to approval/registration with SEBI and regulatory compliances being met by the developer with 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. Agenda Item No. 95.7: Miscellaneous cases (Eight proposals) 95.7(i) Cancellation of liquor shop of Planet F B Park operational in the premises of Hotel Beetel (M/s Hirise Hospitality Pvt. Ltd.) and imposition of penalty on the co-developer and unit. The Board, after deliberations, directed DC, APSEZ to look into the matter and issue a notice to Planet F B Park and grant them an opportunity to represent their case. Thereafter, a suitable proposal may be made to this Department for consideration. 95.7(ii) Proposal of M/s C S Performance Chemicals Pvt. Ltd., a unit in Plot No. Z/33 at Dahej SEZ for the procurement of restricted items for infrastructure development repairing facility in terms of SEZ Rule 27 of Rule 2006. The Board, after deliberations, decided to approve the proposal subject to the condition that DC, Dahej SEZ will ensure compliance of all relevant conditions. 95.7(iii) Proposal of M/s C S Specialty Chemicals Pvt. Ltd., a unit in Plot No. Z/81/82 at Dahej SEZ for the procurement of restricted items for infrastructure development repairing facility in terms of SEZ Rule 27 of Rule 2006. The Board, after deliberations, decided to approve the proposal subject to the condition that DC, Dahej SEZ will ensure compliance of all relevant conditions. 95.7(iv) Proposal of M/s Ana Industries Pvt. Ltd., a unit in Dahej SEZ for procurement of restricted items for infrastructure development repairing facility in terms of Rule 27 of SEZ Rules 2006 dated 10.02.2006. The Board, after deliberations, decided to approve the proposal subject to the condition that DC, Dahej SEZ will ensure compliance of all relevant conditions. 95.7(v) Request of M/s. GIFT SEZ Limited, Gandhinagar for permission to procure Sand from DTA units as prescribed under Rule 27(1) of the SEZ Rules, 2006. The Board, after deliberations, decided to approve the proposal subject to the condition that DC, GIFT SEZ will ensure compliance of all relevant conditions. 95.7(vi) Proposal of M/s Jyoti Industries, a unit in KASEZ for renewal of its LOA for next five years block. The Board, after deliberations, authorized DC, KASEZ to examine and take a decision on the matter in terms of SEZ Act/Rules. 95.7(vii) Judgment, dated 02.05.2019 of the Hon'ble High Court of Gujarat in Special Civil Application No. 4765 of 2016, filed by M/s World Window Infrastructure Logistics Pvt. Ltd.(co-developer) Vs UOI regarding cancellation of co-developer approval by BoA. The Board, heard the appellant and on the request of the appellant granted a week's time to make additional submissions in support of their claim. The Board, accordingly, decided to defer the matter. 95.7(viii) Request of M/s Anita Exports, a plastic recycling unit in KASEZ for renewal of their LoP in view of judgment, dated 07.01.2020 of the Hon'ble Supreme Court of India in SLP (Civil) Diary No. 36257/2019, filed by Uol Ors Vs M/s Anita Exports Anr. against Order, dated 18.04.2019 of the Hon'ble High Court of Gujarat at Ahmedabad in SCA No. 17013/2018 filed by the unit. The Board, after deliberations, decided to grant an ex-post facto approval to the extension of LOA of the unit upto 31.05.2020 as the unit is liable to be kept at par with such 28 plastic recycling units as per the directions of the Hon'ble High Court of Gujarat in SCA No. 17013/2018. Agenda Item No. 95.8: Appeal (One appeal) 95.8(i) Appeal of M/s. HCL Technologies Limited against the decision of the UAC, Noida Special Economic Zone vide order dated 07.01.2020 rejecting the request of the unit for Group Health and Medical Insurance Services as authorized operations of the unit and its coverage under default service namely General Insurance Business Services . The Board heard the appellant and after deliberations, decided to defer the matter with the directions that the proposal may first be examined on file and views of DoR may be obtained. The consolidated proposal may then be placed before the BoA for deliberations. Decisions on Supplementary Agenda Agenda Item No.95.9: Request for extension of LoP beyond 3rd year onwards (Two proposals) 95.9 (i)Request of M/s Wockhardt Limited Unit 2 at Shendre, Aurangabad, Maharashtra for extension of the validity period of LoA for a period of one year from 25.02.2020 to 24.02.2021. The Board, after deliberations, approved extension of the validity of the LoA up to 24th February, 2021. 95.9 (ii) Request of M/s Designtech Systems Ltd., a unit in MIDC at Plot No. 23/2, MIDC ITITES SEZ, Rajiv Gandhi Infotech Park, Hinjewadi, Phase III, Pune for extension of LoP beyond 19.01.2020 upto 18.01.2021. The Board, after deliberations, approved extension of the validity of the LoA up to 18 th January, 2021. Agenda Item No. 95.10: Change of Shareholding Pattern (One proposal) 95.10(i) M/s. Candor Gurgaon Two Developers Projects Pvt. Ltd., Co-developer of IT/ITES SEZ of M/s. Gurgaon Infospace Limited at Village Dundahera, Sector-21, Distt- Gurugram (Haryana) - Proposal for transfer of Co-developer approval in the name of M/s. Candor Kolkata One Hi-Tech Structures Pvt. Ltd. pursuant to the approval of Scheme of Amalgamation by NCLT, Mumbai Bench vide order dated 08.08.2019 subsequent order dated 14.11.2019. The Board, after deliberations, approved the proposal for transfer of Co-developer approval in the name of M/s. Candor Kolkata One Hi-Tech Structures Pvt. Ltd. with 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 relevant rules of Revenue/Company Affairs/SEBI etc., 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. Agenda Item No. 95.11: Request for extension of validity of in-principle approval and decrease in approved area (One proposal) 95.11 (i) Proposal of M/s. Raj Build Infra LLP for extension of the validity of in-principle approval for setting up of FTWZ at Bhiwandi, Thane, Maharashtra, beyond 04.02.2020. The Board, after deliberation, approved the decrease of an area of 180 Ha from earlier in-principle approved area of 300 Ha and extension of 'In-principle' approval for further period of 1 year, i.e., up to 04.02.2021 for a remaining area of 120 hectares. Agenda Item No. 95.12: Request for formal approval for setting up of FTWZ (One proposal) 95.12(i) Request of M/s. NDR Infrastructure Pvt. Ltd. seeking Formal Approval for setting up of an FTWZ at Nandiyambakkam Village, Minjur Panchayat, Ponneri Taluk, Tiruvallur District, Tamil Nadu over an area of 40.94 Ha. The Board took note of the Revenue Department's comments regarding the minimum area as per the latest amendment not being maintained in this case and observed that the developer was granted an in-principle approval by the BoA in the 90th meeting in June, 2019 for setting up of SEZ in terms of Rule of the SEZ Rules, 2006 keeping in view the minimum required area of 40 hectares for FTWZ as per the then rules. The Board noted that since the application for formal approval dates before the amendment of rule on 17.12.2019 and the developer had acquired an additional area keeping in view the in-principle approval granted to them by the Board, the amendment for minimum area requirement of 50 Ha for setting up an SEZ cannot be made applicable to their proposal which had already been accorded in-principle approval. However, the Board directed that the policy may be revisited in respect of minimum area requirement for an FTWZ. Agenda Item No.95.13: Miscellaneous cases (Two proposals) 95.13(i) Request of M/s. M/s. Kandla Free Trade Warehousing Pvt. Ltd. (formerly M/s. Integrated Warehousing Kandla Project Development Pvt. Ltd.) a Co-Developer at KASEZ, Gujarat for cancellation of LoA. The Board, after deliberations directed DC, KASEZ to give a personal hearing to the codeveloper. The submissions of the co-developer may be obtained and forwarded with the recommendations of DC for consideration of the BoA. 95.13 (ii) Request of BMR Legal for inclusion of additional services in 'Default Authorized Services'. The proposal was deferred by the Board with the directions that the proposal may first be examined on file and views of DoR may be obtained. The consolidated proposal may then be placed before the BoA for deliberations. ************ ANNEXURE - I List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 14th February, 2020 under the Chairmanship of Commerce Secretary, Department of Commerce. 1. Shri Anup Wadhawan, Chairman, BoA Commerce Secretary, Department of Commerce 2. Shri R.P. Goyal, Additional, DGFT 3. Shri Bidyut Behari Swain, Additional Secretary, Department of Commerce 4. Shri Senthil Nathan S, Deputy Secretary, Department of Commerce. 5. Shri Gulzar Ahmad Wani, US (ITA-I), CBDT 6. Shri Saroj Kumar Behera, Additional Director, DGEP. 7. Shri Lal Chand Dabara, Assistant Legal Adviser, D/o Legal Affairs, M/o Law Justice, Shastri Bhawan. 8. Dr. S.R. Husain, TCPO/ M/o HUA 9. Shri Sonu Singh, Scientist E, Ministry of Environment, Forest and Climate Change, Delhi. 10. Shri M.K. Sardana, Coordinator, BIPP, Govt. of Haryana 11. Shri G. Panmei, Deputy Legislative Council, D/o Legislative Department, Shastri Bhawan. 12. Shri M.K. Coordinator, BIPP, New Delhi 13. Dr. (Mrs.) Urvashi Roul, GM, Coordination, PSIEC, New Delhi 14. Dr. Avinash Tripathi, OSD, Noida U.P. LIST OF DEVELOPMENT COMMISSIONERS l. Dr. L.B. Singhal, Development Commissioner, Noida SEZ 2. Shri Shanmuga Sundram, Development Commissioner, MEPZ 3. Shri S.K Bansal, Development Commissioner, SEEPZ-SEZ 4. Dr. Amiya Chandra, Development Commissioner, KASEZ/ Adani Port SEZ, Mundra 5. Shri A. Rama Mohan Reddy, Development Commissioner, Visakhapatnam SEZ. 6. Shri B.K. Panda, Development Commissioner, Falta SEZ 7. Shri R. Muthuraj, Development Commissioner, Sri City SEZ 8. Shri Anil Kumar Choudhary, Development Commissioner, Dahej SEZ 9. Shri Virendra Singh, Development Commissioner, Surat SEZ, Gujarat 10. Shri A.K. Jha, Development Commissioner, Reliance SEZ, Jamnagar, Gujarat 11. Shri Jay Karan Singh, Development Commissioner, Mihan SEZ, Nagpur. 12. Shri A.S. Naveen Kushalappa, Joint Development Commissioner, Cochin SEZ 13. Shri Saju K Surendran, Deputy Development Commissioner, Cochin SEZ