Minutes of the 111th meeting of the Board of Approval for SEZs held on 28th July, 2022 - SEZ - Minutes of the 111th meeting of the SEZ

Minutes of the 111 th meeting of the Board of Approval for SEZs held on 28th July, 2022 The One Hundred and Eleventh (111 th ) meeting of the Board of Approval (BoA) for Special Economic Zones (SEZs) was held on 28.07.2022 under the chairmanship of Shri B.V.R.Subrahmanyam, Secretary, Department of Commerce at 4:00 P.M. in Conference Room (Room no. 427), Vanijya Bhawan, New Delhi through hybrid mode. The list of participants is annexed at ( Annexure-I ). 111.1 Ratification of the minutes of the 110th meeting of the Board of Approval held on 26.05.2022. The Board ratified the minutes of the 110th meeting of the BoA held on 26.05.2022. 111.2 Request for extension of LoA of the unit (two proposals) 111.2(i) Request of M/s JBF Petrochemicals Limited, a Unit in Mangalore SEZ for extension of validity of Letter of Approval beyond 15.09.2022. The Board, after deliberations, approved extension of the validity of LoA upto 15.09.2023. 111.2(ii) Request of M/s. Nissi Engineering Solutions Pvt. Ltd., a Unit in the AMRL Hi Tech City Ltd., Multi Product SEZ, Nanguneri, Tirunelveli District, Tamil Nadu for extension of Letter of Approval (LoA) from 01.08.2022 to 31.12.2022. The Board, after deliberations, approved extension of the validity of LoA upto 31.12.2022. 111.3 Requests for co-developer status (four proposals) 111.3(i) Request of M/s. Ozone Vishwanath Developers, Ahmedabad for approval as Co-Developer in Multi Services SEZ at Ratanpur, District Gandhinagar, Gujarat, developed by M/s. GIFT SEZ Limited. The Board, after deliberations, approved the proposal of M/s. Ozone Vishwanath Developers for co-developer status for construction, development, maintenance and operation of SEZ building for units to undertake services/authorized operations in the processing area of GIFT SEZ over an area of 11,148.27 sq. mtrs. footprint 14 G in Block 14. The approval shall be subject to execution of necessary co-developer agreement with the developer as well as subject to standard terms and conditions as per SEZ Act and Rules and conditions and observations of CBDT and CBIC which will be mentioned in LoA to be issued subsequently. The lease period shall be in accordance with DoC's Instruction no.98 dated 29.08.2019. 111.3(ii) Request of M/s. Bakeri Residences LLP, Ahmedabad for approval as Co-Developer within dual-use area of non-processing area in GIFT-Multi Services SEZ at Ratanpur, District Gandhinagar, Gujarat developed by M/s. GIFT SEZ Limited. The Board, after deliberations, approved the proposal of M/s. Bakeri Residences LLP for codeveloper status for development of residential project consisting of two towers and comprising an area of 6503 sq.mt. (land area) and 85,966 sq.mt. (built-up area) within the dual-use area of Non-processing area in GIFT SEZ. The approval shall be subject to execution of necessary co-developer agreement with the developer as well as subject to standard terms and conditions as per SEZ Act and Rules and conditions and observations of CBDT and CBIC which will be mentioned in LoA to be issued subsequently. The lease period shall be in accordance with DoC's Instruction no.98 dated 29.08.2019. 111.3(iii) Request of M/s. Ishraj Infratech LLP for approval as Co-Developer in IT/ITES SEZ developed by M/s. Maharashtra Industrial Development Corporation at Rajiv Gandhi Infotech Park, Hinjewadi Phase Ill, Pune. The Board, after deliberations, approved the proposal of M/S. Ishraj Infratech LLP for codeveloper status for construction of buildings and related infrastructure for IT/ITES units, development of space for IT/ITES unit and all default authorised operations over an area of 9000 sq. mtr. in MIDC SEZ in accordance with the co-developer agreement dated 30.06.2022 entered into with the developer subject to standard terms and conditions as per the SEZ Act and Rules and conditions and observations of CBDT and CBIC, which will be mentioned in LOA to be issued subsequently. The lease period shall be in accordance with DoC's Instruction No. 98 dated 29.08.2019. 111. 3(iv) Request of M/s. Kale Impex Pvt. Ltd. for approval as Co-Developer in Mihan SEZ, Nagpur. The Board, after deliberations, approved the proposal of M/s. Kale Impex Pvt. Ltd. for codeveloper status for construction of warm shell with plug and play facilities, internet facilities wifi, Common Server Rooms, Common Meeting conference Rooms, Common Cafeteria, Common Garden and Power Back-up facilities over Plot no. IR, (6070 sq.mtrs) Sector 18, Mihan SEZ. The approval shall be subject to execution of necessary co-developer agreement with the developer as well as subject to standard terms and conditions as per SEZ Act and Rules and conditions and observations of CBDT and CBIC which will be mentioned in LOA to be issued subsequently. The lease period shall be in accordance with DoC's Instruction no.98 dated 29.08.2019. 111.4 Setting up of new SEZ (one proposal) 111. 4(i) Request of M/S. L T Realty Developers Limited for formal approval for setting up of an IT/ITES SEZ at L T Campus, Bellary Road, Byatarayanapura Village, Next to GKVK, Bangalore, Karnataka over an area of 2.361 Ha. The Board, after deliberations, approved the proposal for setting up of IT/ITES SEZ at L T Campus, Bellary Road, Byatarayanapura Village, Next to GKVK, Bangalore, Karnataka over an area of 2.361 Ha. 111.5 Miscellaneous cases (five proposals) 111.5(i) Request for cancellation of Co-developer status of M/S Bhartiya Urban Pvt. Ltd. (formerly M/S Bhartiya Urban Infrastructure Land Development Company Private Limited) in Milestone Buildcon SEZ, Bangalore North, Karnataka. The Board, after deliberations, approved cancellation of co-developer status granted to the codeveloper ws Bhartiya Urban Pvt. Ltd. subject to fulfilment of all statutory provisions in this regard. 111.5(ii) Proposal of M/s Balaji International for permission to import prohibited goods in their Moradabad SEZ unit for their authorized operations. The Board noted that the desiccated coconut has already been imported by the unit from Vietnam and the consignment contains 15 M. Tons of desiccated coconut valued at USD 16,995.00 (CIF value of approx. Rs.88.94 per kg). Further, the Board also noted that the unit recently got their LOA and has claimed that they were not aware of prohibition policy since it was their first import. The Board, after deliberations, decided keeping in view the facts and circumstances to grant as a one-time ex-post facto approval, to the unit M/s Balaji International for import of prohibited item i.e. desiccated coconut powder provided that the 100% exports of goods made out of desiccated coconut powder are carried out. There shall be no DTA sale of goods made out of desiccated coconut powder. The Board also note that this approval shall not be quoted as a precedence. 111.5(iii) Proposal of M/s HPCL Rajasthan Refinery Ltd. for permission to lay 6 kms crude oil pipeline through APSEZ, Mundra. The Board, after deliberations, approved the proposal of M/s HPCL Rajasthan Refinery Limited for laying 6 kms pipeline to be run through in parallel to the SEZ boundary wall inside APSEZ, Mundra. HRRL, being a DTA entity will not be entitled for any SEZ benefits. 111. 5(iv) Request of M/s. Savvy ATS Realty LLP, Ahmedabad a Co-Developer in Multi Services Special Economic Zone at Village Ratanpur, District Gandhinagar, Gujarat, developed by M/s. GIFT SEZ Limited for approval of an additional area admeasuring 2385 square meters. The Board, after deliberations, approved the proposal of M/s. Savvy ATS Realty LLP for increase in area of 2385 sq. mtrs. to the existing area of 4461 sq. mtrs. subject to execution of necessary agreement with the developer, subject to standard terms and conditions as per the SEZ Act and Rules. The lease period shall be in accordance with DoC's Instruction No. 98 dated 29.08.2019. The other conditions of the LoA shall remain the same. 111.5 (v) Request for renewal of LoA of the plastic recycling units in Kandla SEZ, Falta SEZ and Noida SEZ for a period of five years. The Board noted that the existing validity of the LoA of the plastic recycling units (23 in Kandia SEZ, 6 in Falta SEZ and 1 in Noida SEZ) shall expire on 26.08.2022. The representative from MoEF CC informed the Board that they are reviewing their policy for import of such items and that a suitable amendment/notification in this regard shall be issued by their department after such review. The Board examined the unit-wise performance taking into account the positive Net Foreign Exchange Earnings in past five years i.e. 2017-2022, fulfillment of criteria of 35% exports in terms of annual turnover and 50% in terms of tonnage as specified in the DoC's policy dated 27.05.2021. Further, in light of notification of the Hazardous and Other Waste (Management and Transboundary Movement) Amendment Rules, 2021 vide G.S.R. 47(E) dated 27.01.2021 issued by the MoEF CC allowing import of 'post industrial or preconsumer polyethylene wastes' and 'polymethyl methacrylate' by the SEZ units and EoUs only, the performance of the unit during the period January, 2021 to June, 2022 was also deliberated upon by the Board. The Board, after detailed deliberation decided that the LoA of only those units which meet the NFE obligations in addition to the criteria of exports in terms of annual turnover as well as tonnage, as specified in the DoC's policy dated 27.05.2021, stand extended for a further period of five years beyond 26.08.2022. Jurisdictional Development Commissioner may take further necessary action accordingly. Supplementary Agenda Items 111.6 Procurement of sand and soil for infrastructural development in SEZ 111.6 (i) Permission for procurement of restricted items (sand and soil) by developer/codeveloper/units for infrastructural development/construction activities inside the Special Economic Zones. The Board, after deliberations, decided to delegate its power under Section 9(4) of the SEZ Act, 2005 to the Development Commissioner to allow supply of sand and soil (which is restricted item, as per export policy) by Domestic Tariff Area to Special Economic Zone developer or unit for the purpose of construction or setting up of an infrastructural facility subject to the condition that the items are actually used for the stated purpose. 111.7 Transfer of Letter of Approval of the developer (one proposal) 111.7(i) Proposal for transfer of Letter of Approval of the developer, M/s Nokia India Private Ltd. SEZ, Sriperumbudur, Tamil Nadu in favour of M/s Salcomp Manufacturing India Private Limited. The Board, after deliberations, decided to approve the proposed transfer in terms of powers drawn from sub-section (10) of Section 10 of the SEZ Act, 2005 in public interest where the incoming developer is also an operator (unit) subject to clearance from CBDT. DC, MEPZ shall ensure that the entity continues to operate as a going concern and all liabilities of the developer will remain unchanged on such reorganization. The remaining conditions as stipulated under Instruction no. 109 for business transfer arrangement shall remain applicable. 111.8 Request for co-developer status (one proposal) 111.8(i) Request of M/s. Bhandari Sangath Builders LLP, Ahmedabad for approval as codeveloper within the dual-use area of non-processing area in GIFT Multi Services SEZ at Ratanpur, District Gandhinagar, Guajrat developed by M/s. GIFT SEZ Limited. The Board, after deliberations, approved the proposal of M/s. Bhandari Sangath Builders LLP for co-developer status for development, construction and operation of residential building on building footprint 16C, Block No. 16 in the dual use non processing area of GIFT SEZ. The approval shall be subject to execution of necessary co-developer agreement with the developer as well as subject to standard terms and conditions as per SEZ Act and Rules and conditions and observations of CBDT and CBIC which will be mentioned in LOA to be issued subsequently. The lease period shall be in accordance with DoC's Instruction no.98 dated 29.08.2019. Table Agenda Items 111.9 Miscellaneous requests of the units (two proposals) 111.9(i) Request for renewal of Letter of Approvals of M/s Ambika Scrap Recycling Pvt. Ltd. for their plastic recycling and metal scrap recycling units in KASEZ. The Board, after deliberations, decided to revert the matter to DC, KASEZ for further examination. 111.9 (ii) Request of M/s Motan Enterprises, a unit in KASEZ SEZ for renewal of LOA of their trading unit. The Board noted that M/s Motan Enterprises has been granted a fresh LoA on 09.03.2022 for trading activity. The Board, did not find any merit on the request for renewal of LoA granted to the unit on 09.08.2001. Decision on Table Agenda Il Item no. 111.10 Proposal for setting up of new SEZ 111.10(i) Request of M/s. Essar Minmet Limited for In-Principle approval for setting up of an SEZ for specific sector (Iron Ore Pellets/Steel) in Odisha over an area of 93.97 Ha (232.21 Acres). The Board was informed that formal communication after due examination from DC, Falta SEZ is awaited. At this stage the item is for guidance from BOA regarding the proposal of the developer, the combined area of 93.97 Ha comprises of Beneficiation Plant (53.50 Ha) and Pellet Plant (40.47 Ha). The two plots of land are connected by a 250 kms captive, dedicated and seamless Slurry Pipeline which is said to be establishing contiguity and making it a composite SEZ which shall be used exclusively for the purpose of the proposed SEZ. The Board noted that this is an exceptional, one of a kind case. The beneficiation Plant is in one location and the Pellet Plant is in another location. That is so because of industrial reasons requiring the plants to be where they are. They are linked by a seamless slurry pipeline and the output of one unit is to be used exclusively by the other. Both are to be connected by a 250 km captive pipeline. The Board noted that, given the interpretative powers of the Board inherent under the Proviso to Rule 7 of the SEZ Rules, this arrangement can be treated as one SEZ. A proposal may be moved by the Development Commissioner on these lines along with comments/ recommendations as per Rules. ANNEXURE - 1 List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 28th July, 2022 under the Chairmanship of Commerce Secretary, Department of Commerce. 1. Shri B.V.R. Subrahmanyam, Chairman, BoA Commerce Secretary, Department of Commerce. 2. Shri Amit Yadav, Additional Secretary, Department of Commerce. 3. Shri Santosh Kumar Sarangi, DG, Directorate General of Foreign Trade. 4. Shri D. V. Swamy, Development Commissioner, CSEZ and VSEZ (Addl charge). 5. Shri Shyam Jagannathan, Development Commissioner, SEEPZ SEZ. 6. Shri Virendra Singh, Development Commissioner, Surat SEZ, Gujarat. 7. Shri Anindita Sen Gupta, Development Commissioner, Falta SEZ. 8. Dr. V. Sraman, Development Commissioner, Mihan SEZ. 9. Shri Vipul Bansal, Joint Secretary, Department of Commerce. 10. Shri A. Bipin Menon, Development Commissioner, Noida SEZ. 11. Dr. Amiya Chandra, Development Commissioner, Adani Ports SEZ, Mundra. 12. Shri Akash Taneja, Development Commissioner, Kandla SEZ. 13. Shri Vijay Kumar, Additional DGFT, Directorate General of Foreign Trade. 14. Shri Roshan Lal, Additional Director, DGEP. 15. Shri Senthil Nathan S, Director, Department of Commerce. 16. Shri R. A. Praveen Kumar, Joint Development Commissioner, APSEZ (APIIC). 17. Shri Prabhu Kumar, Deputy Development Commissioner, MEPZ, Chennai. 18. Ms. Anjali Ramesh, Assistant Secretary, Department of Commerce. 19. Shri Nirmal Kumar, Assistant Director, DGEP. List of participants connected via Video Conferencing. 20. Shri C.P.S. Chauhan, Joint Development Commissioner, SEEPZ- SEZ. 21. Shri S.K. Bansal, Development Commissioner, Indore SEZ. 22. Shri Vikas Singh, Director, ITA-I, CBDT. 23. Shri Ved Prakash Mishra, Director, HSM Division, MoEF CC. 24. Dr. Bahadur Singh, ALC, Legislative Department, MoL J. 25. Shri Krishna Mohan Arya, ALC, Department of Legal Affairs.