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TMI BlogMinutes of the 50th meeting of the SEZ Board of Approval held on 24thJanuary 2012 to consider proposals for setting up Special Economic Zones and other miscellaneous proposalsX X X X Extracts X X X X X X X X Extracts X X X X ..... f 8,15,308 persons has been generated in the SEZs. During the financial year 2010-11, total exports to the tune of Rs. 3,15,867.85 crores have been made from the SEZs, registering a growth of about 43.11% over the exports for the year 2009-10. Exports in the current financial year (i.e. up to 31.12.2011) have been to the tune of Rs. 2,60,972.89 crores. Item No. 50.1: Proposals for setting up of SEZs. (i) Proposal of M/s. Tata Consultancy Services Limited, for setting up of a sector specific Special Economic Zone for IT ITES/BPO/KPO at Indore, Madhya Pradesh, over an area of 40.469 hectares. The Board noted that the Developer was in possession of the land. The Government of Madhya Pradesh had also recommended the proposal for formal approval vide their letter dated 31.12.2011. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Tata Consultancy Services Limited, for setting up of a sector specific Special Economic Zone for IT ITES/BPO/KPO at Indore, Madhya Pradesh, over an area of 40.469 hectares. (ii) Proposal of M/s. Cochin Port Trust, for setting up of Free Trade Warehousing Zone (FTWZ) at Southern end of Willingdon Island, Survey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to defer consideration of the proposal till the receipt of State Government s recommendation. Item No.50.2: Request for co-developer All BoA sanctioned approvals to co-developers are subject to the condition that particular terms and conditions of lease agreement/co-developer agreement will not have any bearing on the treatment of the income by way of lease rentals/down payment/premium etc., for the purposes of assessment under the prevalent Income Tax Act and Rules. The Assessing Officer, will have the right to examine the taxability of these amounts under the SEZ Act and Income Tax Act as applicable. This is applicable to all the cases of co-developers approved by the BoA in this meeting. The Board further directed that proposals for grant of codeveloper status should be accompanied by lease deed/draft lease deed which must inter-alia contain the details of financial transactions/arrangements between developer and proposed co-developer. The decisions of the proposals are as under:- (i) Request of M/s. Air Liquide India Holding Private Limited for co-developer in the sector specific SEZ for Solar at village Mahroomkurd and Chawardhal District, being developed by M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve mentioned SEZ, for setting up of 100 tons electronic weigh bridge, installation operation, over an area of 1 acre, in accordance with the codeveloper agreement entered into with the developer. (v) Request of M/s. Virtus IT Services Private Limited for co-developer in the sector specific SEZ for IT/ITES at Attipra, Taluk and District Thiruvananthapuram, Kerala, being developed by M/s. Electronics Technology Parks - Kerala The representative of CBDT pointed out that the lease agreement had been signed well before the co-developer agreement. A report in this regard was sought from the DC CSEZ. The proposal was, therefore, deferred . (vi) Request of M/s. Cyber Parks, Kozhikode for co-developer in the sector specific SEZ for IT/ITES at Kozhikode District, Kerala, being developed by Kerala State Information Technology Infrastructure Limited After deliberations, the Board approved the request of M/s. Cyber Parks, Kozhikode for becoming a co-developer in the above mentioned SEZ, for development of IT infrastructure, over an area of 4.3 acres, in accordance with the co-developer agreement entered into with the developer. (vii) Request of M/s. Adani International Conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h related development over an area of 5 Ha, in accordance with the Codeveloper agreement. (ix) Request of M/s. Khed Textile Park Private Limited for co-developer in the multi product SEZ at Taluka Khed Shirur, District Pune, Maharashtra being developed by M/s. Khed Economic Infrastructure Private Limited (x) Request of M/s. Chella Software (P) Limited for co-developer in the sector specific SEZ for IT/ITES at llandhaikulam village, Madurai, Tamil Nadu being developed by Electronics Corporation of Tamil Nadu Limited (ELCOT) The representative of CBDT pointed out that they were not in receipt of the lease agreement proposed to be entered into by the Developer and co-developer, which is necessary for examining the financials of the proposal. The proposal was, therefore, deferred and the respective DCs were directed to provide copy of the lease agreement to DoC. The Board further directed that all proposals for grant of co-developer status should be accompanied by lease deed/draft lease deed which must inter-alia contain the details of financial transactions/arrangements between developer and proposed co-developer. Item No. 50.3: Requests for Authorized operations. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. C-01, Sector 67, Noida, Uttar Pradesh beyond 5th November 2011 The Board after deliberations extended the validity of the formal approval up to 5th November 2012. (iv) Request of M/s. Ascendant Estates Private Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Bondsi, Tehsil, Sohna, District Gurgaon, Haryana, beyond 5th November 2011 The Board noted that the Development Commissioner has not recommended grant of further extension to the project as the developer has not taken any concrete steps towards implementation of the project after notification. The Board, after deliberations, rejected the request for further extension beyond 5th November, 2011. (v) Request of M/s. Ganesh Housing Corporation Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at village Chharodi and Tragad, Taluka Dascroi and City, District Ahmedabad, Gujarat, beyond 19th December 2011 The Board after deliberations extended the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nadu, beyond 20th November, 2011 The Board after deliberations extended the validity of the in-principle approval up to 20th November, 2012. The Board, however, directed that the developer must apply for formal approval within the extended validity, as the validity of the in-principle approval would not be extended any further. The Board also directed that no further extension of in-principle approvals for SEZs shall be allowed beyond the third extension. Item No. 50.8: Request for extension of in-principle approval beyond fifth year. (i) Request of M/s. Bengal SREI Infrastructure Development Limited for extension of the validity of in-principle approval, granted for setting up of sector specific SEZ for Auto Components at Kharagpur, West Bengal, over an area of 200 Ha, beyond 21st June, 2011. The Board taking note of the recommendation of the Government of West Bengal extended the validity of the in-principle for a period of one year from the expiry of the validity of the last extension (i.e. up to 21st June, 2012). The Board, however, directed that the developer must apply for formal approval within the extended validity, as the validity of the in-principle ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i, Coimbatore South Taluk, District Coimbatore, Tamil Nadu, notified over an area of 11.0388 hectares, subject to DC s certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act/Rules. Item No. 50.12: Request for withdrawal of formal approval (i) Withdrawal of formal approval granted to M/s. Videocon Realty Infrastructure Limited for setting up of sector specific SEZ for IT/ITES at Dabgram, Jalpaiguri, West Bengal The Board decided to approve the request of M/s. Videocon Realty Infrastructure Limited for withdrawal of formal approval granted to them for setting up of sector specific SEZ for IT/ITES at Dabgram, Jalpaiguri, West Bengal, over an area of 10 hectares, subject to DC s certificate that the developer has not availed of any tax/duty benefits under the SEZ Act/Rules or have the same been refunded, as the case may be. Item No. 50.13: Requests for withdrawal of co-developer status (i) Request of M/s. DLF Assets Private Limited for withdrawal of co-developer status granted for developing setting up of sector specific SEZ for IT/ITES at Pune, Maharashtra being developed by M/s. DLF Ackruti Info Parks (Pune) Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of the new sector does not lend itself to be amenable to be categorized under a specific sector as envisaged under the SEZ Act. BoA observed that the sector needs to be more specifically defined so as to ensure that it conforms to the provisions of the sector specific SEZ. Accordingly, the developer subsequently requested for defining the sector as Engineering and related industries , thereby complying with the directions of the BoA. It is noted that similar sector specific SEZs have been approved by BoA earlier. Accordingly, the approval is granted for changing the sector of the SEZ to Engineering and related industries . (iii) Request of Kinfra Industrial Infrastructure Development Corporation for change of sector of the notified sector specific SEZ at Trivandrum, Kerala from IT (Animation and Gaming) to IT/ITES After deliberations, the Board decided to approve the request of Kinfra Industrial Infrastructure Development Corporation for changing the sector of the SEZ from IT (Animation and Gaming) to IT/ITES . Item No. 50.15: Requests for extension of LoP of units beyond 3rd and 4th year (i) Request of M/s. Embedded IT Solutions (India) Private ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had also not been obtained. DC may clarify. Item No. 50.18: Requests of M/s Zitan Trading Corporation and M/s. Rocky Red Sandal Musical Instruments Exports for reconsideration of the decision of the BoA rejecting their requests for setting up of a units in VSEZ for manufacture and export of value added product out of red sanders wood allotted/ procured from legal sources. The Board, after deliberations, did not find any merit in the request to reconsider its earlier decision, taken in its meeting held on 31st May, 2011, to deny approval to the requests of M/s Zitan Trading Corporation and M/s. Rocky Red Sandal Musical Instruments Exports for setting up units in VSEZ. Accordingly, the requests were rejected . Item No. 50.19: Request of Ms. SIMS Recycling Solutions India, a unit in NSEZ SEZ for broad-banding of Letter of Approval Representative of the M/o Environment and Forests informed the Board that M/s SIMS Recycling Solutions have given an undertaking that they would extract metal from ewaste and would not carry out any DTA transactions. However, it was informed by DC (I/c), NSEZ that the said undertaking has not complied with the existing conditions of the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Board also directed DC, NSEZ to furnish the financial details of the transfer of equity for which approval was granted in the BoA meeting held on 15th January, 2009 to the Member (IT), CBDT, immediately. (ii) Request of M/s. Indian Green Grid Group Limited for changing its name to M/s. IG3 Infra Limited The Board was informed that M/s. Indian Green Grid Group Limited has simply changed its name to M/s. IG3 Infra Limited and there is no change in the shareholding of the company. The Board, after deliberations, granted approval to the request of M/s. Indian Green Grid Group Limited for changing its name to M/s. IG3 Infra Limited in the following SEZs where it is developer:- S. No. Sector/Location Dated of notification Area (in hectares) 1. IT/ITES SEZ at Kancheepuram District, Tamil Nadu 11.08.2006 10.53 2. Textile SEZ at Uthukuli village, Erode District, Tamil Nadu 9.6.2008 103.6457 (iii) Request for transfer of the remaining 49% equity of M/s. Arun Excello Infrastructure Private Limited to M/s L T Urban Infrastructure Limited (L T UIL) The Board noted that in the BoA meet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... District, Andhra Pradeshto M/s. Excelestar Ventures 1 LLC, subject to the following:- (a) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; (b) Fulfillment of all eligibility criteria applicable to developers, including security clearances etc., by the altered developer entity and its constituents; (c) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. (d) The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. The Board further directed that complete financial details relating to the transfer of equity shall be furnished immediately to the Member (IT) CBDT, Department of Revenue. It was also clarified that in such cases the assessing officer under the Income Tax Act, 1961, shall have the right to assess the taxability of the amount arising out of the transfer of equity. (vi) Request of M/s Cambridge Builders Private Limited (CBPL), a co-developer, for transfer of 100% of their shareholding to M/s. Xchanging Techno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure - 1 List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 24th January, 2012 under the Chairmanship of Commerce Secretary, Department of Commerce 1. Dr. Rahul Khullar, Chairman BOA Secretary, Department of Commerce. 2. Smt. Ruchira Pant, Director General (DG), Department of Revenue, Ministry of Finance 3. Shri Raman Chopra, Director (ITA), CBDT, Department of Revenue, Ministry of Finance 4. Shri Vivek Ranjan, Additional Director, Department of Revenue, Ministry of Finance 5. Shri Pradip Mehrotra, CIT (ITA), CBDT, Department of Revenue, Ministry of Finance, New Delhi 6. Ms. H.K. Prasad, Additional Director (Export Promotion), DGEP, Department of Revenue, Ministry of Finance. 7. Dr. L. B. Singhal, Joint DGFT, Director General of Foreign Trade 8. Shri Daya Shankar, Deputy DGFT, Director General of Foreign Trade 9. Ms. Sharda Jain, Joint Secretary and Legislative Counsel, Ministry of Law Justice, New Delhi 10. Shri Rakesh Sharma, Principal Secretary Industries, Government of Uttarakhand 11. Shri Shiwendra Singh, Secretary, APADA, Government of Jharkhand 12. Shri A.K. Gupta Chief Gen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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