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TMI BlogMinutes of the 45th meeting of the SEZ Board of Approval held on 25th March 2011 to consider proposals for setting up of Special Economic ZonesX X X X Extracts X X X X X X X X Extracts X X X X ..... mic Zones. During the financial year 2009-10, total export of Rs. 2,20,711.39 crore has been made from SEZs registering a growth of about 121.40% over the exports for the year 2008-09. The export in the first half of financial year 2010-11, has been to the tune of Rs. 2,23,132.31 crore, registering a growth of 46.70% over the exports of corresponding period of the 2009-10. 3. At the outset, the Board noted that the proposals in respect of five States, namely, Assam, Kerela, Puducherry, Tamil Nadu and West Bengal which are election bound and which have come under the Code of Conduct, need not be taken up and all these proposals, accordingly, stand deferred. Item No. 45.1: Proposals for setting up of SEZs. (i) Proposal of M/s. Artha Infratech Private Limited, for setting up of a sector specific Special Economic Zone for Electronic Hardware Software including IT/ITES at Plot No. 21, Sector Techzone-IV, Greater Noida, District Gautam Budh Nagar, Uttar Pradesh by, over an area of 10 hectares. The Board noted that the Developer was in possession of the land. The Government of Uttar Pradesh has also recommended the proposal for formal approval vide their letter dated 10th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt.) Limited for co-developer in the sector specific SEZ for IT/ITES at Madhurwada, Andhra Pradesh, being developed by Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The representative of CBDT pointed out that the while the lease agreement was executed on 26.3.2009, the co-developer agreement was executed much later on 29.11.2010 thereby creating a doubt as to whether the lease agreement was intended for the purpose of setting up of a unit by M/s. Mytec Software (Pvt.) Limited. Therefore, after deliberations, the Board directed DC, VSEZ to examine the lease agreement to ascertain as to what activities were originally authorized by the lessor (i.e. the developer) to the lessee (the proposed co-developer) vide that lease, and to submit a report for consideration of the Board. Accordingly, the proposal was deferred. (ii) Request of M/s. Marg Digital Infrastructure Private Limited for co-developer in the sector specific SEZ for Multi Services at Cheyyur Taluk, Kancheepuram District, Tamil Nadu, being developed by M/s. New Chennai Township Private Limited The Board decided to consider this item after conduct of the impending Assembly elections in the State of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... developer, the steps taken by the co-developers towards setting them up, the present status of these projects, the occupancy rate of the Hotels in case they have already come up in the zone and also the further requirement of such facilities vis- -vis earlier approvals and their requirement in the zone. Accordingly, the above proposals were deferred. (vi) Request of M/s. Indian Oil Corporation Ltd. for co-developer in the port based SEZ at Puthuvypeen, Kerala developed by Cochin Port Trust. The Board decided to consider this item after conduct of the impending Assembly elections in the State of Kerala. (vii) Request of M/s. Hyderabad Infratech Private Limited for co-developer in the sector specific SEZ for IT/ITES at Gachibowli village, Serillingampally Mandal, R.R. District, Andhra Pradesh, being developed by M/s. Phoenix Infocity Private Limited. The representative of the D/o Revenue observed that from the co-developer agreement it appears that the developer is irrevocably assigning all its rights over the property. Further, the co-developer has also not provided a copy of the lease agreement. They, therefore, requested that the lease agreement needs to be examined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngampally Mandal, R.R. District, Andhra Pradesh, being developed by M/s. Phoenix Infocity Private Limited, for withdrawal of co-developer status. The Board, after deliberations, approved the request of M/s. Phoenix Techno City Private Limited for withdrawal of co-developer status subject to the DC s certificate that the co-developer has refunded all the tax/duty benefits including service tax exemption, which might have been availed under the SEZ Act / Rules. Item No. 45.5: Request of M/s. TAPP Semiconductor India Private Limited, a codeveloper in the sector specific SEZ for Electronics/telecom hardware at SIPCOT Industrial Area, Sriperumbudur, Tamil Nadu, for setting up of FTWZ within the area to be developed as a co-developer. The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. Item No. 45.6: Request of M/s. Torrent Energy Limited (TEL) a co-developer in the multi-product SEZ at District Bharuch, Gujarat being developed by M/s. Dahej Special Economic Zone Limited, for increasing the capacity of the power plant from 1500 MW to 1600 MW The guidelines for power generation transmission and di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meeting dated 24th October 2008, which was noted by the members of the BoA, and State Government Representatives in its meeting held on 8th December 2008. Accordingly, the DCs will ensure that all the authorized operations approved by the BoA, in this meeting, are in line with the guidelines. (i) Request of M/s. Arshiya Northern FTWZ Limited for authorized operations in FTWZ at village Ibrahimpur, Junaidpur, urf Maujpur, Tehsil Khurja, District Bulandshahar, Uttar Pradesh The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the processing/non-processing area of the SEZ, as given in the table: - In the Processing Area:- S. No. Authorised operations Quantum Requested Quantum Approved (in sqm) No. of units Area per unit (in sqm) as per FSI/FAR norms as applicable (1) (2) (3) (4) (5) 1. Open Storage Yards (a) Container Yard 1 65000 65000 (b) Over Dimensional cargo yard 1 14000 14000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) Internet Caf (e) Telephone booth (f) Post/Telegraph Office (g) Business Centre (h) Office for clearing agents, insurance companies shipping companies etc. (i) Stationary Zerox facility (j) Pantry canteen dinning area (k) Data centre (l) Poly clinic Pharmacy (m) Guest Room 1 1000 1000 3. Product Display Centre 1 1000 1000 4. Essential Maintenance Staff Housing and Dormitories (a) Staff Housing 4 units 600 (each unit having 12 tenements with average area of 50 sqm.) 2400 (b) Dormitories 1 No 1500 (150 beds each having an area of 10 sqm.) 1500 (ii) Request of M/s. L T Shipbuilding Limited for authorized operations in sector spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and directed that DC SEEPZ may re-examine the proposals keeping in view the norms and the regulations and submit her reasoned recommendations for the consideration of the Board. (vi) Request of M/s. Indiabulls Realtech Limited, a co-developer in M/s. Indiabulls Industrial Limited for authorized operations in the multi-product SEZ at villages Musalgaon and Gulvanch, Taluka Sinnar, District Nasik, Maharashtra The Board was informed that the co-developer has already been granted approval for authorized operations for the first phase in the meeting held on 11th February 2010 and that the present request is for the following:- (i) Approval for the Authorized operations for the phase-II of the project; (ii) Quantum of goods required for phase-I II of the authorized operations; and (iii) Reduction in the quantum of land requirement for some of the authorized operations so as to bring it in line with the Ministry of Environment and Forests guidelines After deliberations, the Board approved the authorized operations for the phase-II, the quantum of goods required for Phase-I II and also permitted reduction in quantum of some of the authorized operations for Phase-I, aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding Pumps, Piping lines from STPs, Pump House, 33KV line Substation etc. 2 Acre + 10 mtr x 18 Km Common facility for Ph I II 2 Acre +Right of way for 10 mtr x 18 Km for Pipe line corridor to be obtained beyond plant area 1 Set (vii) Fuel Oil Receipt, Storage and Handling System (including pumps, associated drives, Tanks) 2.25 -do- 2.25 1 Set (viii) Air Conditioning System and Ventilation System including ducting etc 0.5 0.5 1.0 2 Sets (ix) Compressed Air system including Compressors, piping, Air vessels and driers etc. 0.75 0.75 1.5 2 Sets (xi) Hydrogen Generation Plant 0.25 Common facility for Ph I II 0.25 1 Set (xiii) Workshop Equipments 0.75 Common facility for Ph I II 0.75 1 Set 2 Electrical Works: (i) Power Transformers GT, ST, UAT ICT (Generator Transformers, Station Transformers, Unit Aux Transformers Interconnecting Transformers etc.) Included in respective syst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 Site Enabling Works : (i) Site Office including Porta Cabins, Furniture and Air Conditioning 5.5 Common facility for Ph I II 5.5 1 Lot (ii) Stores Steel Yard 22.5 -do- 22.5 1 Lot (iii) Field Quality Assurance Lab, Environment Chemical Labs complete with equipment. 0.2 -do- -0.2 3 Sets (iv) Road Weigh Bridge including cabin 0.12 0.12 0.24 2 Nos. (v) DG sets for site 0.25 0.25 0.5 10 Nos. (vi) Lighting masts (Mobile type) NA NA NA 10 Nos. (vii) Site Office Power arrangement (11 KV) 0.25 -do- 0.25 1 Lot (viii) Diversion of existing 220kV Lines at site 7.5 (Right of way beyond plant area) - - (Right of way beyond plant area) 1 Lot (ix) Laying of Construction Power system; 33/11 KV Substations LT Distribution System. Included in respective system Included in respective system - 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period: (i) Request of M/s. Uppals IT Projects Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Greater Noida, District Gautam Budh Nagar, Uttar Pradesh, beyond 16th March 2011. (ii) Request of M/s. Gallant Infrastructure Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. 202, Sector KP-5, Greater Noida, Uttar Pradesh, beyond 6th February 2011. (iii) Request of M/s. Jubilant Infracon Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. 03, Sector 140 A, Greater Noida, Uttar Pradesh, beyond 6th February 2011. (iv) Request of M/s. Anant Raj Industries Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. TP-1, Rai, Sonepat, Haryana, beyond 13th March 2011. (v) Request of M/s. Fama Estate Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at village Jatade an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p of sector specific SEZ for IT/ITES at Jagir Ammapalayam village, Salem Taluk, Salem District, Tamil Nadu, beyond 25th July 2010. (iv) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Vadapalanji village Madurai District, Tamil Nadu, beyond 25th July 2010. (v) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Viswanathapuram village, Hosur Taluk, Krishnagiri District, Tamil Nadu, beyond 25th July 2010. (vi) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Navalpattu village Tiruchirapalli Taluk, Tiruchirapalli District, Tamil Nadu, beyond 25th July 2010. (vii) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Ilandaikulam village, Madurai District, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited (APIIC) for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Karakapatla village, Mulugu Mandal, Medak District, Andhra Pradesh, beyond 25th October 2011 The Board, however, deferred consideration of the following 03 (Three) requests due to forthcoming elections in the respective States:- (i) Request of M/s. Parsvnath SEZ Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Nedumbassery and Chengamanadu villages, Aluva Taluk, Ernakulam District, Kerala, beyond 25th October 2010 (ii) Request of Electronic Corporation of Tamil Nadu Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Vilankurichi, Coimbatore North Taluk, Coimbatore, Tamil Nadu, beyond 15th June 2010 (iii) Request of M/s. Cochin Port Trust for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Port based at Puthuvypeen Ernakulam District, Kerala, beyond 17th April 2011 Item No.45.15: Request for third ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grant of second extension of in-principle approval and change of location of the sector specific SEZ for Building Materials The Board noted that the present proposal is for change of location from Udaipur District, Rajasthan to Udaipur and Chittorgarh Districts, Rajasthan. Though the developer has sought extension of in principle approval, it is in respect of the earlier location for which they were granted approval. The developer must obtain State Government approval for change of location and must apply afresh for a Letter of Approval for a new SEZ. The Board, accordingly disposed off the present proposal for second extension in the validity period of the Letter of Approval. Item No. 45.18: Requests for grant of third extension of in-principle approval After deliberations, the Board granted third extension of the validity of the inprinciple approval for a period of one year beyond the expiry of the validity of the last extension in r/o the following cases:- (i) M/s. Reliance Haryana SEZ Limited for setting up of Multi Product SEZ, over an area of 5000 hectares, at Jhajjar District, Haryana (up to 14th February, 2012) (ii) M/s. LMJ Warehousing Private Limited for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board decided to approve the request of M/s. Mexus Corporation Private Limited for withdrawal of formal approval granted to them for setting up of sector specific SEZ for Electronic Hardware, Software including IT/ITES at Chala, Taluka Pardi, Valsad District, Gujarat, over an area of 11.11 hectares, subject to DC s certificate that the developer has not availed any tax/duty benefits under the SEZ Act / Rules. Item No. 45.22: Request of M/s. La Spirit Liquor Trading Co., KASEZ for broad banding/inclusion of Cigarettes in their existing Letter of Approval The representative of D/o Revenue pointed out that this unit has been approved for trading activity of various types of liquor by KASEZ. The current proposal is for inclusion of cigarettes in their trading activity. D/o Revenue is not keen to encourage setting up of units for manufacturing/trading of cigarettes. DC KASEZ pointed out that this unit will not be manufacturing cigarettes but will only be trading in them after importing the same. Further, the unit will supply the cigarettes to the Duty Free Shops and to the Foreign Vessels calling at Kandla and Mundra Ports and will not be selling the same in DTA and nor w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C SEZ, at Atchutapuram Mandal, Visakhapatnam, Andhra Pradesh for import of Tallow/Tallow oil The representative of the Department of Revenue noted that they have strong reservations about import of Mutton Tallow and Tallow Oil for manufacture of Biodiesel. After deliberations, the Board decided to reject the request of the unit for import of Mutton Tallow (HS code 15020010) and Tallow Oil (HS code 15030000) for manufacturing Biodiesel. Item No. 45.25: Proposal of M/s. Keshwani Exim Pvt.Ltd. for setting up unit in KASEZ for Trading activity of raw salt, Industrial salt, refined free flow Iodized salt, Sugar Grains, Pulses, Spices, Cereals Flour and Honey. The DC, KASEZ had originally requested for approval in r/o sugar, pulses, spices, cereal flour. During the meeting he clarified that the UAC is empowered to take a decision in r/o Sugar Spices, therefore, approval is required in respect of Pulses Cereals Flour. The BoA emphasized that proposals involving consumable items like sugar, pulses, spices, cereals etc. need careful examination so that their domestic availability is not affected. After deliberations the Board approved the request of the unit for tradi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... veloper had given an undertaking that in the event of revenue raastas passing though the SEZ, it will give an alternate way to the users from outside the SEZ area. However, the developer has not been able to do this till date. DC, NSEZ, therefore, informed the Board that he is not supporting the proposal. The board, therefore, after deliberations decided to reject the request of the developer for relaxation of contiguity. The Board also directed DC, NSEZ to examine the matter and recommend consequent action. (ii) Request of M/s. Wellgrow Buildcon Pvt. Ltd., Haryana for relaxation of contiguity The Board considered the report of DC, NSEZ, on this issue, placed before it as per its directions in the meeting held on 18th November, 2010. The Board noted that the two private raastas passing through the proposed SEZ are not revenue raastas. These private raastas have been provided as right of way to the other s man land by mutual understanding. DC, NSEZ also informed the Board that the developer and private individuals jointly hold the right over the private raasta and also that these private raastas are not meant for public thoroughfare and are meant only for private use of the la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons will be finalized in consultation with the DIPP, the Department of Defence Production and the Ministry of Home Affairs. This is because the special conditions incorporated for industrial licenses for the defence sector have been incorporated by DIPP on the recommendations of the Department of Defence Production, which in turn, consulted the Ministry of Home Affairs in the matter. (iv) Each of the consignment of supply to DTA must be thoroughly examined by DC; (v) While selling in the domestic area, only Government Agencies would be allowed to procure the equipments; (vi) All consignment will be accompanied by an authorized person of the Government procuring agency. Item No. 45.31: Request of M/s. SFO Technologies Private Limited, a unit in Cochin Special Economic Zone (CSEZ) for permission to broadband LoA to include items to be supplied to defence units under defence offset facilitation agency (DOFA). The Board decided to consider this item after conduct of the impending Assembly elections in the State of Kerala. Item No. 45.32: Request of M/s. JSL Limited for submission of Bond/Bank Guarantee in respect of liability arising on cancellation of Form-I und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1st December, 2011. (iv) Appeal of M/s. Hansen Drives Limited, a unit in Synefra Engineering Construction Limited SEZ, Tamil Nadu, against the order of DC, MEPZ, rejecting its request for broad banding of LoP to include trading activity as part of authorized operations. (v) Appeal of M/s. SE Electricals Ltd. against the order of Development Commissioner, MPEZ SEZ rejecting its request for removal of waste and scrap in DTA which were arisen out of repair/re-engineering and reconditioning of generators/control panels at appellants factory. The Board decided to consider the above appeals after conduct of the impending Assembly elections in the State of Tamil Nadu. Decisions on the Supplementary Agenda Item No. 45.35: Proposal for setting up of SEZs (i) Proposal of M/s. SmartCity (Kochi) Infrastructure Private Limited for setting up of a sector specific Special Economic Zone for IT/ITES at Puthencruz village, Kunnathunadu Taluk, Ernakulam District, and Kakkanad village, Kanayannur Taluk, Ernakulam District, Kerala, over an area of 46.3773 hectares The Board decided to consider this item after conduct of the impending Assembly elections in the State of Ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 2nd March, 2012). Item No. 45.40: Request for extension of LoP of unit beyond 4th year (i) Request of M/s. Hobel Bellows, a Unit in VSEZ, for extension of validity period of LoP for one more year beyond fourth year beyond 22nd April, 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 22nd April, 2012). Item No. 45.41: Request of SEZ unit for import of prohibited/restricted items (i) Request of M/s. Roxul-Rockwool Insulation India Private Limited, a Unit in Dahej SEZ, for import of Un-granulated Slag, a restricted item After deliberations the Board approved the request of M/s. Roxul-Rockwool Insulation Private Limited for importing the following prohibited/restricted items, subject to the condition that the all the items shall be imported from outside India and no procurement will be made from DTA till prohibition/restriction on exports/imports of such items continues in Foreign Trade Policy (FTP). Further, the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Secretary, Department of Commerce 1. Dr. Rahul Khullar, Chairman BOA Secretary, Department of Commerce. 2. Smt. Praveen Mahajan, 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 S.K. Sinha, Additional Director, DGEP, Department of Revenue, Ministry of Finance. 6. Dr. L. B. Singhal, Joint DGFT, Director General of Foreign Trade 7. Shri Sanjeev Nandwani, Joint DGFT, Kolkata 8. Shri Suresh Kumar K. Secretary Information Technology (IT), Government of Kerala 9. Shri R.J. Shah, CEO, Dahej SEZ, Government Gujarat 10. Shyamal Misra, Director, Department of Industry and Policy Promotion 11. Shri O.P. Sharma, Scientist-E, Department of IT 12. Shri A. K. Gupta, General Manager, RIICO. 13. Shri Manjunath Gonda, Resident Director, Karnataka Udyog Mitra 14. Shri S. K. Rathore, Resident Commissioner, Government of Orissa 15. Shri Wazir Singh, Additional Director, Government of Haryana, Industries Commerce Department 16. Shri Nilesh Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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