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TMI BlogMinutes of the 66th meeting of the Board of Approval for SEZs held on 27th August 2015 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 ..... extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES/BPO/Electronic Hardware at Brooke fields , Village Kundalahalli, Hobli Krishnarajapuram, Taluk Bangalore South, Karnataka, beyond 31st March 2015 The Board after deliberations extended the validity of the formal approval up to 31st March, 2016. (iii) Request of M/s. Adityapur Industrial Area Development Authority for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Automobiles/Auto Components at Adityapur, Jamshedpur, beyond 13th June, 2015 The Board noted that DC, FSEZ had not recommended the proposal for further extension and after deliberations rejected the request of the developer to extend the validity of the formal approval. (iv) Request of M/s. Gopalpur Special Economic Zone Ltd. for further extension of validity period of its formal approval for setting up a multi product SEZ at Gopalpur, District Ganjam, Odisha beyond 17th December, 2014 and change of name of the developer to Tata Steel Special Economic Zone Ltd. The Board after deliberations extended the validity of the formal app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amil Nadu, beyond 7th May, 2015 The Board after deliberations extended the validity of the formal approval up to 7th May, 2016. (xii) Request of M/s. Navi Mumbai SEZ Private Limited for extension of the validity period of formal approval, granted for setting up of multi product SEZ at Dronagiri, Navi Mumbai, Maharashtra, beyond 29th July 2015. The Board after deliberations extended the validity of the formal approval up to 29th January, 2016 with the condition that the Developer shall submit a clear-cut development plan and action plan of the SEZ and approval of the State Government of Maharashtra within that time-frame. DC, Navi Mumbai SEZ was directed to verify the expenditure claimed by the developer to have incurred for the development of this SEZ alongwith progress made so far on ground. (xiii) Request of M/s. Navi Mumbai SEZ Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES-A at Kalamboli, Navi Mumbai, Maharashtra, beyond 25th July 2015 The Board after deliberations extended the validity of the formal approval up to 25th January, 2016 with the condition that the Developer sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded the validity of the in-principle up to 29th January, 2016 and advised the Developer to submit an application along with the requisite documents for notification of the SEZ over an area of 573.806 ha. Item No. 66.3 : Requests for extension of LoP beyond 3rd Year onwards (i) Request of M/s. BEML Limited, a unit in KIADB SEZ, Bangalore for extension of LoP beyond 5th January, 2015 The Board after deliberations extended the validity of the LoP up to 5th January, 2016. (ii) Request of M/s. Western Ghat Agricultural Products Processing Pvt. Ltd (WAPCO), a unit in KINFRA SEZ, (Agro based food processing) at Kakkanchery, Malappurma District, Kerala for extension of LoP beyond 22nd July, 2015 The Board after deliberations extended the validity of the LoP up to 22nd July, 2016. (iii) Request of M/s. Pidilite Industries Limited a unit in Dahej SEZ, Bharuch for extension of LoP beyond 15th August, 2015, The Board after deliberations extended the validity of the LoP up to 15th August, 2016. (iv) Request of M/s. Shree Saibaba Petroleum, a unit in KASEZ for extension of LoP beyond 9th June 2012 The Board after deliberations extended the validity of the LoP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The BOA discussed a reference received from the Government of Kerala in which it was stated that the State Government of Kerala leases out land for industrial purposes for a period of 90 years, as per its policy and requested to permit for continuation of lease period as envisaged in the lease agreement. The Board noted that the Undertakings of Government of Kerala are the developers in Technopark, Infopark, Cyberpark and Kerala State IT Infrastructure Ltd. and after deliberations decided to restore the period of lease , as per the lease agreement signed between the Developer and Co-developer. However, this would be applicable in respect of the SEZ projects located in the State of Kerala only and in all other cases, the lease period will continue to be a period not exceeding 30 years (Renewable). Approval of proposals for Co-developer All approvals for 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 Income Tax Act and Rules. The Assessing Officer, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k (Phase II) After deliberations, the Board approved the proposal of M/s. Padiyath Innovationworld Private Limited for co-developer for development marketing of infrastructure facilities in the SEZ, over an area of 4.11 acres in accordance with the co-developer agreement entered into with the developer, subject to standard terms and conditions as per SEZ Act and Rules. (v) Request of DC KASEZ for cancellation of co-developer status granted to M/s. Worlds Window Infrastructure Logistics Pvt. Ltd. of FTWZ in Kandla SEZ. After deliberations, the Board of Approval cancelled the co-developer status of M/s. Worlds Window Infrastructure Logistics Pvt. Ltd. of FTWZ in Kandla SEZ and directed DC, KASEZ to issue show cause notice to M/s. Worlds Window Infrastructure Logistics Pvt. Ltd for non-implementation of the project. (vi) Request of M/s. Ashray Logistics India Private Limited for co-developer in the multi product SEZ at Nanguneri, Tirunelveli District, Tamil Nadu, being developed by M/s. AMRL Hitech City Ltd. After deliberations, the Board approved the proposal of M/s. Ashray Logistics India Private Limited for co-developer status for Logistics Park inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EZ Act and Rules provided that the lease period is reduced to a period not exceeding 30 years (Renewable). (ix) Request of M/s. Wipro Limited for co-developer in the sector specific SEZ for IT/ITES at Bhubaneswar, Odisha, being developed by M/s. Orissa Industrial Infrastructure Development Corporation (IDCO). After deliberations, the Board approved the proposal of M/s. Wipro Limited for co-developer for site development, boundary wall, roads, installation of water supply sanitation sewage system, power distribution system, telecom facilities, air conditioning system, warehouse, welfare centre including a first aid centre and cr che employee business stay facilities, cafeteria, fuel storage, software development of office building and other activity as may be required in processing area, over an area of 26 acres in accordance with the co-developer agreement entered into with the developer, subject to standard terms and conditions as per SEZ Act and Rules provided that the lease period be reduced to a period not exceeding 30 years (Renewable). Item No. 66.5 : Proposals for setting up of SEZs (i) Request of M/s. HCL IT City Lucknow Private Limited for setting u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor specific Special Economic Zone for IT/ITES at G-4/1, TTC Industrial Area, Ghansoli, Navi Mumbai, over an area of 6.5 hectares. (v) Request for conversion of in-principle approval into formal approval for setting up of a sector specific Special Economic Zone for Electronic Hardware and Software including IT/ITES at Nanakramguda village, Gachibowli, Serilingampally Mandal, Ranga Reddy District, Telangana, by M/s. Mantri Developers Private Limited, over an area of 1.0504 hectares. The Board noted that the Developer was in possession of the land. The Government of Telangana had also recommended the proposal for approval vide their letter dated 31.07.2015. Accordingly, the Board approved for conversion of in-principle approval into formal approval to the proposal of M/s. Mantri Developers Private Limited, for setting up of a sector specific Special Economic Zone for Electronic Hardware and Software including IT/ITES at Nanakramguda village, Gachibowli, Serilingampally Mandal, Ranga Reddy District, Telangana, over an area of 1.0504 hectares. (vi) Request of M/s. M/s. Aqua Space Developers Pvt. Ltd. for setting up of a sector specific SEZ for IT/ITES at Raidurg village, Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apacity of power generation The Board after deliberations, approved the request of M/s. IG3 Infra Ltd. for enhancing the capacity of power generation from 40MW to 48 MW in the non-processing area as per the details given below: S. No. Name of the authorized activity No. of units Area per unit (in sqm.) as per FSI/FAR norms a applicable 1. Enhancement of power project from 40 MW to 48 MW 2 20 acres (iv) Request of M/s. Arshiya International Limited for FTWZ at Pune, Maharashtra for change of name of the developer from Arshiya International Limited to Arshiya Limited and change in shareholding pattern After deliberations, the Board approved the request for change of name of the developer from Arshiya International Limited to Arshiya Limited, and change in shareholding pattern, subject to 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 developers, including securi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th 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. (vii) Inclusion of simulators in the approved list of items for Industrial Licence already approved by BoA in its 61st meeting held on 3rd April, 2014 in respect of M/s Syrma Technology Pvt. Ltd., SEZ unit in Chennai. The Board, after deliberations, approved the request of M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that since the premises had continued to be in the possession of the appellant for the period for which the rents were not paid, the Order passed by DC, Kandla on 29th May, 2015 is just and correct. The applicant must clear his dues as per the directions of DC, KASEZ. The Board accordingly rejected the appeal. (ii) Appeal of M/s. Comverse Network Systems Private Limited Unit-1 against the order passed by the UAC, NSEZ in its meeting held on 23rd June, 2015. (iii) Appeal of M/s. Comverse Network Systems Private Limited Unit-2 against the order passed by the UAC, NSEZ in its meeting held on 23rd June, 2015. The Board heard Shri Sanjeev Kumar Goel, Director (Finance) of the appellant Unit. The Board noted that the appellant had submitted a proposal for transfer of its above said Units (I II) to M/s. Amdocs Development Centre India Pvt. Ltd. under proviso third to Rule 19(2). The Board also noted that the Rule 19(2) is subject to provisions of Rule 74A. Since the appellant company does not satisfy the provisions of Rule 74A, i.e., holding LOA for a period of five years on the date of transfer and to be operational for a minimum period of two years after the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard noted that on the request of the Unit, the Approval Committee allowed them to exit from the SEZ Scheme in terms of Rule 74 of SEZ Rules, 2006. The Board also noted that Approval Committee also cancelled Plot Nos 166,168 and 169 and advised the Unit to handover the possession of the said plots at the earliest. The BOA also noted that it was on the request of the appellant that the Approval Committee had allowed it to exit from the SEZ Scheme subject to fulfillment of relevant formalities in this regard. The BOA after deliberations concluded as follows:- (i) The Approval Committee has rightly decided for cancellation of allotment of Plot as LOA of the unit had already been expired on 28.04.2001 (Trading unit) 08/08/2002 (manufacturing unit) and they had not made any export during the validity period of LOA. (ii) Appellant has made a request to BOA for transfer of assets liabilities under Rule 74A and it does not fulfill the conditions of Rule 74A in view of the following reasons: 1. LOA is not valid as on date. 2. The unit did not hold a valid Letter of Approval for a period of five years. 3. Unit has not been operational for a minimum period of two years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but since no representative of the said Unit had appeared from the appellant for personal hearing, the Board had given another opportunity of the Unit. The Board noted that the Unit was issued LOA on 8.5.2003 and the Unit was functional upto the years 2010-11 and thereafter no business was carried out from the allotted plot. The LoA had lapsed on 10th January, 2014 and the premises had been lying unutilized since 2011-12 and a lease rent of ₹ 4,54,977/- is outstanding towards the Unit. The BOA after deliberating on the facts mentioned above, rejected the appeal. (x) Appeal of M/s. Indo Widecom International Ltd., a unit in NSEZ against order dated 17th October, 2014 of the UAC Shri Manpreet Sood, Advocate appeared and argued the case on behalf of the appellant. The BOA noted that the appeal was listed in the 65th BOA but since no representative of the appellant appeared for personal hearing, the BOA had then given another opportunity to the appellant. The BOA noted that the Unit has been lying non-functional since 2009-10. The LOA has expired on 30.04.2013. During last five years block, unit has made export of ₹ 1.02 Lacs and achieved NFE of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to the conclusion that in view of the huge rental arrears and outstanding realizations to the tune of over ₹ 92 crores against the said Unit, BOA was of the view that the Order dated 25.2.2014 passed by the DC was just and correct. BOA, therefore, rejected the appeal. (xii) Appeal of M/s. Suchi Specialty Fasteners against the order passed by the Development Commissioner of Surat Special Economic Zone dated 25th February, 2015. BOA after deliberations decided to remand the appeal back to DC to take appropriate decision on the request of the Unit after giving the opportunity for personal hearing. Decision on Supplementary Agenda Item No. 66.10 : Requests for extension of validity of formal approvals (i) Request of M/s. Mittal Infratech Pvt. Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Village Sewah, GT Road, District Panipat, Haryana, beyond 14th October, 2012 The Board after deliberations condoned the delay and extended the validity of the formal approval up to 23rd February, 2016. (ii) Request of M/s. State Industries Promotion Corporation of Tamil Nadu Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eveloper agreement entered into with the developer subject to formal approval by the Department of Food Processing Industries and provided the co-developer will not claim any duty benefits on expenditure on O M. The approval is further 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). (ii) Request of M/s. Reliance Capital Ltd., Mumbai for co-developer in the multi service SEZ at Ratanpur, District Gandhinagar, Gujarat, being developed by M/s. GIFT SEZ Ltd. After deliberations, the Board approved the proposal of M/s. Reliance Capital Ltd. for co-developer status for (i) infrastructure development of office building in processing area to undertake export of services, over an area of 3,00,000 sq.ft. and (ii) residential building in non-processing area for management, official staff and the workers of the SEZ units, over an area of 2,00,000 sq.ft., in accordance with the Draft lease-cum development agreement 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co-developer for change of shareholding pattern of the company, subject to 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-developers, 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 rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iotechnology including Bio-Plastics or other Bio based or Bio-degradable Environment Friendly Products, Pharmaceuticals and Chemical sector at Mouza: Jamner and Kharassi, Tehsil Arvi, District Wardha, Maharashtra, over an area of 86.15 hectares. The Board noted that the Developer is in possession of the land. The Government of Maharashtra has conveyed its in-principle approval vide their letter dated 10.08.2015. Accordingly, the Board decided to grant in-principle approval to the proposal of M/s. Wardha Sakhar Karkhana Ltd., for setting up of a sector specific SEZ for Biotechnology including Bio-Plastics or other Bio based or Bio-degradable Environment friendly Products, Pharmaceuticals and Chemical sector at Mouza: Jamner and Kharassi, Tehsil Arvi, District Wardha, Maharashtra, over an area of 86.15 hectares. The approval is subject to compliance of the following conditions by the developer:- (i) Developer has taken a loan of ₹ 151.80 crores by mortgaging the land to Andhra Bank a nationalized Bank, as per the Central Govt. guidelines land should be free from all encumbrances by the developer. (ii) The land location layout plan submitted by the developer indicates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ENT COMMISSIONERS 19. Dr. L.B. Singhal, Development Commissioner, Noida SEZ 20. Dr. Safeena AN, Development Commissioner, CSEZ 21. Shri Sanjeev Nandwani, Development Commissioner, Falta, Kolkata 22. Shri N.P.S. Monga, Development Commissioner, SEEPZ SEZ 23. Shri A.K. Choudhary, Development Commissioner, Sri City SEZ 24. Shri Upendra Vashisht, Development Commissioner, KASEZ 25. Ms. Sobhana K.S. Rao, Development Commissioner, VSEZ 26. Shri M.K. Shanmuga Sundaram, Development Commissioner, MEPZ-SEZ 27. Shri K.L. Sharma, Development Commissioner, Sterling SEZ, Gujarat 28. Smt. Lata Shukla, Development Commissioner, Mundra SEZ 29. Shri Vijay N. Shewale, Development Commissioner, Surat SEZ 30. Shri Ishwar Singh, Joint Development Commissioner, Indore SEZ LIST OF PARTICIPANTS FROM DEPARTMENT OF COMMERCE 31. Dr. Guruprasad Mohapatra, Joint Secretary, Department of Commerce 32. Shri Madhup Vyas, Director, Department of Commerce 33. Shri S.S. Kumar, Under Secretary, Department of Commerce 34. Shri Kabiraj Sabar, Under Secretary, Department of Commerce 35. Shri V.P. Rajvedi, Section Officer, Department of Commerce 36. Shri K.C. Bisw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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