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TMI BlogMinutes of the 69th meeting of the Board of Approval for SEZs held on 23rd February 2016 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 ..... ression Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotech and related activities at Kodur and Settipalli villages, Chilamathur Mandal, Anantapur District, Andhra Pradesh, beyond 13th February, 2016 The Board, after deliberations, extended the validity of the formal approval up to 13th February, 2017. (iii) 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, 2015 The Resident Commissioner, Odisha Government clarified that the State Government has already registered 500 Ha. of land in favour of Tata Steel SEZ Ltd. and State Government is committed to register the balance 673 Ha. of land in favour of Tata Steel SEZ Ltd. The BOA directed DC Falta SEZ to coordinate with the State Government in this regard. Further, Board of Approval agreed to extend the formal approval of M/s. Gopalpur Special Economic Zone Ltd. up to 17.12.2016 and process the notification for 500 Ha. of land on file for approval. (iv) Request of M/s Kandla Port Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, will have the right to examine the taxability of these amounts under the SEZ Act and Income Tax Act and Rules. This is applicable to all cases of co-developers approved by the BoA in this meeting. The decisions of the BoA on the proposals listed in the agenda are as under.-- (i) Request of M/s. HCL Technologies Limited for co-developer in the sector specific SEZ for IT/ITES at Madurai Ilandaikulam, Tamil Nadu, being developed by M/s. Electronics Corporation of Tamil Nadu Limited After deliberations, the Board approved the proposal of M/s. HCL Technologies Limited for co-developer to develop operate and maintain IT/ITES to provide for 24 hrs uninterrupted power supply, central air conditioning, over an area of 6.75 acres in accordance with the co-developer agreement entered into with the developer, subject to standard terms and condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Zs in Mundra, Kutch, Gujarat. After deliberations, the Board approved the proposal of M/s. Adani Ports SEZ Limited for clubbing of APSEZL-I (Multi product) and APSEZL-II (FTWZ) with APSEZLIII (Multi product) subject to contiguity being maintained. The Board also directed DC, APSEZ to carry out fresh demarcation of processing and non-processing area. (iii) Request of M/s. Telangana Industrial Infrastructure Corporation Limited (TSIIC), developer of sector specific SEZ for Biotechnology at Lalgadi Malakpet Village, Shameerpet Mandal, Ranga Reddy District, Telangana for increase in area of its SEZ The Board, after deliberations, approved the request of M/s. Telangana Industrial Infrastructure Corporation Limited (TSIIC) for addition of an area of 2.136 hectares, increasing the total area of the SEZ to 22.576 hectares, subject to contiguity of the land in the SEZ being maintained. Item No. 69.6 : Appeals before BoA (i) Appeal of M/s. Robinson International Pvt. Ltd., a unit in FSEZ against order dated 25 i May, 2015 of the Development Commissioner FSEZ/UAC The Board heard the appellant and directed them to pay/clear the rental dues latest by 31 st Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ti-product SEZ at Mundra, Kutch, Gujarat, being developed by M/s. Adani Port and Special Economic Zone Ltd along with specific authorized operations The Board considered the above three proposals in detail. The Board took into account the following facts: (i) Section 2(p) of the SEZ Act, 2005 provides that infrastructure facilities means industrial, commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone. (ii) Rule 2(1)(s) of the SEZ Rules, 2006 provides that infrastructure means facilities needed for development, operation and maintenance of a Special Economic Zone. (iii) The Department of Revenue has informed that in case of APSEZ, the SEZ bound cargo was only 5.74% of the total cargo handled by the Port in the existing two container terminals (CT-2 and CT-3) in 2014-15. The corresponding figure for April - November, 2015 is 6.06%. The installed capacity of the container jetties is 2.1 million TEUs. In respect of LPG terminal also the Developer in its presentation has explained that this facility is for catering to the customers in DTA. Hence, this facility is also essentially meant for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wants to develop these facilities without taking any duty free benefits and without taking income-tax benefits, as admissible under the SEZ Act , it shall be free to do so. (iv) Request of M/s. Wockhardt Ltd. a co-developer in the sector specific SEZ for Pharmaceuticals at Shendre, Aurangabad District, Maharashtra, being developed by M/s. Wockhardt Infrastructure Development Ltd. for expansion of scope of existing activity After deliberations, the Board approved the proposal of M/s. Wockhardt Ltd. for expansion of scope of existing activity, in accordance with the co-developer agreement entered into with the developer subject to standard tenors and conditions as per SEZ Act and Rules provided the lease period is for a period of 30 years (renewable). The developer has granted consent to M/s. Wockhardt Ltd. to become a co-developer for the following activities are below:- 1. Central utility (i) Utility block and distribution network (ii) Steam generation plant and chimney (iii) Clean steam generation and supply system Chilled water generation and pumping system (iv) Cooling water generation and pumping system (v) Water for Injection (WFI) g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or IT/ITES at Kancheepuram, Chennai, Tamil Nadu, being developed by Electronic Corporation of Tamil Nadu Limited (ELCOT) for authorized operations. The Board, after deliberations, approved the following authorized activities of the co-developer subject to the condition that the facility developed would be deemed to be non-processing area and also that no O M benefits would be available for the same. S. No. Name of the activity No. of units Area per unit (in sqm) as per FSI /FAR norms as applicable Total area (in sqm) 1 Construction of Guest House/Dormitories 160 rooms in ground + 3 floors NA 9289.36 (ii) Request of M/s Gujarat Industrial Development Corporation (GIDC), for allocation of 5.00 mtr wide corridor through SEZ area at Dahej SEZ for laying pipelines carrying treated effluent from 40 MLD CETP of Dahej The Board, after deliberations, approved allocation of 5.00 mtr wide corridor through SEZ area at Dahej SEZ for laying pipelines carrying treated effluent from 40 MLD CETP o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eveloper to CBDT. (v) Proposal of M/s Plastic Processors Exporters Pvt. Ltd. for reconsideration of request for extension of LoA. After deliberations, in view of the provisions of Rule 18(4) of the SEZ Rules , the Board granted approval for revival and renewal of LoP of M/s. Plastic Processors Exporters Pvt. Ltd. a unit in NSEZ dealing in business of recycling of plastic in SEZ for a period of five years, beyond 30.11.2013 subject to the conditions:- (i) That they will pay rental arrears till date with interest. (ii) All conditions stipulated as per DoC's policy Guidelines of 17th Sept, 2013 are to be made applicable while granting such approval. (iii) Since the unit is not functional and only two years remain in the current LoP, the export obligation for this period would be as per DoC Policy guidelines No. 0.6/10/2009-SEZ dated 17.09.2013 for the first and second year. Any violation of the above prescribed Minimum Physical Export Obligation at the end of 2nd year would lead to imposition of penalty and cancellation of the unit's LOP. (iv) As per Rule 18(4)(b) of the SEZ Rules, no approval for enhancement of the approved im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the acquirer. The BOA decided that such cases resulting in change of ownership would be decided on merits by the Board of Approvals on a case to case basis. Item No. 69.12 : Appeals before BoA (i) Appeal of M/s. Regal Jewellery Mfg. Co., a unit in NSEZ against order dated 18 th January, 2016 passed by UAC, NSEZ. The Board heard the Appellant who informed that he was paying lease rental regularly even though the lease deed was not executed. This appears to be an oversight on the part of NSEZ and cannot be held against the Appellant. Hence the BOA upheld the appeal and decided to cancel NSEZ letter dated 18.01.2016 passed by UAC, NSEZ. (ii) Appeal of M/s. Singhvi Tradelink LLP (formerly M/s. Singhvi Tradelink Private Limited), a unit in KASEZ against order dated 7 th January, 2016 passed by UAC The Board heard the Appellant and observed that the activity proposed by the Appellant falls under the restriction imposed by Rule 18(4) of the SEZ Rules , 2006. Hence BOA rejected the appeal. Decision on Table Agenda (i) Request of M/s. Ford Motor Private Limited (FMPL) for co-developer in the sector specific SEZ for IT/ITES at Sholingana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hawan, New Delhi. 20. Smt. Shiela Tirkey, Section Officer, Ministry of Commerce Industry, Department of Industrial Policy Promotion. 21. Shri Alok Mukhepadhyay. Consultancies, DIPP. LIST OF DEVELOPMENT COMMISSIONERS 22. Dr. L.B. Singhal, Development Commissioner, Noida SEZ 23. Dr. Safeena AN, Development Commissioner, CSEZ 24. Shri A.K. Choudhary, Development Commissioner, Sri City SEZ 25. Shri Upendra Vashisht, Development Commissioner, KASEZ 26. Shri Sanjeev Nandwani, Development Commissioner, FSEZ 27. Ms. Sobhana K.S. Rao, Development Commissioner, VSEZ 28. Shri M.K. Shanmuga Sundaram, Development Commissioner, MEPZ-SEZ 29. Shri K.L. Sharma, Development Commissioner, AP SEZ, Mundra, Gujarat 30. Smt. Lata Shukla, Development Commissioner, Navi Mumbai SEZ 31. Shri Ishwar Singh, Joint Development Commissioner, Indore SEZ 32. Shri Shri N.P.S. Monga, Development Commissioner, SEEPZ SEZ 33. Shri Vijay Shewale, Development Commissioner, Mangalore SEZ LIST OF PARTICIPANTS FROM DEPARTMENT OF COMMERCE 34. Dr. Guruprasad Mohapatra, Joint Secretary, Department of Commerce 35. Shri T.V. Ravi, Director, Department of Commerce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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