Minutes of the 110th meeting of the Board of Approval for SEZs held on 5th May, 2022 to consider setting up of Special Economic Zones and other miscellaneous proposals - SEZ - Minutes of the 110th meeting of the SEZ

Minutes of the 110th meeting of the Board of Approval for SEZs held on 26th May, 2022 The One Hundred and Tenth (110th) meeting of the Board of Approval (BoA) for Special Economic Zones (SEZs) was held on 26.05.2022 under the chairmanship of Shri B.V.R. Subrahmanyam, Secretary, Department of Commerce at 11.00 A.M. in Room No. 141, Udyog Bhawan, New Delhi through hybrid mode. The list of participants is annexed (Annexure-I). 110.1 Ratification of the minutes of the 109th meeting of the Board of Approval held on 31.03.2022. The Department of Revenue had invited an attention to their OM no. DGEP/SEZ/19/2022 dated 23.05.2022 in this regard with reference to agenda point no. 109.7(i) of the 109th meeting pertaining to proposal from M/s Cheyyar SEZ Developers Private Limited for setting up of new Multi Sector SEZ over an area of 67.75 Ha at Pelakuppam Village, Villupuram, Tamil Nadu. During the said meeting (109th meeting), the Board was informed that a case was pending against one of the directors, Mr. Lau Wai Kai, in the capacity of occupier of the factory, M/S Fairway Footwear Enterprises Company Limited at Bargur SEZ at the Chief Judicial Magistrate Court, Krishnagiri, Tamil Nadu for violation under the Factories Act, 1948 and also under Tamil Nadu Factories Rules, 1950. The Board, after deliberations, had approved the proposal. DGEP, vide their aforesaid OM dated 23.05.2022, has advised that the outcome of the case against the director of the company may be watched and kept in consideration. Accordingly, the Department of Commerce has, vide letter no. K-43022/13/2022-SEZ dated 25.05.2022, requested DC, MEPZ to do the needful and apprise this department of the final outcome of the case. The Board took the same on record and ratified the minutes of the 109th meeting of the BoA held on 31.03.2022. 110.2 Request for extension of LoA of the Developer (one proposal) 110.2(i) Proposal of M/s. Venkatesh Coke and Power Limited for extension of the validity period of formal approval granted for setting up of FTWZ at Athipattu, Nandianbakkam Puzhuthivakkam Villages, Ponneri Taluk, Thiruvallur District, Tamil Nadu beyond 02.07.2022. The Board, after deliberations, approved extension of the validity of formal approval for a period of three months upto 02.10.2022 provided that DC, MEPZ may ensure that the contiguity as well as other conditions are duly complied with in case of considering any proposal for notifying any part of the approved land while awaiting removal of encumberace in the rest of the approved land parcel. 110.3 Request for extension of validity of Letter of Approval of units (two proposals) 110.3(i) Request of M/s. PNP Polytex Private Limited, a Unit in KIADB Textile SEZ, Hassan, Karnataka for extension of validity of Letter of Approval (LoA) upto 22.02.2023. The Board noted that the unit has applied for an extension after a period of three and a half years. In terms of 3rd proviso under Rule 19(4) of the SEZ Rules, 2006, the Board of Approval may, upon a request in writing by an entrepreneur, and after being satisfied that it is necessary and expedient so to do grant further extension for a further period not exceeding one year, at a time. The Board, further noted that the LoA of the unit was valid upto 13.10.2018. The Board, further noted that extension after a long period of time shall not be normally considered. The Board further noted that: The construction of built up area and development of other infrastructure is 98% complete . The unit was facing protests from local farmers in connection to land acquisition by the developer, KIADB which has now been resolved amicably through negotiation. The Board, after deliberations, approved extension of the validity of LoA of the unit based on justification provided by DC, CSEZ for a further period of three months i.e. up to 25.08.2022 subject to a review of the unit in terms of balance completion of work and financial viability. The approval in this case is an exception and cannot be treated as a precedent in future as it has been given based on special reasons as detailed above. 110.3(ii) Request of M/s BEML Limited, a Unit in KIADB Aerospace SEZ, Hassan, Karnataka for extension of validity of Letter of Approval (LoA) for a further period of one year beyond 04.01.2022. The Board, after deliberations, approved extension of the validity of LOA up to 04.01.2023. 110.4 Requests for co-developer (four proposals) 110.4(i) Request of M/s. Access Healthcare Services Private Limited for Co-Developer status in ELCOT SEZ, Vadapalanji, Madurai, Tamil Nadu. The Board, after deliberations, approved the proposal of M/S. Access Healthcare Services Private Limited for co-developer status to set up an IT/ITES SEZ campus as a captive Unit in the total area with three blocks (A, B C) and each block consisting of 4 floors (Ground Floor+3 Floors) with parking facilities, gymnasium, outdoor sport courts towards employee recreation facilities and construction of service apartments for employees accommodation over an area of 4.01 acres (174,240 Sq. Foot) in Plot no. 13 in the ELCOT SEZ. The authorized operations of the proposed co-developer shall include, Revenue cycle management services to medical billing companies, hospitals, physician practices etc. and also provide software development services (Services) Service Apartments for employees' accommodation . 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. 110.4(ii) Request of M/s. Cybage Software Private Limited, 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. Cybage Software Private Limited for co-developer status for construction, development, maintenance, operation and building a built-up area of 1,20,000 square feet at building footprint 14H at Block 14 within the 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 tern-is 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. 110.4(iii) Request of M/S. Savvy ATS Realty LLP, Ahmedabad for approval as Co-Developer within the 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. Savvy ATS Realty LLP for co-developer status to develop and operate residential building with recreation, entertainment, games area, gym, cafeteria, sport facilities, pennit/liquor shop, convenience shop, etc. in the dual use area of GIFT-SEZ over an area of 4790 square meters (0.479 hectares). 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. 110.4(iv) Request of M/s ANSR Global Corporation Private Limited for Co-Developer status in Vikas Telecom Private Limited SEZ and IT/ITES SEZ located at Devanabeesanhalli Village, Varthur Hobli, Bangalore East, Karnataka. The Board, after deliberations, approved the proposal of M/s. ANSR Global Corporation Private Limited for co-developer status for conversion of bare shell buildings into warm shell buildings over an area of 14,600 sqft at 5 th Floor, Building 2B, Tower 3-Hibiscus and to lease the built up space in the SEZ in accordance with the co-developer agreement dated 07.03.2022 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. 110.5 Proposal for setting up of SEZ (two proposals) 110.5(i) Setting up of a Multi-Product SEZ at Balinong, Changlang District, Arunachal Pradesh over an area of 30.20 Hectares by the Department of Trade Commerce, Government of Arunachal Pradesh. The Board, after deliberations, approved the proposal for setting up of Multi-Product Special Economic Zone at Balinong, Changlang District, Arunachal Pradesh over an area of 30.20 Ha subject to clearance/no objection from the Ministry of Home Affairs for National Security Clearance.DC, FSEZ may also obtain further details from Government of Arunachal Pradesh. 110.5(ii) Proposal of M/S. DLF Limited for setting up an IT/ITES SEZ over an area of 12.612 Ha at Village Kherki Daula, Tehsil- Manesar, Distt- Gurugram (Haryana). The Board, after deliberations, approved the proposal for setting up of IT/ITES SEZ at Village Kharki Daula, Tehsil-Manesar, Distt-Gurugram (Haryana) over an area of 12.612 Ha. 110.6 Miscellaneous proposals (three proposals) 110.6(i) Proposal of M/S. Syndicate Innovations International Ltd. for addition of 'restricted items' to the list of items in the Letter of Approval of the unit in the FTWZ of M/S. Arshiya Northern FTWZ Ltd. at Khurja, District Bulandshahr, Uttar Pradesh. The Board observed that the recommendations of Ministry of Home Affairs were not specific to the restricted items proposed by the unit for inclusion in their LoA in their instant proposal which also includes Air Rifles/Pistols - More than 20 Joules, rather they have drawn reference to their earlier comments on the proposal of the unit already approved by the Board (including Air Pistols/rifles - Less than 20 Joules) in the 98th BoA. The Board, after deliberations, decided to defer the matter and directed to the Development Commissioner re-examine the matter regarding fulfilling the terms and conditions for grant of license under the Arms Act and Rules thereunder and to seek specific recommendations from the Ministry of Home Affairs. 110.6(ii) Request of M/s Ambika Scrap Recycling Pvt. Ltd. for renewal of LoA in respect of their metal scrap recycling unit and plastic recycling unit in KASEZ. The Board noted the following : i. Shed no.394 was allotted to M/s Ambika Scrap Recycling Pvt. Ltd. However, due to non-activity the unit was evicted and the said shed was allotted to another unit of KASEZ i.e. M/s Kandia Exim Pvt. Ltd. ii. The validity of the LoA of metal recycling unit had expired on 31.10.2005 while the plastic recycling unit did not even commence its activity while the LoA was granted on 10.03.1998. iii. Neither the unit and nor the LoAs are in existence as on date. iv. The proposal is not tenable in terms of Rule 19(5)and Rule 19(6A) (1) (2) of the SEZ Rules, 2006. The Board, after deliberations, directed DC, KASEZ to initiate the process of exit of the unit. 110.6(iii) Request of M/s. Persipina Developers Pvt. Ltd. for increase in area of 1.56 Ha (beyond 10%) to their IT/ITES SEZ at Village Bhokarpada, Taluka-Panve1, District-Raigad, Maharashtra over an area of 5.04 Ha. The Board, after deliberations, approved the request of M/s. Persipina Developers Pvt. Ltd. for an increase in area of 1.56 hectares, subject to contiguity of the land in the SEZ being maintained. Decision on Supplementary Agenda 110.7 Request for co-developer (four proposals) 110.7(i) Request of M/s. Rajyash Projects LLP, 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. Rajyash Projects LLP for co-developer status for construction, development, maintenance and operation of commercial building over land admeasuring approx. 2050 sq.mtrs. on building footprint no. 14F in Block 14 in 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. 110.7(ii) Request of M/s. Shivalik Jhanvi Infraspace LLP, Ahmedabad for approval as Co-Developer within the 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. Shivalik Jhanvi Infraspece LLP for co-developer status for development of a residential building on building footprint no. 16D, block 16 in the dual use Non-Processing Area of GIFT SEZ (Sub-Project-l) with development rights of 18,90,000 square feet for residential buildings on land area ad-measuring 5595 square meters (0.559 hectares). 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. 110.7(iii) Request of M/S. Shilp Infraprojects LLP, Ahmedabad for approval as Co-Developer within the 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. Shilp Infraprojects LLP for co-developer status for development of a residential building on building footprint no. 25B 25C, Block 25 in the dual use Non-Processing Area of GIFT SEZ (Residential Sub-Project) with development rights of 15,60,000 square feet for residential buildings on land area ad-measuring 6551 square meters (0.655 hectares). 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. 110.7(iv) Request of M/S India Gateway Terminal Private Limited for co-developer status in Vallarpadam SEZ, Kerala. The Board, after deliberations, approved the proposal of M/S. India Gateway Terminal Private Limited for co-developer status for the following : i. Development of Free Trade Warehousing Zone (FTWZ), operations and management of SEZ. ii. Operations, management and maintenance of infrastructure facilities for modular warehouses and operations thereof. iii. Dry storage cold storage warehouses and other facilities. The above activity shall be undertaken over an area of 4 Ha. in accordance with the co-developer agreement dated 10.06.2021 entered into with the developer subject to standard terms and conditions as per the SEZ Act and Rules and compliance with 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. 110.8 Cancellation of developer/co-developer (two proposals) 110.8(i) Request of M/s. Ashdan Township Ventures Pvt. Ltd.- SEZ Developer (Former M/S. Kumar Builders Township Ventures Pvt. Ltd.) located at Village Hinjewadi and Mann, Taluka Mulshi, District Pune for cancellation of formal letter of approval. The Board, after deliberations, approved cancellation of formal approval granted to the developer over an area of 38.1320 Ha (non-notified portion) subject to fulfillment of all statutory provisions in this regard. 110.8(ii) Request of M/S Embassy Services Private Limited for cancellation of LoA issued to them as co-developer of M/S SNP Infrastructure LLP and transferring its business to Embassy Property Developments Private Limited (EPDPL). The Board, after deliberations, approved cancellation of co-developer status granted to M/s. Embassy Services Private Limited in the aforesaid SEZ. DC, MEPZ may ensure that the subsequent re-organization may be undertaken by the Unit Approval Committee in terms of Instruction no. 109 dated 18.10.2021. 110.9 Proposal for change in sector (one proposal) 110.9(i) Request of M/s Cochin Port Trust, developer of Vallarpadam SEZ, Kerala for change of sector to Multi-Sector SEZ in terms of Rule 6 (A) (i) of SEZ Rules 2006. The Board clarified that clause (d) under sub-rule (2) of Rule 5 of the SEZ Rules, 2006 stipulates that any existing notified Special Economic Zone shall be deemed to be a multisector Special Economic Zone. Therefore, the port based SEZ developed by M/S Cochin Port Trust at Vallarpadam, Mulavukadu Fort, Kochi Village, Ernakulam, Kerala is also a Multi Sector SEZ. 110.10 Proposal for addition in area of developer (one proposal) 110.10 (i) Request of M/s. Aequs SEZ Private Limited for increase in area of 31.96 Ha (beyond 10%) to their sector specific SEZ for Light Engineering Goods and Services at Banapur and Talbal Villages, Kukanur Taluk, Koppal District, Karnataka presently spread over an area of 52.08 Ha. The Board, after deliberations, approved the request of M/s. Aequs SEZ Private Limited for increase in area of 31.96 hectares, subject to contiguity of the land in the SEZ being maintained. 110.11 Request for renewal of LoA of plastic recycling units 110.11 (i) Request from Kandla Special Economic Zone Industries Association and All Plastic Reprocessing Units in Falta Special Economic Zone for renewal of LoA of the -plastic recycling units in KASEZ and Falta SEZ for a period of five years. The Board noted that the validity of extension of LoA of the plastic recycling units (23 in Kandla SEZ, 6 in Falta SEZ and 1 in Noida SEZ as listed in Annexure -A of agenda) as granted by the Board of Approval in its 104th meeting held on 28.05.2021 shall expire on 26.07.2022. Further, the review of such units is required to be undertaken on a case to case basis with all relevant details to be submitted with details including quantum of export and Net Foreign Exchange Earnings in past five years along with the status of litigation, if any. The Board, after deliberations, directed that the validity of LoA of said units shall stand extended further for a period of one month i.e. upto 26.08.2022. In the meantime, the units may submit their individual requests for extension with all necessary details in terms of the SEZ Rules, through their respective Development Commissioners in a time bound manner. The DC shall examine the same and make appropriate recommendation for each unit so that a suitable proposal may be placed in the next Board of Approval which is likely to be held in the last week of July, 2022. 110.12 Industrial License (one proposal) 110.12 (i) Proposal of M/s Hilton Tobaccos Pvt. Ltd. For setting up of SEZ unit at VSEZ, Duvvada, Andhra Pradesh for manufacture of Cigarettes, Cigars, Cheroots and Other Tobacco Products under IDR Act, 1951. The Board noted that meanwhile the comments from DPIIT were received on 25.05.2022. The Board, after deliberations decided to approve the proposal with the following conditions: (i) The manufacturing unit shall have the latest advanced technology. (ii) Special efforts should be made to have minimal pollution effect. (iii) The unit shall use at least 80% indigenous tobacco. (iv) There shall be 100% exports and no DTA sale will be allowed. ANNEXURE - 1 List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on06th May, 2021 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, DGFT. 4. Shri R. C. Sankhla, PR. ADG, DGEP, Department of Revenue. 5. Dr. Prem Verma, ADG (EP), Department of Revenue. 6. Shri Vipul Bansal, Joint Secretary, Department of Commerce. 7. Shri Shanmuga Sundram, Development Commissioner, MEPZ. 8. Shri A. Bipin Menon, Development Commissioner, Noida SEZ. 9. Dr. Amiya Chandra, Development Commissioner, Adani Ports SEZ, Mundra. 10. Shri Akash Taneja, Development Commissioner, Kandla SEZ. 11. Shri Senthil Nathan S, Director, Department of Commerce. 12. Shri B. Ramanjaneyulu, Director, DPIIT. 13. Shri Sachin Singh, Joint Director, DGEP. 14. Dr. S. K. Husain, RO, TCPO, MoHUA. 15. Dr. Krishna Kanth Pulicherla, Scientist-D, Technology Development Transfer Division, Department of Science Technology. 16. Shri Anil Kant Mishra, R.A. TCPO, MoHUA. 17. Shri Kuldeep Singh, Assistant Director, M/o MSME. List of participants connected via Video Conferencing. 1. Shri Vijayendra Kumar, Secretary, Administrative Reforms, Government of Haryana. 2. Shri D.V. Swamy, Development Commissioner, CSEZ and VSEZ (Addl charge). 3. Shri R. Muthuraj, Development Commissioner, GIFT IFSC SEZ Dahej SEZ 4. Shri Shyam Jagannathan, Development Commissioner, SEEPZ SEZ. 5. Shri Virendra Singh, Development Commissioner, Surat SEZ, Gujarat. 6. Ms Anindita Sen Gupta, Development Commissioner, Falta SEZ. 7. Shri S.K. Bansal, Development Commissioner, Indore SEZ. 8. Dr. V. Sraman, Development Commissioner, Mihan SEZ. 9. Md. Noor Rahman Sheikh, Joint Secretary (ED States), Ministry of External Affairs. 10. Shri C.P.S. Chauhan, Joint Development Commissioner, SEEPZ- SEZ. 11. Shri Naveen Kushalappa, Joint Development Commissioner, Bangalore SEZ. 12. Joint Development Commissioner, MEPZ. 13. Shri Vinod Kumar Singh, Scientist-E, MoEF CC. 14. Shri Vikas Singh, Director, ITA-I, CBDT. 15. Shri Bhupesh Verma, Assistant Legal Adviser, Department of Legal Affairs. 16. Dr. Bahadur Singh, ALC, Legislative Department, MoL J.