TMI BlogMinutes of the 48th meeting of the SEZ Board of Approval held on 19th September 2011 to consider proposals for setting up Special Economic ZonesX X X X Extracts X X X X X X X X Extracts X X X X ..... 010-11, total exports to the tune of Rs. 3,15,867.85 Crore has been made from the SEZs, registering a growth of about 43.11% over the exports for the year 2009-10. Exports during the first quarter of the current financial year i.e. up to 30.06.2011 have been to the tune of Rs. 72,255.49 Crore. Item No. 48.1: Proposals for setting up of SEZs. (i) Request for setting up of a sector specific Special Economic Zone for Petroleum and Oil Gas Industry at Rajayyapeta village, Visakhapatnam District, Andhra Pradesh by M/s. Planet SEZ Private Limited, over an area of 108 hectare The Board noted that the Government of Andhra Pradesh had recommended the proposal vide letter dated 10.08.2011. Since, the land was not in possession of the Developer, the Board decided to grant in-principle approval to the proposal of M/s Planet SEZ Private Limited, for setting up of a sector specific Special Economic Zone for Petroleum and Oil Gas Industry at Rajayyapeta village, Visakhapatnam District, Andhra Pradesh,over an area of 108 hectares. (ii) Proposal of M/s. Indian Strategic Petroleum Reserves Limited, for setting up of FTWZat Padur, Karnataka, over an area of 41.20 hectares. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into with the developer. (ii) Request of M/s. Stylus Commercial Services Private Limited (SCSPL) for codeveloper in the sector specific SEZ for Electronic Hardware and Software including IT/ITES at Rachenhalli and Nagavara villages, Hobli, Outer Ring Road, District Bangalore, Karnataka, being developed by M/s. Manyata Promoters Private Limited After deliberations, the Board approved the request of M/s. Stylus Commercial Services Private Limited for becoming a co-developer in the above mentioned SEZ, for undertaking development of about 21,696 sq. ft. of built up space, in accordance with the codeveloper agreement entered into with the developer. (iii) Request of M/s. Pandit Deendayal Petroleum University for co-developer in Multi Product SEZ at Vagra, District Bharuch, Gujarat, being developed by M/s. Dahej SEZ Limited After deliberations, the Board deferred the proposal, as a reply is awaited to certain queries addressed to Chief Secretary, Gujarat, in response to a reference made by him. (iv) Request of M/s. Artha Builders LLP for co-developer in the sector specific SEZ for Electronic Hardware and Software including IT/ITES at Greater Noida, Uttar Pradesh, being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f issues like request for serving non- SEZ entities, which require further examination on file in consultation with departments concerned, to find suitable resolution. Accordingly, the proposal was deferred . (viii) Request of M/s. Basix Academy for Building Lifelong Employability (B-ABLE) for co-developer in the sector specific SEZ for Food Processing at Tuticorin District, Tamil Nadu, being developed by M/s. CCCL Pearl City Food Port SEZ Limited The proposal was deliberated by the BoA. It was noted that while the importance of value added services offered by a skill-development centre to the SEZ exporting units could not be denied, the proposal contained a number of issues which required further examination on file in consultation with departments concerned. Accordingly, the proposal was deferred. Item No. 48.3: Requests for Authorized Operations BoA considered the proposals for authorized operations and it is clarified that all approvals for authorized operations are subject to the development guidelines approved by EGoM in its meeting dated 24th October 2008, which was noted by the members of the BoA, and State Government Representatives in its meeting held on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... multi-product SEZ at Taluka Shirpur and Khed, District Pune, Maharashtra The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the non-processing area of the SEZ, as given in the table, subject to the condition that the housing facilities shall be for the exclusive use of SEZ employees: - S. No. Name of Authorized Activity No. of Units 1. Residential A. Workers Hostel 160 units 18000 B. Studio Apartment 1 Building 320 units 8600 C. 1 BHK Apartment 1 Building 160 units 7000 D. 2 BHK Apartment 1 Building 320 units 27000 E. 3 BHK Apartment 1 Building 320 units 51500 Total 112100 2. Commercial A. Workers Canteen and Club 2000 B. Retail Market 1000 Total 3000 (iv) Request of M/s. Indian Strategic Petroleum Reserves Ltd. (ISPRL), a co-developer in the sector specific SEZ for Petrochemicals and Petroleum sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Workshop Parking Bay, Weighbridge, Parking Area Water Tank Washing Area 9 26,000 26,000 11. Facilities for Internal Connectivity (in Kms) 1 30Kms 30Kms (vi) Request of M/s. Artha Infratech Private Limited for authorized operations in the sector specific SEZ for Electronic Hardware and Software including IT/ITES at Greater Noida, Uttar Pradesh After deliberations, it was decided that Director (SEZ), Department of Commerce, would visit the SEZ site and submit a factual report before the BoA for facilitating a decision in the matter. (vii) Request of M/s. Anant Raj Industries Limited for authorized operations, in sector specific SEZ for IT/ITES at TP-1, Rai, Sonepat, Haryana The BoA perused the proposal and after deliberations, the Board decided to approve the request for setting up a Bank Branch in the non-processing area of the SEZ. The Bank Branch shall be within the area of 6826.55 sqm already approved, by the BoA in its meeting held on 15th January, 2009, for retail space and utilities like telephone kiosk, food kiosks etc., in the non-processing area. (viii) Request of M/s. Canton Buildwell Private Limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... District Akola, Maharashtra, notified over an area of 100 hectares, subject to DC s certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act / Rules . (iii) Request of M/s. Vivo Biotech Limited for de-notification of the sector specific SEZ for Biotech at village Pregnapur, GajwelMandal, Medak District, Andhra Pradesh, notified over an area of 10.926512 hectares After deliberations, the Board decided to approve the request of M/s. Vivo Biotech Limited for de-notification of the sector specific SEZ for Biotech at village Pregnapur, Gajwel Mandal, Medak District, Andhra Pradesh, notified over an area of 10.926512 hectares, subject to DC s certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act / Rules . Item No. 48.6: Requests for increase/decrease in area (i) Request of M/s. Arshiya International Limited for addition of land in the FTWZ at village Sai, Taluka Panvel, District Raigad, Maharashtra After deliberation, the Board decided to approve the request of M/s. Arshiya International Limited for addition of land admeasuring 3.410 hectares to the already notified SEZ area of 53.635, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uity with the existing SEZ is established. The Board, accordingly, decided that to give its in-principle consent to: (i) Addition of the additional land to the approved SEZ, subject to the condition that the additional area would not be notified till contiguity is established, and alternatively, to, (ii) In-principle approval for the additional land parcel as a separate SEZ subject to State Government approval and fulfillment of all formalities and applicable conditions. The representative of the Government of Kerala sought time to examine the options and revert back on the choice to be exercised by them and the developer. Item No. 48.7: Requests for first extension of validity of formal approvals After deliberations, the Board decided to grant extension of validity of formal approval in respect of each of the following 14 (fourteen) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. Capstone Developer Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at 24 Parganas (South), West Bengal, beyond 29th October, 2011. (ii) Request of M/s. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ha.) (xi) Request of M/s. Best on Health Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotech at Gurgaon, Haryana, beyond 26th February 2012 (xii) Request of M/s. Gujarat Hydrocarbon and Power SEZ Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Oil and Gas including its derivatives (Petrochemicals) at village Vilayat, TalukaVagra, District Bharuch, Gujarat, beyond 5th February 2012 (xiii) Request of M/s. Concord India Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Kadugondi Industrial Area, Kadugondi Plantation village, BidarahalliHobli, Bangalore East Taluk, Karnataka, beyond 29th October 2011 (xiv) Request of M/s. Bangalore International Airport Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Airport at Devanahalli, Bangalore, Karnataka, beyond 28th September 2011 Item No. 48.8: Delayed request for first extension of formal approval (i) Request of M/s. Inox Mercantile Compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Medak, Andhra Pradesh, beyond 21st August, 2011. (vii) Request of M/s. Rudradev Township Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Solankurini village, Madurai Taluk, Madurai District, Tamil Nadu, beyond 25th July, 2011 (viii) Request of M/s. Sterling SEZ and Infrastructure Limited for second extension of the validity period of formal approval, granted for setting up of a multi-product SEZ at Jambusar, District Bharuch, Gujarat, beyond 30th September, 2011 BoA further decided that, in the future, the requests for first and second extension of validity of formal approvals would be examined and decided on file by DoC. Item No.48.10: Requests for third extension of validity of formal approvals After deliberations, the Board decided to grant third extension of validity of formal approval in respect of each of the following 9 (Nine) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. International Biotech Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations, deferred the following two requests till the outcome of the SLPs pending in Hon ble Supreme Court. (i) Request of M/s. Peninsula Pharma Research Centre Private Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Sancoale, Goa, beyond 24th October 2011 (ii) Request of M/s. MeditabSpecialities Private Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Pharmaceuticals at BhutKhamb, Kerim, Ponda, Goa, beyond 22nd August 2011 Item No. 48.11: Requests for extension of in-principle approval beyond fourth year. (i) Request of M/s. Chhindwara Plus Developers Limited for extension of the validity of in-principle approval, granted for setting up of Multi Product SEZ at Saurar Tehsil, Chhindwara District, Madhya Pradesh, over an area of 3487.076 Ha, beyond 30th July, 2011. The Board sought a report from the Principal Secretary (Industry), Government of Madhya Pradesh about the justification for the request and the progress made in the implementation of the project. The Zonal DC concerned may take up the matter acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nit Agro Industries for setting up unit in the multi-product SEZ at Jambusar, Bharuch, Gujarat, being developed by M/s Sterling SEZ and Infrastructure Limited, for processing of pulses (ii) Request of M/s. Jabs International Private Limited a unit in the FTWZ at village Sai, Taluka Panvel, District Raigad, Maharashtra, being developed by M/s. Arshiya International Limited over an area of 53.635 hectares, for import/export of prohibited goods (pulses) and procurement of restricted items from DTA for export (iii) Request of M/s. Haji Sattar Habib Sons for setting up of unit for trading of pulses in the FTWZ at village Sai, Taluka Panvel, District Raigad, Maharashtra, being developed by M/s. Arshiya International Limited, over an area of 53.635 hectares (iv) Proposal of M/s. SRSS Foods for setting up unit in KASEZ for processing of Pulses falling under the chapter heading No. 0713 of the ITC-HS Board expressed its concern over the possibility of DTA transactions in the restricted items and directed the respective Development Commissioners to submit detailed reports as to how they propose to ensure that there no such DTA transactions occur. BoA directed that the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irms the world over. The views of Dept. of Biotechnology were also called for in this regard. These views conveyed vide letter No. JS(A)/Dy.No.1741/2011 dated 15 Sep 2011, state that according to the accepted definition, Biotechnology is the application of science technology to living organisms as well as parts, products etc, to alter living or non-living materials for the production of knowledge, goods and services. It goes on to state that for the purpose of business, commerce and trade, the term Biotechnology includes a variety of activities / products mentioned therein. The Board noted that the developer s request is made on the grounds that they wish to optimize the utilization of the expensive infrastructure created by them, enhance global competitiveness vis a vis biotech competitors operating under this globally accepted business model and increase exports. In light of these grounds the Board approved the proposal, subject to the condition that it would not exceed the limits specified in the above letter dated 15th Sep. 2011 from the Department of Biotechnology, to ensure that the essential nature of the business of the developer and the SEZ would continue to be Biotech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c 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. (ii) Application of M/s. Indian Rotocraft Limited grant of Industrial Licence for manufacture of Helicopter After deliberations the Board approved the proposal of M/s. Indian Rotocraft Limited for setting up a defence production unit in the GMR Aerospace Park SEZ at Samshabad, Hyderabad, Andhra Pradesh for manufacture of Helicopter,subject to the following conditions: (i) In terms of Section 9 of the SEZ Act, 2005 , BoA is the Licensing Authority for setting up of defence units in SEZs. Once a proposal has been approved by the BoA, the licence will be issued by DIPP on receipt of the minutes of BoA. (ii) Exports of such items may be regulated as per the provisions of Foreign Trade Policy and ITC (HS) Code. (iii) The licensing conditions 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... previous approval was granted. The Board, accordingly, ratified the decision. Item No. 48.22: Appeals before BoA (i) Appeal of M/s. Futuristic Metal Trading Private Limited against rejection of its request for setting up a unit, in KASEZ for manufacturing activity i.e. Segregation of Imported Scrap (ii) Appeal of M/s. Globus Metal Trading Private Limited against rejection of its request for setting up a unit, in KASEZ for manufacturing activity i.e. Segregation of Imported Scrap The BoA granted personal hearing to representatives of the appellants. The Board noted that the appeal is against the provisions of Rule 18 (4) (d) of the SEZ Rules, 2006 and rejected the appeals in the above two matters. (iii) Appeal of M/s. Sanmina SCI India Private Limited, a unit in SIPCOT SEZ against the decision of UAC taken in its meeting held on 28.06.2011 The BoA granted personal hearing to representative of the appellant. After detailed deliberations the Board directed that the matter be examined and decided on file by D/o Commerce. (iv) Appeal of M/s. Mclloyd Polymers Private Limited against order of Development Commissioner, Surat SEZ cancellation of extension o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Requests for second extension of validity of formal approvals After deliberations, the Board decided to extend the validity of formal approval in respect of each of the following 02 (Two) developers for a period of one year beyond the expiry of the validity period: (i) Request of Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Madikonda village, Hanamkonda Mandal, Warangal District, Andhra Pradesh, beyond 25th June, 2011 (ii) Request of State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Engineering goods at SIPCOT Industrial Complex, Ranipet, Phase III, Tamil Nadu, beyond 29th July 2011 Item No.48.4: Request for third extension of validity of formal approvals (i) Request of M/s. Jubilant Infrastructure Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Chemicals at Bharuch, Gujarat, beyond 20th August 2011 After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations relating to setting up of the power plant as forwarded by DC, KASEZ vide his letter dated 14th July, 2010. Item No. 48.8: Request of M/s. Zeus Infrastructure Private Limited for reduction of height of the boundary wall of the SEZ and approval for construction of FRP boundary wall After deliberations, the Board granted approval for:- (i) Reduction of height of the boundary wall of the SEZ from 2.4 m to 1.8 m and (ii) Construction of FRP boundary wall. Item No. 48.9: Revision of guidelines dated 27th February, 2009 regarding power generation, transmission and distribution in SEZs Representatives of Department of Revenue (DGEP) sought more time to offer their comments. The Chairman BoA granted two weeks time for the same. It was, decided that, thereafter, the matter would be examined and decided on file by D/o Commerce. Item No. 48.10: Clarification on issues related to dilution of equity in the developer company, transfer of promoter s equity etc. Board was informed that a number of cases seeking clarification on issues related to dilution of equity in the developer company, transfer of promoter s equity, transfer of developer JV, amalgamation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. SAMHPL). Approval of the scheme of amalgamation between M/s. SAMHPL and M/s. Sterling Addlife India Limited (M/s. SAIL), by the Hon ble High Court of Gujarat at Ahmedabad. The meeting ended with a vote of thanks to the Chair. ***** Annexure - 1 List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 19th September, 2011 under the Chairmanship of Commerce Secretary, Department of Commerce 1. Dr. Rahul Khullar, Chairman BOA Secretary, Department of Commerce. 2. Shri A.K. Pujari, Director General of Foreign Trade 3. Smt. Ruchira Pant, Director General of Export Promotion, D/o Revenue, Ministry of Finance 4. Shri Raman Chopra, Director (ITA.I), CBDT, D/o Revenue, Ministry of Finance 5. Shri Vivek Ranjan, Additional Director, DGEP, Department of Revenue, Ministry of Finance 6. Dr. L. B. Singhal, Joint DGFT, Director General of Foreign Trade 7. Shri U.K.S Chauhan, Resident Commissioner, Kerala 8. Shri O.P. Kapoor, Joint DG, EPCES 9. Shri T.A. Khan, ATCP, TCPO, Ministry of Urban Development 10. Shri R.C. Dahra, Additional Director, Government of Haryana, Industries, Haryana, Chandig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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