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TMI BlogMinutes of the 47th meeting of the SEZ Board of Approval held on 22nd July 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 ..... ts 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. 72,255.50 Crore. Item No. 47.1: Proposals for setting up of SEZs. (i) Proposal of M/s. Radiant Corporation Private Limited, for setting up of a sector specific Special Economic Zone for Electronics Hardware and Software and related activities at Plot No. 20, APIIC Industrial Park, Muppireddypalli village, Toopran (Mandal) Medak District, Andhra Pradesh, over an area of 10.23 hectares. The Board noted that the Developer was in possession of the land. The Government of Andhra Pradesh has also recommended the proposal for formal approval vide their letter dated 18.03.2011. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Radiant Corporation Private Limited, for setting up of a sector specific Special Economic Zone for Electronics Hardware and Software and related activities at Plot No. 20, APIIC Industrial Park, Muppireddypalli village, Toopran (Mandal) Medak District, Andhra Pradesh, over an area ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n separate accounts of all imports and domestic procurements of goods and services. · No transfer of lease rental charges, service charges and other expenses of such nature shall be allowed from an account of the Developer/Co-developer to that of the Unit or vice-versa. The BoA approved and adopted the proposal, as described above. Keeping in view and incorporating the aforesaid guiding principles, the following decision has been taken by the BoA in the matters placed before it:- (i) 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 After deliberations, the Board approved the request of M/s. Marg Digital Infrastructure Private Limited for becoming a co-developer in the above mentioned SEZ to develop, operate and maintain 3.114 hectares in the processing area of the SEZ (to convert the bare shell building into warm shell building). (ii) Request of M/s. Hyderabad Infratech Private Limited for Co-Developer in the sector specific SEZ for IT/ITES at Gachibowli village, Serillingampally Mand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructure Corporation (APIIC) The D/o Revenue observed that M/s. ACN has built up 30000 sqft area as a unit and have applied for co-developer status so that they can lease out 20000 sqft. to other SEZ unit after occupying 10000 sqft for its own SEZ unit. Accepting the request may amount to conferring co-developer status with retrospective effect which may not be permissible. Accordingly the proposal was rejected. (vi) 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 developed by M/s. Artha Infratech Private Limited The representative of CBDT pointed out that the financial details of the agreement between the developer and the proposed co-developer have not been intimated to the Board. The Board, therefore, after deliberations deferred the proposal till the receipt of such details through DC, NSEZ. Item No. 47.3: 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for authorized operations in sector specific SEZ for IT/ITES at village Behrampur, District Gurgaon, Haryana The Board noted that the developer has not given the details of the type of Houses it propose to construct. It was also observed that there was inadequate justification provided for creation of the proposed infrastructure in the non-processing area, as proposed by the Developer. The Board, therefore, after deliberations, deferred the proposal and directed DC, NSEZ to submit a report, addressing the above issues for consideration of the Board. (vi) Request of M/s. Hiranandani Builders for authorized operations in the sector specific SEZ for IT/ITES at Powai, Mumbai, Maharashtra The Board noted that the land on which the Helipad is proposed to be constructed is not a part of the SEZ. Further, the objectives of having a Helipad available to the SEZ can be achieved even if the Helipad is located just adjacent to the SEZ. Therefore, after deliberations, the Board rejected the request of the developer. (vii) Request of M/s. Canton Buildwell Private Limited for authorized operations in the sector specific SEZ for IT/ITES at Gurgaon, Haryana The Board noted that the developer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be prepared in compliance with all statutory, environmental and other requirements and approvals from State Government/other entities. The plan needs to be submitted for examination to the jurisdictional Chief Commissioner (Customs and Excise) alongwith the Development Commissioner, Cochin SEZ, and a report would have to be submitted for consideration of the Board. The Board clarified that the report needs to include an assessment of likely expenses to be incurred for establishing contiguity. The Board further clarified thatno duty benefits would be permissible for the expenses incurred for establishing contiguity. The Board deferred the proposal to the next meeting and advised the applicant to quickly put a plan together so that the case could be taken up for consideration. (iii) Request of Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for addition of land in the sector specific SEZ for Aerospace and Precision Engineering Industries at Adibatla village, Ibrahimpatnam Mandal, Ranga Reddy District, Andhra Pradesh After deliberation, the Board decided to approve the request of Andhra Pradesh Industrial Infrastructure Corporation Limited for addition of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting up of sector specific SEZ for Food Processing at villages Kundli, Sonepat, Haryana, over an area of 100 hectares. (iv) Withdrawal of In-principle approval granted to M/s. Parsvnath SEZ Limited for setting up of sector specific SEZ for Handicrafts at Moradabad-Rampur NH-24, village Chamarua, Mauja Dalpatpur, District Moradabad, Uttar Pradesh The Board noted that the in-principle approval granted to the developer has already expired on 28th December, 2008. The Board, therefore, after deliberations decided to approve the request of M/s. Parsvnath SEZ Limited for withdrawal of in-principle approval granted to them for setting up of sector specific SEZ for Handicrafts at Moradabad-Rampur NH-24, village Chamarua, Mauja Dalpatpur, District Moradabad, Uttar Pradesh, over an area of 100 hectares. (v) Withdrawal of In-principle approval granted to M/s. Parsvnath SEZ Limited for setting up of sector specific SEZ for Automotive & Auto Component at Mauja Tajey, Taluka Bhavel, District Pune, Maharashtra The Board noted that the in-principle approval granted to the developer has already expired on 26th December, 2008. The Board, therefore, after deliberations decided to approve the reque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rivate Limited for withdrawal of formal approval granted to them for setting up of sector specific SEZ for Textiles at village Surangi, Near Silvasa, Dadra and Nagar Haveli, over an area of 73.48 hectares, subject to DC's certificate that the developer has not availed of any tax/duty benefits under the under SEZ Act/Rules. Item No. 47.7: Requests for de-notification (i) Request of M/s. Oval Developers Private Limited for de-notification of the sector specific SEZ for Electronic Hardware and Software at Mouza-Banagram and Sarmaster chowk, District-24 Parganas (South), West Bengal, notified over an area of 11.78 hectares After deliberations, the Board decided to approve the request of M/s. Oval Developers Private Limited for de-notification of the sector specific SEZ for Electronic Hardware and Software at Mouza-Banagram and Sarmasterchowk, District-24 Parganas (South), West Bengal, notified over an area of 11.78 hectares, subject to DC's certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act/Rules. (ii) Request of M/s Airmid Developers Limited for de-notification in sector specific SEZ for IT/ITES at Sector - 106, village Pawala Khusrupur, Gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding IT/ITES' to 'Manufacturing of Equipments, Devices, Accessories including Consumables for Medical and other applications' The representative of the Government of Karnataka requested BoA for deferment of the proposal. Accordingly, the proposal was deferred. (ii) Request of M/s. Goldsouk International Gem & Jewellery SEZ Private Limited for change of sector of the notified sector specific SEZ at village Bhondsi, Tehsil Sohna, District Gurgaon, Haryana from 'Gems & Jewellery' to 'IT/ITES' After deliberations, the Board decided to approve the request of M/s. Goldsouk International Gem & Jewellery SEZ Private Limited for changing the sector of the SEZ from 'Gems & Jewellery' to 'IT/ITES'. (iii) Request of M/s. GMR Hyderabad Aviation SEZ Limited for change of sector of notified SEZ at Mamidipalli village, Hyderabad, Andhra Pradesh from 'Aviation' to 'SEZ in an existing Airport' DC, VSEZ informed the Board that the SEZ falls under the notified area of the Airport as notified by the Government of Andhra Pradesh and that all the conditions necessary for grant of approval for an 'SEZ in an Airport' as defined under Rule 2(z)(c) of SEZ Rules were fulfilled in the said case. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. (ix) Request of M/s. Milestone Buildcon Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Chokkanahalli village, Bangalore, Karnataka, beyond 29th October , 2011. (x) Request of M/s. Deccan Infrastructure and Land Holdings Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Kukatpally village, Balanagar Mandal, RR District, Andhra Pradesh, beyond 2nd July, 2011. (xi) Request of M/s. Deccan Infrastructure and Land Holdings Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ at Mudhvin village, Amangal Mandal, Mahaboob Nagar District, Andhra Pradesh, beyond 24th June, 2011. (xii) Request of M/s. Deccan Infrastructure and Land Holdings Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware and Software including IT/ITES at Khodea Village, Hayat Nagar Mandal, RR District, Andhra Pradesh, beyond 2nd July, 2011. (xiii) Request of M/s. Deccan Infrastructure and Land Holdings Limited for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r specific SEZ for Electronic Hardware at Maheswaram village, Maheswaram Mandal, Ranga Reddy District, Andhra Pradesh, beyond 20th August, 2009. The Board after deliberations condoned the delay and extended the validity of the formal approval up to 20th August, 2012. (ii) Request of MPAKVN (Indore) Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Indore, Madhya Pradesh, beyond 21st June, 2009. (This request was not in the original agenda but was considered by the BoA during the meeting, on request of DC, NSEZ) The Board after deliberations condoned the delay and extended the validity of the formal approval up to 21st June, 2012. Item No. 47.11: Requests for second extension of validity of formal approvals After deliberations, the Board decided to grant second 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. G.P. Realtors Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formal approval, granted for setting up of sector specific SEZ for IT/EH at Sriperumbudur, Tamil Nadu, beyond 25th July, 2011 ( i.e. up to 25th July, 2012). (x) Request of Electronic Corporation of Tamil Nadu (ELCOT) for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Gangaikondan, Tirunelveli, Tamil Nadu 25th July 2011( i.e. up to 25th July, 2012). (xi) Request of Electronic Corporation of Tamil Nadu (ELCOT) for second 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 2011( i.e. up to 25th July, 2012). (xii) Request of Electronic Corporation of Tamil Nadu (ELCOT) for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Jagir Ammapalayam village, Salem Taluk, Salem District, Tamil Nadu beyond 25th July 2011( i.e. up to 25th July, 2012). (xiii) Request of Electronic Corporation of Tamil Nadu (ELCOT) for second extension of the validity period of formal approval, granted for setting u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lopment Corporation Limited for setting up of sector specific SEZ for Gems & Jewellery at Raipur, Chhattisgarh , for a period of one year from the date of the expiry of the last extension (i.e. up to 20th June, 2012). Item No. 47.15: Request for grant of third extension of in-principle approval. The Board was not satisfied with the progress made by the developer in acquiring the land for the SEZ. Therefore, the Board, after deliberations, rejected the request of the M/s. South Coast Infrastructure Development Company of Andhra Pradesh Limited (SCIDCAP) for extension of the validity of the in-principle for setting up of sector specific SEZ for Building Materials at NH-5 between Prakasam and Nellore Districts, Andhra Pradesh, over an area of 118 Hectares. The BoA observed that the developer was at liberty to apply afresh after it fulfilled the prescribed conditions. Item No. 47.16: Requests for extension of LoP of units beyond 3rd year (i) Request of M/s. Keval Exports, a unit in KASEZ for extension of Letter of Permission (LOP) beyond 9th May, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to obtain an undertaking to that effect. Accordingly, the proposal was deferred. Item No. 47.18: Request of M/s. Wardha Power Company Private Limited for an additional entry/exit gate in the sector specific SEZ for Power at Warora, Chandrapur District, Maharashtra, The Board after deliberations allowed the request of the developer for setting up the additional gate subject to the following conditions:- (a) The gate should only be used for exit of trucks used for transportation of coal. (b) The gate should be located as close as possible to the existing gate. (c) The gate shall cease to be in operation after start of transportation of coal for the SEZ units through rail rakes. Item No. 47.19: Appeals before BoA (i) Appeal of M/s. Virtual Employee Private Limited against rejection of its request for setting up a unit, in Noida SEZ The BoA granted personal hearing to representative of the appellant and after deliberations remanded the matter back to the Unit Approval Committee (UAC) for reconsideration of the appellant's application after giving him an opportunity to be heard on the grounds raised by the UAC in rejecting the application. (ii) Appeal of M/s. Citixsys Tech Sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnihotri, Development Commissioner, SEEPZ SEZ, Mumbai 24. Shri Suresh Chandra Panda, Development Commissioner, Noida SEZ, Uttar Pradesh 25. Shri Sanjeev Nandwani, Development Commissioner, Falta, Kolkata 26. Upendra Vasishth, Development Commissioner, Jamnagar SEZ, Gujarat 27. Shri Vijay N. Shewale, Development Commissioner, Surat SEZ, Surat 28. Shri S. Kishore, Development Commissioner, AP SEZ 29. Shri Pravir Kumar, Development Commissioner, KASEZ & Dahej SEZ 30. Smt. Lata Shukla, Development Commissioner, Mundra SEZ 31. Shri K.L. Sharma, Development Commissioner, Sterling SEZ, Gujarat 32. Shri Ved Prakash, Development Commissioner, Mihan SEZ 33. Shri Anil Bamba, Development Commissioner, Sricity SEZ 34. Shri S.N.Patil, Joint Development Commissioner, Dahej SEZ 35. Ms. Bhuvaneswari Ravindran, Joint Development Commissioner, ULCC SEZ, CSEZ 36. Shri A.K. Rathore, Joint Development Commissioner, ISEZ, Indore, Madhya Pradesh. LIST OF PARTICIPANTS OF DEPARTMENT OF COMMERCE 37. Shri Anup Wadhawan, Joint Secretary, Department of Commerce. 38. Shri Sanjeet Singh, Director, Department of Commerce 39. Shri R. K. Pandey, Under Secretary, Department of Commerce 40. Shri Achi ..... 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