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Minutes of the 44th meeting of the SEZ Board of Approval held on 14th January 2011 to consider proposals for setting up of Special Economic Zones

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..... al Economic Zones. During the financial year 2009-10, total export of Rs. 2,20,711 crores (approx) has been made from SEZs registering a growth of about 121.40% over the exports for the previous financial year. The export in the first half of financial year 2010-11, has been to the tune of Rs.1,39,841 crore (approx), registering a growth of 55.8% over the exports of corresponding period of the previous financial year. Item No. 44.1: Proposals for setting up of SEZs (i) Request for setting up of a sector specific Special Economic Zone for Gems and Jewellery at village Kalwara, Tehsil Sanganer, District Jaipur, Rajasthan by M/s. Mahindra World City (Jaipur) Limited, over an area of 10.1360 hectares The Board noted that the Developer was in possession of the land. The State Government has also recommended the proposal. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Mahindra World City (Jaipur) Limited, for setting up of a sector specific Special Economic Zone for Gems and Jewellery at village Kalwara, Tehsil Sanganer, District Jaipur, Rajasthan, over an area of 10.1360 hectares. (ii) Request for setting up of a sector specific Special Economic Zone .....

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..... (ii) Request of M/s. Acqview Realty Private Limited for co-developer in the sector specific SEZ for Multi Services at Panvel, District Raigarh, Maharashtra, being developed by M/s. Sunny Vista Realtors Private Limited DC SEEPZ stated that the co-developer agreement provide for sale, lease or transfer by any other format of Service Apartment and/or Star Hotel and/or Iconic Residential Towers. The DC sought deferment of the proposal as the developer is yet to furnish clarification sought by DC in this regard. The Board, therefore, after deliberations, deferred the proposal. (iii) Request of M/s. DLF Utilities Limited for co-developer in the sector specific SEZ for IT/ITES at Rajiv Infotech Park, Plot No. 28, Hinjawadi, Ph. II, Pune, Maharashtra, being developed by M/s. DLF Akruti Info Parks (Pune) Limited After deliberations, the Board decided to grant approval to the request of M/s. DLF Utilities Limited for setting up a co-generation plant to install and commission gas turbine based power generating sets by setting up energy centres to provide electricity at a single source and generate chilled water using vapour absorption machines, in the processing area of said SEZ. The app .....

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..... Ahmedabad, Gujarat It was noted by the Board that the area of the SEZ is only 10.43.10 hectares and also that SEZ is not very far away from the city of Ahmedabad. Board also observed as per policy it has been discouraging setting up of residential apartments/commercial spaces in the smaller SEZs like IT/ITES SEZs, to prevent real estate activity in the garb of SEZ. The Board, therefore, after deliberations, rejected the authorized operations requested by the developer in the non-processing area, of the SEZ. (iii) Request of M/s. Shantha Biotechnics Limited for authorized operations in sector specific SEZ for Biotech and related activities at village Muppireddipally, Mandal Toopran, District Medak, Andhra Pradesh The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the processing area, as given in the table:- S.No. Authorised operations Quantum requested Quantum approved (1) (2) (3) (4) 1. Boiler - 6TPH, 10.5 Bar, FO Fired (Hot water and steam generation including insulated piping for distribution) One set One set 2. Laundry Washing and Services One Lot One Lot 3. Air Compressor, Screw Type capacity 30 .....

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..... of 141.65 hectares and now it has approached BoA for de-notification of the remaining area of 100.85 hectares. After deliberations, the Board decided to approve the request of M/s. Neogen Properties Private Limited for de-notification of the remaining area of 100.85 hectares, subject to DC's certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act/Rules. (iii) Request of State Industrial Development Corporation of Uttarakhand Limited (SIDCUL) for de-notification of the sector specific SEZ for IT/ITES at Dehradun, Uttarakhand, notified over an area of 14.6 hectares After deliberations, the Board decided to approve the request of State Industrial Development Corporation of Uttarakhand Limited for de-notification of the sector specific SEZ for IT/ITES at Dehradun, Uttarakhand, notified over an area of 14.6 hectares, subject to DC's certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act/Rules. Item No.44.7: Requests for withdrawal of formal approval (i) Withdrawal of formal approval granted to M/s. Modern India Property Developers Limited for setting up of sector specific SEZ for IT/ITES at Khopoli District Rai .....

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..... t, Andhra Pradesh, beyond 3rd February 2011. (viii) Request of Gujarat Industrial Development Corporation (GIDC) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Gandhinagar-Sarkhej Highway, Gandhinagar, Gujarat, beyond 6th January 2011. (ix) Request of M/s. Writers and Publishers Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Chindwara, Madhya Pradesh, beyond 18th June 2010. (x) Request of Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Kurukalva villge, Renigunta Mandal, Chittor District, Andhra Pradesh, beyond 11th October 2010. (xi) Request of Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Sarpavaram village, Kakinada Mandal East Godavari District, Andhra Pradesh beyond 11th October 2010. (xii) Request of M/s. Parsvnath SEZ Limited for extension of the v .....

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..... ast extension. (i) M/s. Aurangabad SEZ Limited for setting up of sector specific SEZ for Gems & Jewellery at Aurangabad, Maharashtra (w.e.f. 7th January 2011) (ii) M/s. Nagpur Multi Product SEZ Limited for setting up of Multi Product SEZ at Nagpur, Maharashtra (w.e.f. 9th January 2011) Item No. 44.12: Request of M/s. Indiabulls Realtech Limited a co-developer in the multi product SEZ at villages Musalgaon and Gulvanch, Taluka Sinnar, District Nasik, Maharashtra being developed by M/s. Indiabulls Industrial Infrastructure Limited, for increase in plant capacity from 1350 MW to 2700 MW The Board after deliberations approved the request of M/s. Indiabulls Realtech Limited for enhancement of the capacity of power plant from 1350 MW to 2700 MW. Item No. 44.13: Request of M/s. Torrent Energy Limited a co-developer in the multi product SEZ at District Bharuch, Gujarat being developed by M/s. Dahej Special Economic Zone Limited, for increasing the capacity of the power plant from 1500 MW to 1600 MW The Board noted that M/s. Torrent Energy Limited (TEL), is generating power in the SEZ as a unit and not as a co-developer and that the request of the unit for enhancement of its capacity .....

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..... erations decided that the developer may first approach Unit Approval Committee for setting up of the proposed unit and thereafter, if necessary approach BoA for grant of permission for trading of restricted items. Item No. 44.18: Requests for extension of LoP of units beyond 4th year (i) Requests of M/s. Mastek Limited a unit in M/s. Mahindra World City SEZ, Chennai for extension of LoP beyond 4th December 2010 (ii) Requests of M/s. Wipro Limited a unit in M/s. Mahindra World City SEZ, Chennai for extension of LoP beyond 28th November 2010 (iii) Requests of M/s. Zydus BSV Pharma Private Limited, a unit in the pharmaceutical SEZ at Ahmedabad, Gujarat being developed by M/s. Zydus Infrastructure Pvt. Ltd, for extension of LoP beyond 31st December 2010 The Board, after deliberations, granted extension to these units for a period of one year from the date of expiry of the validity of their LoPs. Item No. 44.19: Requests for extension/renewal of Letter of Approval of M/s. Sameer Industries, KASEZ The Board noted that the unit engaged in manufacturing of recycled items from imported scrap/old and used machinery items and observed that such units should be discouraged from operatin .....

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..... a period up to 31st March 2012 keeping in view the plan of construction by the Developer. Item No. 44.22: Request of M/s. Hansen Drives Limited for grant of approval for undertaking repair/reconditioning etc. of defective gear box units manufactured by third party (Indian and overseas) manufacturers The representative of D/o Revenue pointed out that the unit, in addition to repairing the gear box manufactured by their principals, also have proposed undertaking the repair reconditioning of gear box units manufactured by other manufacturers. This may not be in line with the existing SEZ provisions. The Board noted that the repair/re-conditioning of such hitech equipment in the country has to be taken note of. Accordingly, it was decided that DC MEPZ and the Zonal Customs Authorities will visit the premises of the unit and try and assess the issue and present a report to the Board for its consideration to find a possible solution. The Board, accordingly, deferred consideration of the proposal. Item No. 44.23: Appeals before BoA (i) Appeal of M/s. Erba Diagnostics Mannheim GmbH against rejection of the request for setting up a unit, in SEEPZ Special Economic Zone, Mumbai The repr .....

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..... aid on taxable services provided in relation to the authorized operations in SEZs. Item No. 44.24 (b): Exemption of service tax paid on taxable services provided in relation to the authorized operations in SEZs. The representative of D/o Revenue indicated that the report of TRU on both the issues have been received and are presently under submission in the Ministry of Finance and once it is cleared at appropriate levels, further course of action can be indicated. BOA, accordingly, deferred the proposal for the next meeting of the Board. Item No.44.25: Request for co-developer (i) Request of M/s. Hind Terminals (Mundra) Private Limited for co-developer in the multi product SEZ at Mundra, Kutch, Gujarat, developed by M/s. Mundra Port and Special Economic Zone Limited The Board after deliberations deferred the proposal Item No.44.26: Request for authorized operations (i) Request of M/s. Hiranandani Builders for authorized operations in the sector specific SEZ for IT/ITES at Powai, Mumbai, Maharashtra DC SEEPZ intimated that they need some more time for scrutiny of the proposal and requested to defer the proposal. Accordingly, the request of the developer was deferred by the Bo .....

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..... restricted item, by SEZ units Item No. 44.34: Restriction on export of cotton yarn - exemption to export from DTA to garments manufacturing units in SEZ. The Board noted that recently a decision has been taken that there will be no restriction on procurement of cotton yarn from DTA subject to it being converted into fabric for exports. The exporting units are only restricted in exporting the yarn itself. Accordingly, the Board permitted M/s. Brandix India Apparel City Private Limited and other such three units in Falta and one unit in KASEZ was allowed to procure cotton yarn from DTA subject to it not being exported as yarn and converted into fabric/garments for exports. Item No. 44.29: Request of M/s. Tata Consultancy Services Limited for two additional gates in the sector specific SEZ for IT/ITES at Gandhinagar, Gujarat The Board, after deliberations, remanded the request to UAC for consideration and only in case of disagreement, the same should be brought back to the Board for its consideration. Item No. 44.30: Request of M/s. CCCL Pearl City Food Port SEZ Limited for broad banding of the sector of the SEZ for "food processing" by including allied industries relating to foo .....

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..... ited a co-developer in the sector specific SEZ IT/ITES at Noida, Uttar Pradesh, being developed by M/s. Aachvis Softech Private Limited, for changing the shareholding of the company (iii) Request of M/s. Standard IT Web Solutions Private Limited a co-developer in the sector specific SEZ IT/ITES at Noida, Uttar Pradesh being developed by M/s. Aachvis Softech Private Limited, for changing the shareholding of the company The representative of D/o Revenue said that the current proposal is for sale of SEZs which may not be acceptable. The Board noted that already there are guidelines for transfer of approvals laid down by Board and since such proposals are likely to come up in future as a part of mergers and acquisitions, it is preferable to take a considered view. Accordingly, after deliberations, the Board decided that the matter may be examined by the Department of Commerce on the file. DECISIONS ON TABLE AGENDA Item No. 44.35: Request for Authorized Operations (i) Request of M/s. Ranbaxy Laboratories Limited for authorized operations in sector specific SEZ for Pharmaceuticals at Mohali, Punjab The BoA perused the proposal and after deliberations, the Board decided to approve t .....

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..... Shewale, Development Commissioner, Surat SEZ, Surat 23. Shri C. J. Mathew, Development Commissioner, CSEZ, Kochi. 24. Smt. Deborah Inithea, Deputy Development Commissioner, MEPZ SEZ 25. Shri S. Kishore, Development Commissioner, AP SEZ 26. Shri K.L. Sharma, Development Commissioner, Kakinada SEZ 27. Shri S. K. Sharma, Deputy Director office of Development Commissioner (MSME). 28. Shri Upendra Vasishth, Development Commissioner, Reliance SEZ, Jamnagar, Gujarat 29. Smt. Lata Shukla, Development Commissioner, Mundra SEZ 30. Shri S.N. Patil, Joint Development Commissioner, Dahej SEZ 31. Shri A.K. Rathore, Joint Development Commissioner, ISEZ, Indore, Madhya Pradesh. 32. Shri Ved Prakash, Development Commissioner, Mihan SEZ LIST OF PARTICIPANTS OF DEPARTMENT OF COMMERCE 33. Shri D.K. Mittal, Additional Secretary, Department of Commerce. 34. Shri Anil Mukim, Joint Secretary, Department of Commerce. 35. Shri T. Srinidhi, Joint Secretary, Department of Commerce 36. Shri Navin Talwar, Director, Department of Commerce 37. Shri R. K. Pandey, Under Secretary, Department of Commerce 38. Shri G. Muthuraja, Under Secretary, Department of Commerce 39. Shri Achin .....

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