Supplementary Agenda-II for the 83rd meeting of the board of Approval to be held on 19th,2018

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Supplementary Agenda-II for the 83rd meeting of the Board of Approval to be held on
19th June, 2018 at 11.30 A.M. in Room No. 47, Udyog Bhawan, New Delhi

Item No. 83.12: Requests for extension of validity of formal approvals (one proposal)

(i) Request of M/s. Kumar Builders Township Ventures Pvt. Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Village Hinjewadi & Mann, Taluka - Mulshi, Pune, Maharashtra, beyond
26th August 2017 and change in the shareholding pattern of the Developer entity.

Name of the developer:
Kumar Builders Township Ventures Pvt. Ltd.

Sector

: IT/ITES

Location

:
Village Hinjewadi & Mann, Taluk Mulshi, Pune, Maharashtra

Extension : Formal approval to the developer was granted on 27.06.2006. The
developer has been granted 08 extensions, last extension was upto 26.08.2017. The SEZ stands notified as on date. Business Plan a) Investment made till date:

The Developer has already made an investment of Rs. 426.45 Crores in the project. The details of the said investment are as under:

Sl. No. Type of cost Total investment made so far (Rs. in crores) Incremental investment made since last extension (Rs. in crores) 1 Land Cost 368.00 Nil 2 Construction and other costs 58.45 Nil

Total 426.45 Nil

b) Proposed Investment (Additional investment required):

The project will require a total investment of Rs. 636.45 crores over the next 4 years. The detailed business plan for development of SEZ is as follows:

Sl. No. Type of Cost Proposed Investment (Rs. in crores) 1 Construction and other cost 526.45 2 Premium (IT) 50.00 3 Consultancy Fees 10.00 4 Administration Expense 25.00 5 Marketing Expenditure 25.00 Total 636.45

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c) Funding of the project:

The Developer has stated that the cost of the project will be funded by way of internal accruals and term loans from banks.

Details of physical progress

The detail of physical work progress till date is as mentioned below:

Sl. No. Activity % Completion % Completion since last extension Estimated deadline for completion of balance work 1 Boundary Wall 55% Nil March 2022 2 Incubation centre admeasuring 50% Nil March 2022 3 2nd slab for building ‘D’ 20% Nil March 2022

Further, the developer has stated that Classic Hotel Management (India) Pvt. Ltd. (‘Classic Hotel’) part of Solitaire group has agreed to purchase 88.6 % shares of KBTVPL subject to BOA approval. In this regard, the Share Purchase Agreement has been signed with Classic Hotel.

Existing Shareholding Pattern:

Name of shareholding (Equity shares with voting rights) No. of shares held Face Value of shares held (INR)
Percentage Kumar Urban Development Pvt. Ltd. 1,46,19,380 10 61.33 Lalitkumar Kesrimal Jain 65,00,000 10 27.27 LSO Subco no 4 Company 23,54,158 10 9.88 LREF Subco no 4 3,63,234 10 1.52 Total 2,38,36,772

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Proposed Shareholding Pattern: Name of shareholding (Equity shares with voting rights) No. of shares held Face Value of shares held (INR)
Percentage Atul Ashok Chordia (nominee shareholder of Classic Hotel Management (India) Pvt. Ltd. 1 10 0.01 Classic Hotel Management (India) Pvt. Ltd. 2,11,19,379 10 88.59 LSO Subco no 4 Company 23,54,158 10 9.88 LREF Subco no 4 3,63,234 10 1.52 Total 2,38,36,772

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The Developer has stated that due to financial and operational constraints, the construction of the SEZ could not be completed. Therefore, the Developer was looking for potential investors.

The Developer has stated that Solitaire Group has the necessary capabilities and experience to develop a world class IT/ITES SEZ and is committed to ensure its success. Further, Classic Hotels has already made an investment of approx. INR 368 crores through the share purchase agreement.

Particulars Value as on 31.03.2017 Net Worth Rs. 92,53,36,072. Reserves and Surplus Rs. 82,53,36,072.28 Cash and Cash equivalents Rs. 6,68,76,516.25

Reasons for delay:

No reason for the delay in sending the proposal belatedly when the LoA had expired on 26.08.2017, has been put forth.

Recommendation by DC.

The proposal of the Developer for Extension of Formal approval beyond 26.08.2017 and change in shareholding pattern submitted and recommended before the BoA for consideration.

The request is placed before BoA for its consideration.

Item No. 83.13: Requests for extension of LoP beyond 3rd Year onward (one proposal)

(i) Request of M/s. Indus Gene expressions Limited, a unit in M/.s Indus Gene Expressions Ltd. SEZ for Biotechnology beyond 01.01.2018

 LoP issued on

: 02.01.2014  Nature of business of the Unit : Biotech  No. of Extensions

: 3 (Three) DC, VSEZ  LOP valid upto

: 01.01.2018  Request

: Further extension for one year upto 01.01.2019

The unit has stated that they have invested Rs. 2.69 crores in purchasing of Lab Fume Hoods and furniture and accessories and that they do not have any civil construction activity as the developer executes the entire infrastructural facility and providing to unit. The developer has invested Rs. 24.32 crores towards implementation of biotech project in compliances with International standard of Biotech infrastructure to till date. The unit has informed that they

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purchased Laboratory Fume Hoods, furniture and accessories for a value of Rs. 2.69 crores and they will invest remaining Rs. 29.38 crores for the progress of the unit.

Recommendation by DC:

DC VSEZ has recommended the request of the unit for a further period of one year i.e. up to 01.01.2019 in terms of Rule 19(4) of SEZ Rules, 2006.

The request is placed before BoA for its consideration.

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