IN FORCE Agenda SEZ / EOU / FTWZ 2019-01-09

Supplementary agenda for the 87th meeting of the BoA for SEZs to be held on 9th January, 2019.

Document text

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No. F.2/7/2018-SEZ Government of India Ministry of Commerce and Industry Department of Commerce (SEZ Section) Udyog Bhawan, New Delhi Dated the 28" December, 2018

OFFICE MEMORANDUM Subject: Agenda for the (87") Meeting of the Board of Approval on Special Economic Zones (SEZs) scheduled to be held on 9" January, 2019 at 11.00.A.M in Room No. 108 Udyog Bhawan, New Delhi — Forwarding of supplementary agenda reg. 17" The undersigned is directed to refer to this Department’s O.M of even number dated December, 2018 forwarding agenda for the 87" BoA and to forward herewith the Supplementary Agenda for the 87" meeting of the Board of Approval for SEZs scheduled to be held on 9" January, 2019, for information and necessary action. Copy of the supplementary agenda has also been hosted on the website: www.sezindia.nic.in. The addressees located outside Delhi are requested to download the supplementary agenda from the above mentioned website.

  1. The addressees are requested to make it convenient to attend the meeting. (G. Srinivasan)

Under Secretary to the GovernmentTel: 2306 of India2496

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To

  1. Central Board of Excise and Customs, Member (Customs), Department of Revenue, North Block, New Delhi. (Fax: 23092628).

  2. Central Board of Direct Taxes, Member (IT), Department of Revenue, North Block, New Delhi. (Telefax: 23092107).

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  1. Joint Secretary, Ministry of Finance, Department of Financial Services, Banking Division, Jeevan Deep Building, New Delhi (Fax: 23344462/23366797).

  2. Joint Secretary, Department of Industrial Policy and Promotion, Udyog Bhawan, New Delhi.

  3. Joint Secretary, Ministry of Shipping, Transport Bhawan, New Delhi.

  4. Joint Secretary (E), Ministry of Petroleum and Natural Gas, Shastri Bhawan, New Delhi

  5. Joint Secretary, Ministry of Agriculture, Plant Protection, Krishi Bhawan, New Delhi. 8. Ministry of Science and Technology, Sc ‘G’ & Head (TDT), Technology Bhavan, Mehrauli Road, New Delhi. (Telefax: 26862512)

  6. Joint Secretary, Department of Biotechnology, Ministry of Science and Technology, 7" Floor, Block 2, CGO Complex, Lodhi Road, New Delhi - 110 003.

  7. Additional Secretary and Development Commissioner (Micro, Small and Medium Enterprises Scale Industry), Room No. 701, Nirman Bhavan, New Delhi (Fax: 23062315).

  8. Secretary, Department of Electronics & Information Technology, Electronics Niketan, 6, CGO Complex, New Delhi. (Fax: 24363101)

  9. Joint Secretary (IS-I), Ministry of Home Affairs, North Block, New Delhi (Fax: 23092569)

  10. Joint Secretary (C&W), Ministry of Defence, Fax: 23015444, South Block, New Delhi.

  11. Joint Secretary, Ministry of Environment and Forests, Pariyavaran Bhavan, CGO Complex, New Delhi — 110003 (Fax: 24363577)

  12. Joint Secretary & Legislative Counsel, Legislative Department, M/o Law & Justice, A-Wing, Shastri Bhavan, New Delhi. (Tel: 23387095).

  13. Department of& Justice, Shastri LegalBhawan, Affairs New(ShriDelhi. Hemant Kumar, Assistant Legal Adviser), M/o Law 17. Secretary, Department of Chemicals & Petrochemicals, Shastri Bhawan, New Delhi 18. Joint Secretary, Ministry of Overseas Indian Affairs, Akbar Bhawan, Chanakyapuri, New Delhi. (Fax: 24674140)

  14. Chief Planner, Department of Urban Affairs, Town Country Planning Organisation, Vikas Bhavan (E-Block), I.P. Estate, New Delhi. (Fax: 23073678/23379197)

  15. Director General, Director General of Foreign Trade, Department of Commerce, Udyog Bhavan, New Delhi.

  16. Director General, Export Promotion Council for EOUs/SEZs, 8G, 8" Floor, Hansalaya Building, 15, Barakhamba Road, New Delhi — 110 001 (Fax: 223329770)

22.Dr. Rupa Chanda, Professor, Indian Institute of Management, Bangalore, Bennerghata Road, Bangalore, Karnataka

  1. Development Commissioner, Noida Special Economic Zone, Noida.

  2. Development Commissioner, Kandla Special Economic Zone, Gandhidham. 25. Development Commissioner, Falta Special Economic Zone, Kolkata.

  3. Development Commissioner, SEEPZ Special Economic Zone, Mumbai. 27. Development Commissioner, Madras Special Economic Zone, Chennai 28. Development Commissioner, Visakhapatnam Special Economic Zone, Visakhapatnam

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  1. Development Commissioner, Cochin Special Economic Zone, Cochin.

  2. Development Commissioner, Indore Special Economic Zone, Indore.

  3. Development Commissioner, Mundra Special Economic Zone, 4" Floor, C Wing, Port Users Building, Mundra (Kutch) Gujarat.

  4. Development Commissioner, Dahej Special Economic Zone, Fadia Chambers, Ashram Road, Ahmedabad, Gujarat

  5. Development Commissioner, Navi Mumbai Special Economic Zone, SEEPZ Service Center, Central Road, Andheri (East), Mumbai — 400 096

  6. Development Commissioner, Sterling Special Economic Zone, Sandesara Estate, Atladra Padra Road, Vadodara - 390012

  7. Development Commissioner, Andhra Pradesh Special Economic Zone, Udyog Bhawan, 9"" Floor, Siripuram, Visakhapatnam — 3

  8. Development Commissioner, Reliance Jamnagar Special Economic Zone, Jamnagar, Gujarat

  9. Development Commissioner, Surat Special Economic Zone, Surat, Gujarat

  10. Development Commissioner, Mihan Special Economic Zone, Nagpur, Maharashtra

  11. Development Commissioner, Sricity Special Economic Zone, Andhra Pradesh.

  12. Development Commissioner, Mangalore Special Economic Zone, Mangalore.

  13. Government of Andhra Pradesh, Principal Secretary and CIP, Industries and Commerce Department, A.P. Secretariat, Hyderabad — 500022. (Fax: 040-23452895).

  14. Government of Telangana, Special Chief Secretary, Industries and Commerce Department, Telangana Secretariat Khairatabad, Hyderabad, Telangana.

  15. Government of Karnataka, Principal Secretary, Commerce and Industry Department, Vikas Saudha, Bangalore — 560001. (Fax: 080-22259870)

  16. Government of Maharashtra, Principal Secretary (Industries), Energy and Labour Department, Mumbai — 400 032.

  17. Government of Gujarat, Principal Secretary, Industries and Mines Department Sardar Patel Bhawan, Block No. 5, 3rd Floor, Gandhinagar — 382010 (Fax: 079-23250844).

  18. Government of West Bengal, Principal Secretary, (Commerce and Industry), IP Branch (4'" Floor), SEZ Section, 4, Abanindranath Tagore Sarani (Camac Street) Kolkata — 700 016

  • 48.47. GovernmentChennaiGovernment — 600009ofof Kerala,Tamil (Fax: 044-25370822).Nadu,PrincipalPrincipalSecretarySecretary(Industries),(Industries),GovernmentFort St.Secretariat,George, Trivandrum — 695001 (Fax: 0471-2333017).

  • 49.Government of Haryana, Financial Commissioner and Principal Secretary), Department of Industries, Haryana Civil Secretariat, | Chandigarh (Fax: 0172-2740526).

    1. Government of Rajasthan, Principal Secretary (Industries), Secretariat Campus, 51. Bhagwan Das Road, Jaipur — 302005 (0141-2227788). Government of Uttar Pradesh, Principal Secretary, (Industries), Lal Bahadur Shastri Bhawan, Lucknow — 226001 (Fax: 0522-2238255).

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  1. Government of Punjab, Principal Secretary Department of Industry & Commerce Udyog Bhawan), Sector -17, Chandigarh- 160017.

  2. Government of Puducherry, Secretary, Department of Industries, Chief Secretariat, Puducherry.

  • 54.Government of Odisha, Principal Secretary (Industries), Odisha Secretariat, Bhubaneshwar— 751001 (Fax: 0671-536819/2406299).

    1. Government of Madhya Pradesh, Chief Secretary, (Commerce and Industry), Vallabh Bhavan, Bhopal (Fax: 0755-2559974)
  1. Government of Uttarakhand, Principal Secretary, (Industries), No. 4, Subhash Road, Secretariat, Dehradun, Uttarakhand
  • 57.Government of Jharkhand (Secretary), Department of Industries Nepal House, Doranda, Ranchi — 834002.

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  1. Union Territory of Daman and Diu and Dadra Nagar Haveli, Secretary (Industries), Department of Industries, Secretariat, Moti Daman — 396220 (Fax: 0260-2230775).

59.Government of Nagaland, Principal Secretary, Department of Industries and Commerce), Kohima, Nagaland.

  1. Government of Chattishgarh, Commissioner-cum-Secretary Industries, Directorate of Industries, LIC Building Campus, 2" Floor, Pandri, Raipur, Chhattisgarh (Fax: 0771-2583651).

Copy to: PPS to CS/ PS to AS (BBS) / PS to DS (SNS).

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Supplementary Agenda for the 87" meeting of the Board of Approval to be held on gth January, 2019 at 11.00 A.M. in Room No. 108 , Udyog Bhawan, New Delhi

Item No. 87.6: Requests for extension of validity of formal approvals (one proposal)

87.6(i) Request of M/s. Brooke fields Real Estates and Projects Private Limited in the Brookefields SEZ for extension of Letter of Permission (LOP) beyond 31.03.2019 for extension upto 31.03.2020.

  • ° LoP issued on (date): 31.03.2010.

  • ° Nature of business of the Unit: IT/ITES/BPO/Electronic Hardware e No. of Extensions: The developer has been granted 6 (six extensions). ° LOP valid up to (date) 31.03.2019 e Request: For further extension for 7" year, up to (date) 31.03.2020.

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Present Progress:

|(a) Details ofBusiness plan:||
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|ProposedInvestment(Rs.incrores)<br>(1. **[**LandCost 00<br>[2<br>Construction Cost<br>1,084 SSS<br>pfToth2||
|(b) Incremental Investment|made so far and incremental investment since last|
|Extension:||
|S.No. |TypeofCost|Total Investmentmade sofar|Incremental<br>(Rs. in lakhs/crores) up to| investment (Rs. in<br>December26" 2017<br>crores)<br>since<br>last|
||extension|
|1. | Land cost|-(Land Cost fully<br>200|
|2. |Material<br>Procurement|;<br>incurred)<br>269<br>129|
|[Tol4<br>—“‘i‘CSC*r||

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  • (c) Details of physical progress till date :-

S. No. | Authorized activity |% % completion | Deadline for completion | during last one year | completion of balance work 22.04.2019 31.12.2020 Detailed reasons for delay :- The Company Brookfield Real Estates and Projects Private Ltd was granted formal approval by the Government of India to set up a IT/ITES/BPO/Electronic Hard Ware Special Economic Zone at village Kundalahalli Hobli, Krishnarajapuram,

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Bangalore-South, Karnataka. M/s Brigade properties Pvt. Ltd, a subsidiary of Brigade Enterprises Limited ( Brigade Group) acquired 100 percent stake in the Company to pursue the development of the SEZ.

Meanwhile, there was a change of Shareholding in the Company in 2015 wherein Brigade Properties Pvt., Limited became a shareholder and commenced the development of the Project.

The new management i.e. Brigade Group has acquired the stake in the company with an intension to develop a world class SEZ. The Company took all efforts to obtain the various approvals required for developing the SZ project and presently The project is progressing as per schedule and construction and development works on project site are going on in full swing. All blocks are under construction and are being constructed at a rapid pace.

As a proof of this, the applicant has enclosed site photographs and with an assurance that the SEZ will be made operational by d March 2020.

Recommendations by DC

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DC,CSEZ has recommended the request for 7" time extension of LOP for a period of one year up to 31.03.2020.

The request is placed before BOA for its recommendations.

Item No. 87.7: Request for extension of LoP beyond 3" Year onwards (one proposal)

87.7(i) Request of M/s Kusum Healthcare Pvt. Ltd. in Indore SEZ for extension of Letter of Permission (LOP) beyond 28.02.2019 for one year up to 28.02.2020.

  • ° LoP issued on : 14.06.2010 e Nature of business of the Unit : Manufacturing of Tablets, Capsules, Ointments, Dry Syrups & Injections.

  • e No. of Extensions : (03) by DC Indore SEZ beyond original validity & (05) by BoA (SEZs)

  • ° LOP valid upto : 28.02.2019 e Request : Further extension for one year, upto 28.02.2020

(a) Details of Business plan:

|S.No.|TypeofCost|Proposed|Proposed Investmé|
|---|---|---|---|
|||Investment|(Revised plan)|
|||(Original plan)|(Rs. in crores)|
|||(Rs. in crores)||
|oA|SiteDevelopment&|45.15|47.49|
||Building Construction|||
||Plant& Machinery|31.33|36.17|
||Electrical Installations|||
|5,|Pre-Operative Expense/|| 8.71|10.80|
||Other Misc. CAPEX|||
|||90.57|101.14|
|The cost ofthe project has been revised and increased|||from the initially|
|proposedRs.90.57crorestoRs.101.14crores.||||

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(b) Incremental Investment made so far and incremental investment since last extension:

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|S.No. |Type ofCost|S.No. |Type ofCost||Total investment |Incremental Investment|Total investment |Incremental Investment|
|---|---|---|---|---|
||||made so far (Rs. | since lastextensionup to||
||<br>[tand<br>T<br>2<br>Site Development&|||incrores)<br>30.11.2018 (Rs.incrores)<br>47.49<br>2.34||
||Building Construction||||
|3.<br>Pre-Operative|||10.80<br>2.09||
||Expense / Other Misc.||||
||CAPEX||||
|Details|ofphysicalprogress|till date:-|||
|S.No. |Activity||% completion] % completion||Deadline for|
||||during last one|completion of|
||i. <br>2,|year<br>balancework<br> [Land<br>[100%<br>[Fully<br>completed _|<br>SiteDevelopment | 100%<br>Balancebuilding | Fullycompleted<br>& Building<br>work completed||||
||Construction||||
|a.|Plant&Machinery||100%|BalancePlant&|Fullycompleted|
||||Machinerywork||
||||completed||
|4.|| Electrical Installatio 100%||Balance Electrical |Fullycompleted||
||||work completed||
|5.|Pre-Operative|100%|Balanceother|Fullycompleted|
||Expense / Other||CAPEX||
||Misc. CAPEX||completed||
|||||completed|

(c) Details of physical progress till date:-

Detailed reasons for delay:

  • e Being a Pharmaceutical unit, the unit has to obtain approval of its manufacturing facility from various Regulatory Authorities like MHRA, MCC/TGA, PIC’s, FDA & WHO GMP whose process for filing application can be started only after completion of manufacturing facility.

  • e The project is fully complete and all the plant & machinery, utilities, electrical installations etc. has been done. The unit has started undertaking exhibit batches and applied for approvals from various Regulatory Authorities like FDA, WHO-GMP, MCC/TGA, MHRA etc. The unit has obtained FDA GMP certificate for its facility, which is valid up to June 2023; the WHO audit was conducted in October 2018 and the certification is expected in December 2018; the MHRA audit by European countries is to be conducted in the month of January 2019. According to the unit, the audit process of various Regulatory Authorities is very stringent and only after obtaining approvals from these authorities, which takes around 6-8 months, the unit can commence commercial production.

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  • e The unit has assured to start commercial production after obtaining Regulatory Approvals from various European authorities and commence the commercial production before February, 2020.

Recommendation by DC:

DC Indore SEZ has recommended the request of extension of LOP for a further period of one year up to 28.02.2020 in view of the following:-

Unit has made expenditure of Rs. 101.14 crores against the projected cost of Rs. 90.57 crores. An amount of Rs. 10.58 crores has been incurred since the last extension and physical progress of the project is 100%. The request is placed before BOA for its consideration. Item No.87.8 Proposal for setting up of new SEZs (one proposal) 87.8(i) | Request of M/s. Aequs Private Limited, Aequs Consumer Products SEZ, for setting up of SEZ in Banapur and Talbal Villages, Kukanur Taluka (erst. Yelburga Taluka), Koppal District, Karnataka Sector Specific “Light Engineering Goods and Services”.

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Documents required for setting up of new SEZ for the consideration of the BoA and grant of LoA

==> picture [441 x 333] intentionally omitted <==

----- Start of picture text -----<br> SI No. Name of Document Availability<br>status<br>Completed Form A (with enclosures)<br>DC’s Inspection Report<br>State Government’s Recommendation<br>iv. DC’s Recommendation for national Security Clearance as per | Yes. Security<br>guidelines issued by the Ministry of Home Affairs Clearance not<br>required.<br>v. Fulfillment of Minimum Land Area Requirement in terms of the | Yes<br>Rule 5 of the SEZs, Rules, 2006<br>vi. Exact Particulars of the identified area for setting up SEZs as | Yes<br>provided in Section 4(i) of the SEZs Act, 205<br>Vii. Certificate from the concerned State Government or its authorized |Government of<br>agency stating that the developer(s) have Legal Possession of the | Karnataka has<br>land; stated the land is<br>in possession of<br>M/s Aequs Pvt.<br>Ltd. through its<br>intermediaries<br>Irrevocable rights to develop the said area as SEZs and<br>|ix.| That the said area is free from all encumbrances<br>Where the Developer has leasehold right over the identified area, the |Not applicable<br>lease shall be for a period not less than twenty years. as the land is<br>freehold<br>The identified area shall be contiguous, Vacant and is not having | Certified — by<br>public thoroughfare DC.<br>----- End of picture text -----<br>

Recommendation by DC:

DC, CSEZ has recommended the proposal.

The proposal is placed before the BoA for consideration.

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Item No. 87.9: Change of Shareholding Pattern / change of name (four proposals)

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87.9(i) Proposal of M/s. ITPG Developers Pvt. Ltd., developer of Electronic Hardware & IT/ITES SEZ at Village Behrampur, Gurugram (Haryana) for change in shareholding pattern of the company.

of M/s. G.P. Realtors Pvt. Ltd. had been granted LOA dated 14.11.2006 for setting up Electronics Hardware & IT/ITES Special Economic Zone. DOC had initially notified 18.86858 hectare area of this SEZ at Village Behrampur, Distt-Gurgaon (Haryana) was notifiedof SEZ onis 04.025. 5 9723.2009.hectares.After variousRecently,additiC o nmpetent& deletionAuth o frity, land theDOC presentvide notifiedletter datar e da 01.10.2018 had approved the proposal of the developer for transfer of formal approval dated 14.11.2006 from M/s. G.P. Realtors Pvt. Ltd. to M/s. G.P. Realtors 1 Pvt. Ltd. alongwith change in shareholding pursuant to the approval of the composite Scheme of Arrangement by NCLT, Chandigarh vide Order dated 11.07.2018 and change of name of M/s. G.P. Realtors 1 Pvt. Ltd. to ‘ITPG Developers Pvt. Ltd.’, which had been conveyed to the developer vide this office letter dated 23.10.2018. The developer had executed Bond-cum-LUT which has been accepted by the Competent Authority. This SEZ is yet to become operational. Formal approval of the SEZ is valid upto 03.05.2019.

Details of shareholding pattern of the company are given below:

Existing shareholding pattern as on date i.e. Proposed shareholding pattern 07.12.2018 Name of shareholder % Name of | % Daisu shareholding shareholder shareholding Ltd.) Ltd. (Earlier known as AZCO | 100% AIGP 1 Pte. Ltd. | 100% (including shares held by its (including the nominee on their behalf) shares held by its nominee on their behalf) Reason for change in shareholding: subsidiaryDeveloper has mentioned that the M/s. ITPG Developers Pvt. Ltd. is a wholly owned part of Daisu Limited, Mauritius and is an affiliate ofAscendas-Singapore Group. As a by of the internal group restructuring of the Ascendas-Singbridge Group, all the shares held Daisu, constituting 100% of the equity share capital of the company is proposed to be transferred to M/s. AIGP 1 Pte. Ltd. AIGP | Pte. Ltd., is a company incorporated under the laws of Singapore. AIGP 1 is an affiliate of the Ascendas-Singbridge Group. The registered office and principal place of business ofthe Company is located at 1 Fusionopolis Place, #10-10 Galaxis, Singapore 138522. The Company is a 70:30 joint venture between Reco Caladium Private Limited and Ascendas India Growth Programme 1 Pte. Ltd. The principal activity of the company is holding strategic investments with respect to development of SEZs information technology parks and other development sectors. the Ascendas-Singbridge is Asia’s leading provider of sustainable urban solutions. With combined capabilities of Ascendas and Singbridge, the group is uniquely placed to undertake urbanization projects spanning townships, mixed-use developments and business/ industrial parks. Headquartered in Singapore, Ascendas-Singbridge has projects in 29 cities across 10 countries in Asia, including Australia, China, India, Indonesia, Singapore and South Korea.

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In India, Ascendas-Singbridge specializes in developing, managing and marketing IT Parks, industrial & logistics parks, business parks, science parks, hi-tech facilities, offices and integrated developments. Leveraging its strong track record and best practice in the region, Ascendas-Singbridge offers a level of service and quality to its tenants which stands way above the rest.

Recommendation of DC:

Development Commissioner, NSEZ has recommended the proposal.

The request is placed before BOA for its consideration.

87.9(ii) Approval of demerger of M/s. HGP Community Pvt. Ltd. into M/s. Festus Properties Pvt. Ltd. and M/s. Melorinia Hospitality Pvt. Ltd. granted by Hon’ble National Company Law Tribunal, Mumbai Bench and change of implementing agency in respect of Formal Approval from M/s. HGP Community Pvt. Ltd. to M/s. Festus Properties Pvt. Ltd. M/s. HGP Community Pvt. Ltd. (earlier known as M/s. Hiranandani Builders) stands notified on 13.04.2007.

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The developer has informed that Hon’ble NCLT has inter-alia approved the demerger of the SEZ business/undertaking of HGP Community Pvt. Ltd. to M/s. Festus Properties Pvt. Ltd. Both the companies i.e. HGP Community Pvt. Ltd. & Festus Properties Pvt. Ltd. are having the same shareholding & control pattern.

Further M/s. Festus Properties Pvt. Ltd. has submitted an undertaking that they shall comply with all the provisions of the SEZ Act, 2005 regulations and other rules as obligations of the SEZ as notified.

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M/s. Festus properties Pvt. Ltd. has also submitted copy of Annual Report of Festus Properties Pvt. Ltd. for the financial year 2017 and Chartered Accountant Certificate on capability of Festus properties Pvt. Ltd. wherein they have stated that the SEZ business earned a rental income of Rs. 148.94 crores for the year ending 31.03.2018. Pursuant to the transfer of the SEZ business Festus Properties Pvt. Ltd. is capable of meeting and discharging all its obligation.

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Hon’ble NCLT vide its order dated 24.08.2018 has approved demerger of M/s. HGP Community Pvt. Ltd. into M/s. Festus Properties Pvt. Ltd.

As per the MoA, M/s. Festus Properties Pvt. Ltd. was incorporated on 11.05.2016 interalia for the purpose of carrying on the business of owning, operation and maintaining of SEZ and the business of acquiring, managing and letting out commercial properties and also maintenancef the said properties.

DC, SEEPZ has stated that there is no change of shareholders consequent upon NCLT

order.

Recommendation by DC

O/o DC, SEEPZ SEZ has recommended the proposal.

The request is placed before BOA for its consideration.

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87.9 (iii) Request of M/s. DLF Assets Pvt. Ltd., Co-developer of IT/ITES SEZ of M/s. ; DLF Ltd. at Village Silokhera, Sector-30, Gurugram (Haryana) for change in shareholding pattern of the company.

M/s. DLF Assets Pvt. Ltd. had been granted LOA on 07.05.2007 & subsequent Corrigendum on 14.05.2007, as a Co-developer of the IT/ITES SEZ of M/s. DLF Ltd. located at Sector 30, Silokhera, Gurgaon for ‘For developing infrastructure facilities in the aforesaid SEZ’. The BoA vide DOC letter dated 22.05.2007 had also approved authorized operations to be carried out by the co-developer within the Processing Area of SEZ namely, (i) Office Space (Warmshell), (ii) Power generation and power backup facilities through DG set., (iii) Air Conditioning and Chillers, (iv) Shopping arcade and/ or retail space, (v) Business and / or convention centres, (vi) Foods services including cafeteria, foods court(s), Restaurants, coffee shops, canteens and cateringfacilities, (vii) Clinic and medical centres, (viii) Wi Fi and / or Wi Max Services. Further, the BoA had also approved the revised Co-developer Agreement dated 20.03.2008, entered between the Developer & Co-developer and the approval had been conveyed to the Co-developer through a fresh LOA dated 01.06.2009 ‘For developing, operating and maintaining various kinds of infrastructure facilities”. The co-developer had executed Bond-cum-LUT which has been accepted by the Competent Authority.

Details of shareholding pattern of the company are given below:

|pattern|pattern|
|---|---|
|shareholder<br>shares<br>shareholding | shareholder<br>shares<br>shareholding<br>Caraf Builders &|31,45,50,914 |100%<br>DLFCyberCity|31,45,50,914 |100%<br>Constructions Private<br>Developers<br>Limited (Along with<br>Limited (Along||
||Nominees)|

Reason for change in shareholding:

dated The Co-developer has informed that Hon’ble NCLT, Chandigarh Bench vide its Order 27.09.2018 has approved the merger / amalgamation of M/s. Caraf Builders & Constructions Pvt. Ltd. with its holding company i.e. DLF Cyber City Developers Ltd. with effect from the appointed date i.e. closing hours of March 31, 2016. The Co-developer has informed that DLF Assets Pvt. Ltd. (DAPL) was 100% subsidiary of Caraf Builders & Constructions Pvt. Ltd. (CARAF) and CARAF was 100% subsidiary of DLF Cyber City Developers Ltd. (DCCDL). The Co-developer has submitted certified copy of NCLT Order dated 27.09.2018 issued by Registrar on 05.10.2018. The Co-developer has also furnished a flow-chart showing shareholding structure pre & post merger of M/s. Caraf Builders & Constructions Pvt. Ltd. with its holding company i.e. DLF Cyber City Developers Ltd.

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Recommendation of DC:

Development Commissioner, NSEZ has recommended the proposal.

The request is placed before BOA for its consideration.

87.9(iv) Request of M/s. DLF Assets Pvt. Ltd., Co-developer of IT/ITES SEZ of M/s. DLF Cyber City Developers Ltd. at Sector-24 & 25A, DLF Phase-III, Gurugram (Haryana) for change in shareholding pattern of the company. the M/s. DLF Assets Pvt. Ltd. had been granted LOA on 01.05.2007, as a Co-developer of IT/ITES SEZ of M/s. DLF Cyber City Developers Ltd. located at Sector-24 & 25A, DLF

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Phase-III, Gurgaon for “Development of Infrastructure in the said SEZ”. The Co-developer had executed Bond-cum-LUT which has been accepted by the Competent Authority.

Details of shareholding pattern of the company are given below:

|pattern|shareholding|pattern|||
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|Name<br>of |No. of equity |%<br>Name<br>shareholder<br>shares<br>shareholding | shareholder||of |No.|No.<br>of equity |%<br>shares<br>shareho||
|Caraf Builders & |31,45,50,914 | 100%|DLF<br>Cyber|City||31,45,50,914|Iding<br> |100%|
|Constructions|Developers Limited||||
|Private<br>Limited|(Along<br>with|its<br>6|||
|(Along with its 6<br>Nominees)|Nominees)||||

Reason for change in shareholding:

The Co-developer has informed that Hon’ble NCLT, Chandigarh Bench vide its Order dated 27.09.2018 has approved the merger / amalgamation of M/s. Caraf Builders & Constructions Pvt. Ltd. with its holding company i.e. DLF Cyber City Developers Ltd. with effect from the appointed date i.e. closing hours of March 31, 2016. The Co-developer has informed that DLF Assets Pvt. Ltd. (DAPL) was 100% subsidiary of Caraf Builders & Constructions Pvt. Ltd. (CARAF) and CARAF was 100% subsidiary of DLF Cyber City Developers Ltd. (DCCDL). The Co-developer has submitted certified copy of NCLT Order dated 27.09.2018 issued by Registrar on 05.10.2018. The Co-developer has also furnished a flow-chart showing shareholding structure pre & post merger of M/s. Caraf Builders & Constructions Pvt. Ltd. with its holding company i.e. DLF Cyber City Developers Ltd.

Recommendation of DC:

Development Commissioner, NSEZ has recommended the proposal.

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The request is placed before BOA for its consideration.

Item No. 87.10 Miscellaneous Cases (Six Proposals)

87.10(i) Request of M/s. Hirise Hospitality Pvt. Ltd. co-developer in APSEZ at Mundra for reduction in the area of leased land from 40468 to 25223 sq. meters as per the lease deed dated 06.11.2015

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M/s. Hirise Hospitality Pvt. Ltd. was granted co-developer status on 27.12.2011 for setting up a hotel having not more than 150 hotel rooms.

Further, the co-developer has submitted a proposal for reduction of leased land area from 40468 to 25223 sq. meters. A part of said land i.e. 15245 sq. meter to be surrendered back to the developer M/s. Adani Ports and SEZ Ltd., Mundra due to non-utilization of this land since last three years by the co-developer.

Recommendation by DC

DC, APSEZ has recommended the proposal.

The request is placed before BOA for its consideration.

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87.10(ii) Proposal of the Co-developer — M/s. Combine Realty Pvt. Ltd., Ahmedabad, for development of additional area of 2166 sq. mtrs. In the IT/ITES- SEZ at Village Ognaj, Talulka Dascroi, District Ahmedabad, developed by M/s. Calica Construction and Impex Pvt. Ltd.

The above mentioned SEZ was notified on 8" May, 2009 over an area of 10.43.10 hectares, in the name of M/s. Calica Construction & Impex Private Limited.

2009 M/s. Combine Realty Private Limited was granted co-developer status on 25" June, for providing infrastructure facilities in the SEZ over an area of 6187 sqm. No. The above case was put up before the 47" meeting of BOA held on 22.07.2011 {Item 47.4 (i)}, the Board deferred the proposal as the Developer and Co-developer Lease Agreement dated 28.04.2010 was for a period of 999 years, which was not permitted under the SEZ Rules. The co-developer vide their letter dated 19.12.2012, submitted deed of correction dated 10.09.2012 to the principal deeds wherein the term of lease is for a period of 99 years.

Thereafter the above case was again put up before the 57the meeting of the BOA held representativeon 15.03.2013 of{ItemGujarat No. 57.4Government (ii)}, the Boardexpressed deferredcertain thereservations request of theon co-developerthe proposal. asThe the Board directed that Govt. of Gujarat may communicate its comments to DoC, which will then decide the proposal on file. The Joint Industries Commissioner (Infra), Govt. of Gujarat vide letter dated 29.10.2018 while referring to the above minutes of meeting of the 57" Board of Approval, acknowledged receipt of amended lease agreement of 99 years as per SEZ rules instead of lease agreement of 999 years. No other observation / objection / reservation was raised with regard to the request of the co-developer for increase in the land area by 2166 sq. meters.

The Combine details of infrastructure development to be carried out by the co-developer M/s. Reality Pvt. Ltd., as per Ministry of Commerce & Industry, approval dated 25.06.2009 are as under: Total approved land area: 6187 sq. meters 2) | Total construction to be carried out in the approved | 260,000 sq.ft. land area as per agreement with the developer: (super built up area) under: The co-developer has sought approval for the additional land area for development as

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Additional land area requested: 2166 sq. meters 2) | Total construction to be carried out in the land area | 404,000 sq. ft. (approved+ additional area) as per agreement with (super built up area) the developer:

Calica The co-developer has entered into necessary lease agreement with the developer M/s. above. Construction & Impex Pvt. Ltd., for the land and construction of building as detailed

The request of co-developer for additional land area of 2166 sq. meters is re-submitted to the Board of Approval for consideration and approval.

The request is placed before BoA for its consideration.

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87.10(iii) Request of M/s. Altus Learning Pvt. Ltd. (formerly known as M/s. Calorx Education Company Pvt. Ltd. co-developer in APSEZ at Mundra for reduction in the area of leased land from 20356 sq. meter (2.02 Ha) to 12141 sq. meters (1.21 Ha) as per the lease deed dated 09.09.2010.

M/s. Altus Learning Pvt. Ltd. was granted co-developer status on 27.02.2009 for setting up a school up to 12" Standard as joint co-developers (M/s. Calorx Education Company Pvt. Ltd. and Calorx Education and research Foundation) in an area of 2.02 Ha of SEZ. land fromFurther,20356 thesq. co-developer hasmeter (2.02 Ha) submittedto 12141 sq/,a proposalmeter (1.21for reductionHa). A ofpart anof areasaid ofland leasedi.e. 8,215 sq. meter (0.82 Ha) to be surrendered back to the developer M/s. Adani Ports and SEZ Ltd., Mundra as scope of increase in the number of students in the school has remained limited and due to this infrastructure requirement reduced considerably.

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Recommendation by DC

DC, APSEZ has recommended the proposal. The request is placed before BOA for its consideration. product87.10(iv) SEZ developerAppeal of M/s.by Dahej ONGCSEZPetroat BharuchadditionsGujaratLimitedchallenging(OPaL), thea unitclarification in multiissued by this Deptt. following the approval of 83"! meeting of the BoA. M/s. OPaL was granted LoA on 17.10.2007 for setting up of unit in Dahej SEZ to manufacture 1) High Density Polyethylene 2) Linear Low Density Polethylene 3) PolyPropylene 4) Styrene Butadiene Rubber 5) Styrene 6) Hydrogenated Pyrolysis Gasoline 7) Carbon Back Feed Stock for export. The request of the developer seeking permission for laying of feed/raw material (Naptha) pipeline from Hazira ONGC (DTA) to the OPaL SEZ Unit was place in the 83" meeting of the BoA held on 19" June, 2018 (Flag ‘X’) and the Board, after deliberation, decided to approve the proposal. Subsequently , DC, Dahej SEZ vide their letter dated 12.10.2018 (Flag ‘Y’) stated that the above proposal was sent with understanding that authorized operation of pipeline would mean for inside the SEZ premises and no exemptions of taxes and duties had been mentioned in this proposal. DC, Dahej requested DoC for a clarification in this regard. Accordingly, a clarification was issued by this Deptt. vide letter dated 6" November, 2018 clarifying that the approval for laying of feed/raw material (Naptha) pipeline is subject to the condition that the unit will not avail any duty benefits on laying the said pipelines and that DC, Dahej SEZ would ensure proper accountal of quantum of goods supplied to and received from DTA.

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Now, the developer vide letter dated 6'" December, 2018 has represented against the above clarification dated 06.11.2018 and filed an appeal in Form—J.

Legal position:-

Sub-section (4) of section 16 of the SEZ Act, 2005 stipulates that “Any person aggrieved by an order of the Approval Committee made under sub-section (/), may prefer an appeal to the Board within such time as may be prescribed.”

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Further Rule 55 of the SEZ Rules, 2006 stipulates that “Any person aggrieved by an . order passed by the Approval Committee under section 15 or against cancellation of Letter of Approval under section 16, may prefer an appeal to the Board in the Form J.”

There is no provision for filing an Appeal against the decision of the BoA in SEZ Act, 2005 and SEZ Rules, 2006. The matter is placed before the BoA for its information.

87.10(v) Proposal regarding amendment of policy Guidelines of Department of Commerce for Power Generation, Transmission and Distribution in SEZ. dated 16.02.2016. Board The issue of grant of approval to power SEZs was discussed in the 8" meeting of the of Approval (BoA) held on 27.10.2006. After detailed examination of the issue in consultation with Ministry ofPower, Department ofRevenue and Department of Legal A “Power ffairs, guidelines” were issued by Department of Commerce on 27.02.2009. The power guidelines while allowing setting up of power plants in SEZs subject to conditions, inter alia, also allowed setting up of stand-alone power plants in SEZs in the processing area of an SEZ as a Unit in which there would be no other units. Such power plants were also permitted to supply electricity to entities in the non-processing area (NPA)of same SEZ/facilities in the nonprocessing area of other SEZs, SEZ units in other SEZs as well as Domestic TariffArea (DTA). The electricity sold to entities in NPA of the SEZ and in DTA would attract duty at the rates notified as Customs tariff by the DoR. Further, such power plant units were required to be Net ForeignThe Exchange “Power positiveGuidelines” n termsdated ofRule27.02.2009 53 of thewere SEZ reviewed ofthe SEZand Rules,subsequently, 2006. amended on 21.03.2012, 06.04.2018 and 16.02.2016. The latest amendment dated 16.02.2016, inter alia, stipulated that, “Henceforth, no single stand along power plant will be permitted to be set up in an SEZ in which there would be no other units.” It is pertinent to note that this provision was a departure from the earlier guidelines dated 27.02.2009 which permitted stand-alone power plants in SEZs. Thereafter, the Ministry of Power issued Guidelines on Cross Border Trade of Electricity dated 05.12.2016 which, inter alia, provided that Indian generating stations transmissionsupplying electricity system for exclusively connecting to neighboring to neighboring country countries may transmission system.be allowed to buildSubsequently, independent this office has also received an application (from M/s. Adani Power Ltd. (APL) for setting up a stand-alone power plant as an SEZ in the state of Jharkhand for export of the entire power produced to Bangladesh through a dedicated transmission line. However, the extant Power Guidelines, as amended on 16.02.2016 do not allow setting up of such stand-alone power plants in an SEZ which could export power as provided under Ministry of Power Guidelines on Cross Border Trade of Electricity dated 05.12.2016. It is also pertinent that Ministry of Power issued the Guidelines on Cross Border Trade of Electricity on 05.12.2016 i.e. after the DoC Power guidelines dated 16.02.2016 and therefore, a provision for exclusive export of electricity from SEZs could not have been envisaged at that time. plants DoC proposes to amend the extant policy to enable setting up of stand-alone power Trade in a SEZ which could export power as provided under the Guidelines on Cross Border of Electricity dated 05.12.2016 issued by the Ministry of Power. The proposal suggest, that sub-para (ii) of DoC guidelines for Power Generation, Transmission and Distribution in SEZ dated 16.02.2016 may be replaced by the following provision:-

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“Henceforth, no stand-alone power plant will be permitted in an SEZ in which there are no other units, except that a stand-alone power plant exclusively meant

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for export will be permitted, which shall be operated as a unit subject to all obligations and benefits available to SEZ Units.”

The proposed amendment in the guidelines will be an enabler to allow power plant for export purposes as envisaged in the new Guidelines issued by the Ministry of Power; Further, there will be no option for selling any surplus power in the DTA as the entire power will have to be exported abroad or consumed within SEZ to be treated as export in terms of Section 2(m)(iii) of the SEZ Act, 2005. Any intent of setting up of power plants to primarily cater to DTA would be curbed. Further, as the power generate is required to be entirely exported, the objective of the SEZ Act — i.e. promotion of export gets fulfilled.

The present proposal for policy amendment has been deliberated with the various stakeholders viz. — Ministry of Power, Ministry of External Affairs, Department of Revenue as well as the State Government of Jharkhand. The Department of Revenue has opined that the issued is purely a policy matter; DoC may take appropriate action and that Department of Revenue is only concerned with the policy of charging duty when power generated in an SEZ is supplied to DTA. The Ministry of Power, vide its O.M. dated 30.11.2018, has stated that it has already sent its comments on the issue vide O.M. dated 09.11.2017 and 26.12.2017 which are as under:-

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Comments vide letter dated 09.11.2017

As per the guidelines on Cross Border Trade of Electricity, Indian generating stations supplying electricity exclusive to neighboring countries may be allowed to build independent transmission system for connecting to the neighboring country transmission system. However, there are no facility/benefit under the guidelines for power projects/transmission systems being created exclusively for export of power to the neighboring countries.

Comments vide OM dated 26.12.2017

Setting up of a power plant is a de-licensed activity and is decided by a developer after obtaining necessary clearances and compliance with the technical standards relating to connectivity with the grid referred to in clause (b) of Section 73 of the Electricity Act, 2003. The transmission lines are operated in accordance with regulations/standards specified by the Central Electricity Authority, the Central Electricity Regulatory Commission and the State Electricity Regulatory Commissions.

There are no facilities/benefits available for power projects/transmission system other than meant for export of power, as requested for.

The Ministry of External Affairs has also supported the setting up of power plants to export power to Bangladesh which was envisaged under the MoU signed between India and Bangladesh.

In view of the foregoing, the proposed policy change through an amendment in the power guidelines dated 16.02.2016 is submitted for consideration of the BoA for appropriate recommendation. 87.10(vi) Request for No Objection for setting up of Disaster Recovery (DR) and Business Continuity Plan (BCP) Centre in Infosys Limited SEZ, located at Kumblapadavu, Kurnad Post, Pajeeru Village, Bantwal Taluk 574153, Dakshina Kannada District, Karnataka reg.

M/s Infosys Ltd SEZ (developer), has requested for ‘No Objection’ for setting up of a Disaster Recovery (DR) and Business Continuity Plan (BCP) Centre in their SEZ, for relocation of operation, data & employees of Infosys Limited, located in other locations, in case of a disaster to continue their business operations. The developer has identified 3 Floor of Building No. 9, in the Zone for the said DR & BCP Centre with a seating capacity of 193. A list of 24 identified SEZ Units located at various places in India.

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:

As per the guidelines issued by Ministry of Commerce & Industry’s letter No. D.12/25/2012-SEZ dated 22.03.2013, the DR & BCP Plan are allowed to units to units of SEZs/STPI/EOU etc. Here the SEZ Developer (Infosys Limited, Mangalore) is requesting to develop a permanent DR & BCP Centre in their SEZ for their units located at various SEZs and would amount to an authorised operation of the Developer.

DC, CSEZ has stated that taking into account the above aspects, it is suggested that a relaxation may be given so as to make use of the Central Facility of DR/BCP centre provided by the Developer to other SEZ Units of the same corporate entity located a various place. Hence, the proposal has been recommended for consideration of the Board of Approval for SEZs under Department of Commerce.

DC’s Recommendation

DC, CSEZ has recommended the proposal for placing it before the BoA for consideration.

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