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Supplementary Agenda II for the 106th meeting of the BoA for SEZs to be held on 07.10.2021

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No. K-43014(22)/13/2021-SEZGovernment of India Ministry of Commerce and Industry Department of Commerce (SEZ Section)

Udyog Bhawan, New Delhi Dated the 6" October, 2021

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OFFICE MEMORANDUM

Subject: 106 Meeting of the Board of Approval (BoA) for Special Economic Zones (SEZs) scheduled to be held on 7" October, 2021 at 3.00 P.M in Room No. 47 - forwarding of Supplementary Agenda II thereof — Reg. and In continuation to this Department’s O.M. of even numbers dated 27% September, 2021 4" October, 2021 on the above mentioned subject, the undersigned is directed to enclose herewith the Supplementary Agenda II for the 106" meeting of the BoA for SEZs scheduled to be held on 7 October, 2021 at 3:00 P.M. in Room No. 47, Udyog Bhawan, New Delhi for information and necessary action. Soft copy of the Supplementary agenda II has also been hosted on the website: www.sezindia.gov.in. Be The local addressees may kindly make it convenient to attend the meeting as per above venue and time. Other participants may attend the meeting through Conferencin web link for the same is being shared by this Department. c | G\t (Sumit Kumar Sachan) Under Secretary to the Government of India Tel: 2306 2496 To Email: sumit.sachan@nic.in

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).

  3. Joint Secretary, Ministry of Finance, Department of Financial Services, Banking 4, Division, Jeevan Deep Building, New Delhi (Fax: 23344462/23366797). Shri Anil Agarwal, Additional Secretary, Department of Promotion of Industry and Internal Trade (DPIIT), Udyog Bhawan, New Delhi.

  4. Joint Secretary, Ministry of Shipping, Transport Bhawan, New Delhi. 6. 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).

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

  2. Joint Secretary (IS-I), Ministry of Home Affairs, North Block, New Delhi 13. (Fax: 23092569) Joint Secretary (C&W), Ministry of Defence, Fax: 23015444, South Block, New Delhi.

(Fax: 24363101)

  1. Joint Secretary (IS-I), Ministry of Home Affairs, North Block, New Delhi 13. (Fax: 23092569) Joint Secretary (C&W), Ministry of Defence, Fax: 23015444, South Block, New Delhi.

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

  3. Joint Secretary & Legislative Counsel, Legislative Department, M/o Law & Justice, 16. A-Wing, Shastri Bhavan, New Delhi. (Tel: 23387095). LawDepartment & Justice,of LegalNew Delhi.Affairs (Shri Hemant Kumar, Assistant Legal Adviser), M/o

  4. Secretary, Department of Chemicals & Petrochemicals, Shastri Bhawan, New Delhi 18. Joint Secretary, Ministry of Overseas Indian Affairs, Akbar Bhawan, Chanakyapuri, 19. New Delhi. (Fax: 24674140) Chief Planner, Department of Urban Affairs, Town Country Planning Organisation,

  5. Vikas Bhavan (E-Block), I.P. Estate, New Delhi. (Fax: 23073678/23379197) Director General, Director General of Foreign Trade, Department of Commerce, Udyog Bhavan, New Delhi.

  6. 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

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

  2. Development Commissioner, Kandla Special Economic Zone, Gandhidham.

  3. Development Commissioner, Falta Special Economic Zone, Kolkata.

ent Commissioner, Noida Special Economic Zone, Noida.

  1. Development Commissioner, Kandla Special Economic Zone, Gandhidham.

  2. Development Commissioner, Falta Special Economic Zone, Kolkata.

  3. Development Commissioner, SEEPZ Special Economic Zone, Mumbai.

  4. Development Commissioner, Madras Special Economic Zone, Chennai 28. Development Commissioner, Visakhapatnam Special Economic Zone, Visakhapatnam

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

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

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

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

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

34, Development Commissioner, Sterling Special Economic Zone, Sandesara Estate, 35. Atladra Padra Road, Vadodara - 390012 Development Commissioner, Andhra Pradesh Special Economic Zone, Udyog

  1. Bhawan, 9" Floor, Siripuram, Visakhapatnam — 3 Development Commissioner, Reliance Jamnagar Special Economic Zone, Jamnagar, Gujarat

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

Floor, Siripuram, Visakhapatnam — 3 Development Commissioner, Reliance Jamnagar Special Economic Zone, Jamnagar, Gujarat

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

  2. Development Commissioner, Mihan Special Economic Zone, Nagpur, Maharashtra 39. Development Commissioner, Sricity Special Economic Zone, Andhra Pradesh. 40. Development Commissioner, Mangalore Special Economic Zone, Mangalore. 41.Government of Andhra Pradesh, Principal Secretary and CIP, Industries and Commerce Department, A.P. Secretariat, Hyderabad — 500022. (Fax: 040-23452895).

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

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  1. Government of Karnataka, Principal Secretary, Commerce and Industry Department, 44. Vikas Saudha, Bangalore — 560001. (Fax: 080-22259870) Government of Maharashtra, Principal Secretary (Industries), Energy and Labour

  2. Department,Government Mumbai —of Gujarat,400Principal 032. Secretary, Industries and Mines Department Sardar 46. Patel Bhawan, Block No. 5, 3rd Floor, Gandhinagar— 382010 (Fax: 079-23250844), Government of West Bengal, Principal Secretary, (Commerce and Industry), IP Branch (4 Floor), SEZ Section, 4, Abanindranath Tagore Sarani (Camac Street) Kolkata — 700 016

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  1. Government of Tamil Nadu, Principal Secretary (Industries), Fort St. George, Chennai — 600009 (Fax: 044-25370822).

  2. Government of Kerala, Principal Secretary (Industries), Government Secretariat, Trivandrum — 695001 (Fax: 0471-2333017).

y (Industries), Fort St. George, Chennai — 600009 (Fax: 044-25370822).

  1. Government of Kerala, Principal Secretary (Industries), Government Secretariat, 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, Bhagwan Das Road, Jaipur — 302005 (0141-2227788).

  2. 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. Puducherry.Governmentof Puducherry, Secretary, Department of Industries, Chief Secretariat, 54. Government of Odisha, Principal Secretary (Industries), Odisha Secretariat, Bhubaneshwar — 751001 (Fax: 0671-536819/2406299).

  3. Government of Madhya Pradesh, Chief Secretary, (Commerce and Industry), Vallabh Bhavan, Bhopal (Fax: 0755-2559974)

  4. Government of Uttarakhand, Principal Secretary, (Industries), No. 4, Subhash Road, Secretariat, Dehradun, Uttarakhand

  5. Government of Jharkhand (Secretary), Department of Industries Nepal House, Doranda, Ranchi — 834002.

Principal Secretary, (Industries), No. 4, Subhash Road, Secretariat, Dehradun, Uttarakhand

  1. Government of Jharkhand (Secretary), Department of Industries Nepal House, Doranda, Ranchi — 834002.

  2. Union Territory of Daman and Diu and Dadra Nagar Haveli, Secretary (Industries), 59. Department of Industries, Secretariat, Moti Daman — 396220 (Fax: 0260-2230775). Government of Nagaland, Principal Secretary, Department of Industries and Commerce), Kohima, Nagaland.

  3. Government of Chattishgarh, Commissioner-cum-Secretary Industries, Directorate of Industries, LIC Building Campus, 2™4 Floor, Pandri, Raipur, Chhattisgarh (Fax: 0771-2583651).

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Copy to: PPS to CS/ PPS to AS (SK) / PPS to JS(AK)/ PPS to Dir (SNS).

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Supplementary Agenda II for the 106% meeting of the Board of Approval to be held on

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7th October, 2021 at 3:00 P.M.

Item No.106.16 Request for co-developer status (one proposal)

106.16(i) Request of M/s. SMEDC Services Private Limited for co-developer status in the Milestone Buildcon Private Limited SEZ for conversion of bare shell buildings into warm shell building and to lease the built-up space in the SEZ.

The above mentioned SEZ was notified on 27.09.2010 over an area 10.11 hectare. The Zone became operational on 20.12.2016.

M/s. SMEDC Services Private Limited has submitted a proposal for becoming a codeveloper in the aforesaid SEZ for conversion of bare shell buildings into warm shell building and to lease the built-up space in the SEZ. They have entered into a Co-Developer agreement with the Developer for conversion of bare shell buildings into warm shell building in an area of 2606.77 Sq. mtrs (28059 Sq. feet) and to lease the built-up space in the above said area of the SEZ.

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Co-developer agreement dated 21% July, 2021 entered into with the developer has been provided. The company has proposed an investment of Rs.6.50 crore as Co-developer in the SEZ:

Recommendation by DC:

DC, CSEZ has recommended the proposal for consideration of BOA.

The proposal is placed before BoA for consideration.

106.17 Miscellaneous cases (six proposals) 106.17(i) Application for approval of Authorized Operations request by CoDeveloper M/s. ATS Savvy Developers LLP in GIFT Multi Services SEZ. The Co-Developer, M/s. ATS Savvy Developers LLP in GIFT-Multi-services-SEZ, Gandhinagar vide their application in Form-C-7, dated 14.09.2021 has sought approval for modification of Authorized Operations i.e. use of ‘Multi-level car parking’ in the Processing Area in the SEZ, for use of 2220 square meters of built-up area for use by approved SEZ units in the category of IFSC, FTWZ, IT/ITES and other approved/allowed by the Competent . Authority for categories like units for Bullion project, etc. The said Co-Developer M/s. ATS Savvy Developers LLP has already been issued the following Approvals by the Department of Commerce for authorized operation viz. construction, development, maintenance and operation of SEZ building for units to undertake export of services in the processing area of SEZ, over an area of 4,16,370 sq. ft. BUA in Block 15 Zone within GIFT SEZ processing area, and Multi-level car parking over an area of 2888 square meters:-

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S1.No. [BOA Approval Letter No.

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----- Start of picture text -----<br> 5<br>*This approval is for multi-level car parking.<br>----- End of picture text -----<br>

Now, the co-developer M/s. ATS Savvy Developers LLP, vide their application in Form-C-7, dated 14.09.2021, has sought approval for use of 2220 square meters of area out of the approved total area of 2888 square meters for the multi-level car parking for allotment to approved SEZ units in the category of IFSC, FTWZ, IT/ITES, in order to optimize the use of built-up area. On approval granted for the multi-level car parking, the co-developer M/s. ATS Savvy Developers LLP has built building consisting of Ground plus five floors and terrace for the same on the land area of 2888 square meters. The Developer, M/s. GIFT SEZ Limited, vide their letter dated 13.09.2021 has amended the terms of use of allotted land.

Recommendation by DC, GIFT SEZ:-

In view of fast paced development of GIFT-multi-services-SEZ, Gandhinagar, with the upcoming Bullion Exchange, other services units in the field of aviation leasing, and other related ancillary units, the demand for built-up area for such units have increased. The case is recommended for modification of use of multi-level car parking for use by approved SEZ units in the category of IFSC, FTWZ, IT/ITES and other approved/allowed by the Competent Authority for categories like units for Bullion project, etc. This is hereby recommended subject to adherence/compliance of any other mandatory/statutory norms of all concerned Regulatory Authority (s), local area norms, building use approval/permission.

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The proposal is placed before BoA for consideration.

106.17(ii) Appeal filed by M/s HCL Technologies Ltd. against the decision of the UAC, NSEZ vide order dated 07.01.2020 rejecting the request of the unit for inclusion of Group Health and Insurance Services as Authorized Operations of the unit and its coverage under default service namely “General Insurance Business Service”.

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M/s HCL Technologies Ltd., a unit in Noida Special Economic Zone proposed(pg.63/ C) for inclusion of 'Group Health and Medical Insurance Services' as authorized operations of the unit and its coverage under default service namely, "General Insurance Business Services".

d(pg.63/ C) for inclusion of 'Group Health and Medical Insurance Services' as authorized operations of the unit and its coverage under default service namely, "General Insurance Business Services".

The proposal of the unit was placed before the UAC in its meeting held on 06.12.2019. The Committee observed that exemption available to the SEZ units is only on input services ' related to authorized operations of the unit. The Group Insurance of employees related to individuals and not related to authorized operations of the SEZ unit. The actual beneficiary of said service is an individual. The Committee also observed that income earned by a unit on account of export is exempted from payment of Income Tax, whereas individual employees are given the benefit of Income Tax exemption. The Committee clarified that the ‘Group Health and Medical Insurance’ of its employees is not related to the authorized operations of the SEZ unit, hence not covered under default authorized services namely “General Insurance Business Services”.

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es is not related to the authorized operations of the SEZ unit, hence not covered under default authorized services namely “General Insurance Business Services”.

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the SEZAggrieved Rules, 2006 onwith the 24.01.2020decision of for the considerationUAC, the unit byfiled the Boardan appeal of inApproval.terms of Rule The appeal55 of was placed before the BoA in its 95th meeting held on 14.02.2020. The Board heard the appellant and after deliberations, decided to defer the matter with the directions that the proposal may first be examined on file and views of DoR may be obtained. The consolidated proposal may then be placed before the BoA for deliberations. DoC vide OM dated 06.03.2020, had requested DGEP for their comments/views in this matter followed by several reminders. DGEP was requested for an early reply on 17.03.2021 so that the pending appeal of M/s HCL may be disposed of suitably. A DO dated 20.07.2021 from the level of the Joint Secretary was also sent to DGEP with the request to expedite their response.

  • Meanwhile, the unit had moved the Hon’ble High Court of Delhi seeking the

  • following reliefs : a. To issue the writ of mandamus or any other appropriate writ or order or direction in the nature thereof, directing Respondent no. 2 (BoA) to decide the appeal filed by the petitioner against the order passed by the UAC, NSEZ expeditiously in a time bound manner.

der or direction in the nature thereof, directing Respondent no. 2 (BoA) to decide the appeal filed by the petitioner against the order passed by the UAC, NSEZ expeditiously in a time bound manner.

  • b. To issue the writ of mandamus or any other appropriate wit or order or direction in the nature thereof, to the Respondent nos. 1, 3, 4, 5 & 6 to provide their inputs at the earliest to the Respondent no. 2, in respect to petitioner’s pending appeal against the order passed by the UAC, NSEZ.

  • c. To issue such further orders and other reliefs as the nature and circumstances of the case may require.

The case came up for hearing on 27.09.2021 and the Writ Petition has been disposed of with the directions to Respondent Nos.4 & 5 to furnish the necessary information as requested by Respondent no.2 within 10 days from the date of order, who will decide the petitioner’s appeal within a period of two weeks of receiving the response from the respondent nos. 4 & 5.

Meanwhile, it is observed that DGEP has vide their OM dated 26.08.2021 informed that the matter was examined. The observations of DGEP are summarized below:

  • i. Post GST, supplies of goods or services or both by a DTA supplier to SEZ unit are considered zero-rated supplies under Section 16 of IGST Act and such supplies can be made either without payment of integrated

  • ; tax under LUT and DTA supplier claiming refund of unutilized ITC or on payment of integrated tax and claiming refund of such tax paid by the DTA supplier on goods/services supplied.

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rated

  • ; tax under LUT and DTA supplier claiming refund of unutilized ITC or on payment of integrated tax and claiming refund of such tax paid by the DTA supplier on goods/services supplied.

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  • ii. The above exemptions from various duties and taxes (Customs, Central Excise Duty and service tax in the pre-GST regime and integrated tax in post GST regime) on such procurement of goods and services from DTA are allowed to SEZ units for carrying out authorized operations only.

  • iii.In the pre-GST regime, notification no.12/2013-Service Tax dated

. 01.07.2013(pg.198/C)exemption from paymentprovided of servicethe tax forprocedure. supply offor specified servicesthe ab-initio by a DTA supplier to a SEZ unit or a SEZ developer to be exclusively used for authorised operations subject to conditions and procedure. As per this notification (Para 3(1)), the SEZ unit or the developer shall get an approval by the Approval Committee of the list of the services as required for the authorized operations on which the SEZ unit or developer wishes to claim exemption from service tax. As per latest instruction dated 02.01.2018 by DoC, 66 such services were approved by the BoA in the post GST regime as default authorised services for use by SEZ units while carrying out authorised operations.

t instruction dated 02.01.2018 by DoC, 66 such services were approved by the BoA in the post GST regime as default authorised services for use by SEZ units while carrying out authorised operations.

  • iv. The term authorised service has not been used in SEZ law or Service. Tax Law regime. It appears that the list of such services has been issued in pursuance of Para 3(1) of Notification no.12/2013-ST dated 01.07.2013 (now defunct). There appears no requirement by UAC under SEZ law, as far as procuring services from DTA is concerned, to approve such services in advance for use in the authorised operation. Therefore, the issuance/continuation of such list, post-GST, has no validity.

  • v. The question that whether any service is required by an SEZ unit for carrying out authorised operations need to be decided by the UAC ona case to case basis on merit. The UAC is headed by the DC with representation by customs officers having jurisdiction over the concerned SEZ unit, jurisdictional Customs and GST officers and other Central and State Government officers.

is headed by the DC with representation by customs officers having jurisdiction over the concerned SEZ unit, jurisdictional Customs and GST officers and other Central and State Government officers.

  • vi.HCL has filed the present appeal under Rule 55 of SEZ Rules, which mandate filing of appeal by any person aggrieved by and order passed by the Approval Committee under Section 15 or against cancellation of Letter of Approval under Section 16 of the SEZ Act. As per Section 15(3)of the SEZ Act, the Approval committee may either approve the proposal with or without modification or reject the proposal for setting upauthorisedof a unit operationsas proposedin aby SEZ.a person Sectionto set16 up of thea unit SEZfor Actcarrying says thaton thethe Approval Committee, if it has a reason to believe that the unit has persistently contravened the terms and conditions of the LoA, may cancel such LoA. Thus, neither Section 15 nor Section 16 deals with any default authorised services list or input services intended to be used in authorised operations. Therefore, the appeal filed by HCL before BoA seems to be not maintainable ab-initio.

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  • vii.BoA may decide the issue on the basis of facts of the case as to whether any service is to be included in the list of default authorised service list. As far as zero rated benefit to any service supplied to a SEZ unit is concerned, the same shall be determined under the provisions of Section 16(1)&(2) of the IGST Act subject to provisions of Section 17(5) of the

ated benefit to any service supplied to a SEZ unit is concerned, the same shall be determined under the provisions of Section 16(1)&(2) of the IGST Act subject to provisions of Section 17(5) of the

  • CGST Act read with provision relating to authorised operations by SEZ units under the SEZ law.

  • Vili.Section 16(1) of the IGST Act defines zero-rated supply as supply of goods or services or both to a SEZ developer/unit for authorized operations. Section 16(2), however, says that credit of input tax may be availed for making zero rated supplies subject to provision of Section 17(5) of CGST Act. Thus, a DTA unit can only avail ITC while making zero-rated supply if not hit buy Section 17(5) of CGST Act. As per the said Section, the ITC in respect of services of life insurance and health insurance are not available except that when a registered person makes inward and outward taxable supply of the same category.

  • ix.In the case in hand, M/s HCL is an IT/ITES unit and not a life insurance or health insurance agency/company, hence the ITC on GST paid by HCL on life or health insurance services received from DTA supplier shall be hit by the provisions of Section 17(5) of the CGST Act and therefore, HCL will not be able to avail ITC of such payment made while making further outward supply of IT or ITES services. This is besides the merit of the issue as decided by the UAC.

  • x. In view of the above, the Board of Approval has to decide about the competency and merit of the appeal filed by HCL before them.

This is besides the merit of the issue as decided by the UAC.

  • x. In view of the above, the Board of Approval has to decide about the competency and merit of the appeal filed by HCL before them.

While DoC may consider and further deliberate upon the suggestion of DGEP as regards validity of continuation of list of default authorised services, post GST, it is evident that the Department of Revenue is of the opinion that the appeal not only fails to sustain on technical grounds but also devoid of merits.

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The appeal is placed before the BoA for consideration accordingly.

|106.17(iii) Request of M/s. Phoenix Ventures Private Limited, an IT/ITES SEZ at Sy.<br>No. 35 P& 36, Gachibowli Village, Serilingampally Mandal, Ranga Reddy District,<br>Telangana for inclusion of an additional area of 0.71 Ha (more than 10%) to their|
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|notifiedareaof2.89Ha.|
|As per DoC’s O.M. dated 14.07.2016 the documents required for additional area|
|notification and the status thereofare as below: -|
|7 ala<br>No.<br>|<br>overnment<br>or<br>its<br>authorized<br>[that as per the legal possession certificate issued by the|
|agency stating that the developer<br>Joint Sub-Registrar, Ranga Reddy District, Telangana, the|
|has irrevocable rights to the said developer is in possession with absolute rights over the land|
|area as SEZ.<br>as landowners including irrevocable rights.|
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|recommendation|

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with absolute rights over the land| |area as SEZ.<br>as landowners including irrevocable rights.| |"| |recommendation|




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|<br>**----- End of picture text -----**<br>


||format<br>.|onducted<br>on<br>Officer, M/s. <br>ollector &|onducted<br>on<br>Officer, M/s. <br>ollector &|17.09.2021<br>by DDC,<br> Phoenix Ventures Private <br>Tahsildar,<br>Serilingampally|17.09.2021<br>by DDC,<br> Phoenix Ventures Private <br>Tahsildar,<br>Serilingampally|VSEZ;<br>Specified<br> Limited; Deputy<br>Mandal, Ranga|VSEZ;<br>Specified<br> Limited; Deputy<br>Mandal, Ranga|
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|||Reddy District and representative of the Developer. The<br>area proposed to be included is Contiguous, Vacant and||||||
|||having no|public thoroughfare conforming to the||||SEZ Act|
|||andRules.||||||
|.|ountersigned byDC|||||||
||Revenue Authorities|||||||
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||from Revenue Authorities|||||||
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||learly specified survey numbers)|lYes, provided||||||
||o be notified duly certified by|||||||
||evenue authorities|||||||
||Survey numbers and duly certified|||||||
||byrevenue authorities|||||||
||deed|||||||



Recommendations of DC, VSEZ:- DC, VSEZ has recommended the above proposal for placing the same before the meeting of the BoA.

d duly certified|||||||
||byrevenue authorities|||||||
||deed|||||||



Recommendations of DC, VSEZ:- DC, VSEZ has recommended the above proposal for placing the same before the meeting of the BoA. 

106.17(iv) Request of M/s. Phoenix Infraspace India Pvt. Ltd, Co-Developer in M/s. Phoenix Ventures Pvt. Ltd., ITITES SEZ at Sy. No. 35 (P) & 36, Gachibowli Village, Serilingampally Mandel, Ranga Reddy District, Telangana for amendment in the CoDeveloper Agreement. 

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M/s. Phoenix Infraspace India Pvt. Ltd was granted Formal Approval on 28.6.2018 for Co-Developer status in an area of 0.55 Hectares (1.36 Acres) for development and construction of building and to undertake the operations and maintenance of the building in M/s. Phoenix Ventures Pvt. Ltd., SEZ for IT/ITES at Sy. No. 35 (P) & 36, Gachibowli Village, Serilingampally Mandel, Telangana in area of 2.89 Hectares (7.13 Acres). 

The Co-Developer has stated that they had executed Co- Developer Agreement dated 29.5.2018 with the Developer for development of an IT/ITES building as described therein , along with lease of the land. They have stated that the Developer owns another land of 0.71 Ha which is contiguous to the total SEZ land of 2.89 Hectares. The Developer is planning to include this land of 0.71 Ha into the notified SEZ land of 2.89 Ha. The SEZ land together with the proposed additional land of 0.71 Ha will be 3.60 Ha. The Developer has submitted an application in the prescribed format for extension of notified SEZ land.

of 2.89 Ha. The SEZ land together with the proposed additional land of 0.71 Ha will be 3.60 Ha. The Developer has submitted an application in the prescribed format for extension of notified SEZ land. The same was forwarded to the Collector, Ranga Reddy District, Telangana for nominating an officer not below the rank of Tahsildar/ Mandal Revenue Officer for inspection of the Additional Area pertaining to M/s. Phoenix Ventures Pvt. Ltd. Further, it was also mentioned that the Officer concerned has to certify that M/s. Phoenix Ventures Pvt. Ltd., Developer has irrevocable rights over the additional area of 0.71 Ha to be notified to the existing SEZ. 

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The Developer has proposed to allot to them an identified extent of 0.58 Ha out of the proposed extended SEZ land of 3.60 Ha instead of existing 0.55 Ha. 

The Co-Developer has further stated that based on the above, subject to notification of the proposed extended SEZ land, they have amended certain terms of the Co-Developer Agreement vide the Amendment to Co-Developer Agreement dated 7.9.2021, inter-alia, to include the following: 

- a. The Co-Developer will have leasehold interest in the identified portion of the Proposed Extended SEZ land to an extent of 1.44 Acres (0.58 Ha) 

- b. The term of the lease in favour of the Co-Developer will be 99 years with further extensions at the option of the Co-Developer. The Developer and Co-Developer will execute and register a lease deed in this regard.

lease in favour of the Co-Developer will be 99 years with further extensions at the option of the Co-Developer. The Developer and Co-Developer will execute and register a lease deed in this regard. 

The Co-Developer has submitted the Amendment to Co-Developer Agreement and the draft lease proposed to be executed for kind perusal. 

The Co-Developer has stated that for the convenience of project planning and development, they have sought the prior approval of BoA for the Amendment to CoDeveloper Agreement. The BoA may give prior approval with a condition that it shall be subject to notification of the additional land area of 0.71 Ha which is in process as proposed by the Developer, as per the SEZ Act and Rules. 

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## Recommendation by DC, VSEZ: 

The request of the Co-Developer for amendment in the Co- Developer Agreement may be considered with a condition that it shall be subject to notification of the additional land area of 0.71 Ha as proposed by the Developer, as per the SEZ Act and Rules. 

106.17(v) Request of Kandla Special Economic Zone Industries Association for renewal of LoAs of Plastic recycling units for 5 years. 

- Recently after due consultation with all concerned stakeholders, a policy regulating 

- plastic and used/worn cloth units was issued on 27.05.2021 with the approval of the Hon’ble CIM and accordingly the request for renewal of LOA of the plastic recycling units were consideredthe LoAs ofby thethe units for BoA in aits period104th ofmeeting 18 months fromheld on 28.05.2021. the date ofThe notificationBoard decidedof MoEF&CCto extend i.e. 27.01.2021 laying down conditions therefor. The existing policy i-r.o. plastic recycling units stipulates the following : i. Existing units may be granted extension / renewal of LoA for'a period of 18 months as

ying down conditions therefor. The existing policy i-r.o. plastic recycling units stipulates the following : i. Existing units may be granted extension / renewal of LoA for'a period of 18 months as 

- ’ per notification dated 27.01.2021 issued by MoEF&CC as well as the conditions as laid down by the MoEF&CC . The above condition that the present permission to import the raw material is only for 18 months will be declared upfront so that the existing units may seek extension / renewal factoring in this condition into their business proposal . Such renewal shall also be subject to the condition that the units shall comply with obligations under other legislations as well as compliance with payment of penalty, if any imposed by competent authority under any statute. 

- ii. DoC may propose suitable amendment in SEZ Rules to provide for setting up of new units engaged in recycling of plastic as SEZ units. 

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- iii. DGFT may propose suitable amendment in FTP to provide for setting up of new units iv. Besidesengaged inthe recycling NFE obligations, plastic asthe EOUsunits. shall be required to comply with to the extent — a. 35 % of the exports in terms of annual turnover and 

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   - b. 50 % in terms of tonnage. 

- v. They shall be allowed to make clearance in DTA, other SEZ units as well as EoUs as long as they fulfil the NFE and other conditions. Clearance to other SEZ units / EOUs will not be counted towards mandatory minimum physical export obligations.

, other SEZ units as well as EoUs as long as they fulfil the NFE and other conditions. Clearance to other SEZ units / EOUs will not be counted towards mandatory minimum physical export obligations. 

Meanwhile, KASEZIA has represented stating that currently LoAs of plastic recycling units in SEZs have been renewed only for a period of 18 months and this short-term renewal is creating operational problems and they are not able to operate their units. Industry is suffering from short term renewals of LoAs since last two years and due to erratic and short renewals of LoAs, units in last 2 years have lost hundreds of crores in paying staff salaries, minimum power bills, bank interest, term loan liabilities and SEZ lease rents. 

KASEZIA stated that MoEF&CC permitted to import this raw material into the Special Economic Zones vide their Gazette Notification No. G.S.R 47 (E) dated 27.01.2021, wherein MoEF&CC clearly mentioned that they will review the export obligation after a period of 18 months (or later), however, they had not put any restriction on imports for the period beyond 18 months, however, DoC allowed our LoAs only for period of 18 moths only.

igation after a period of 18 months (or later), however, they had not put any restriction on imports for the period beyond 18 months, however, DoC allowed our LoAs only for period of 18 moths only. 

MoEF&CC was accordingly requested for their opinion on the submissions of KASZIA. Further, MoEF&CC has vide their letter dated 21.09.2021 clarified that as per the amended notification dated 27.01.2021, it is clear that import of 'post-industrial or preconsumer polyethylene wastes' and Polyrnethyl Methacrylate! by SEZ and EOU units would not be affected after 18 months from the date of notification. However, the percentage of export obligation may be decided after review/audit undertaken as mentioned in amended notification. 

Since as per clarification issued by MoEF&CC, only the export quantum will be reviewed after 18 months and not the eligibility of import. In view of this policy in respect of plastic recycling units needs to be revisited. Accordingly, the matter is placed before the Board of Approval for deliberation. 

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