Final Minutes of 4th BoA Meeting - 21st Septmber,2006

Minutes of the 4th meeting of the Board of Approvals held on 21st September, 2006 under the Chairmanship of Shri Gopal K. Pillai, Special Secretary, Department of Commerce to consider proposals for setting up of
Special Economic Zones.

A meeting of the Board of Approval was held on 21.09.2006 at 10.30 A.M. under the Chairmanship of Shri Gopal K. Pillai, Special Secretary, Department of Commerce to consider proposals for setting up of new Special Economic Zones.
A list of participants is enclosed. (Annexure I).

The Chairman welcomed the Members to the Board of Approval meeting.
Chairman informed the Board that in the recent past, issues have been raised regarding land acquisition for SEZs. He mentioned that in the last BoA meeting also a view was taken that the States may not go for large scale acquisition and the Developers should also create reasonably sized SEZs instead of very large sized SEZs. He commented that the acquisition of land for SEZs should result in better compensation for the farmers. The State Government representatives informed that every State has its own land acquisition policies and all aspects are considered while deciding to acquire land for a particular project. After detailed discussions, a consensus emerged that wherever lands are being acquired by the State Governments for SEZ purpose, preference should be given to waste and barren land. It was also agreed that even if acquisition of agricultural land becomes necessary for the purposes of meeting the minimum area requirements for the SEZ, single crop land should be acquired and the double crop land should not exceed 10% of the total area of the SEZ.

ITEM No. 1 Progress of notifications of SEZs

It was noted that 26 Notifications have been issued as on date. Chairman clarified that the list includes only the new SEZ notifications and amendment notifications as issued in case of Nokia SEZ were not included in the list.

The Chairman requested the State Government representatives to closely monitor the progress of SEZs and ensure that all such cases where formal approvals have been given should submit papers within 30 days for notifications. This would ensure that the SEZ is made operational at the earliest. The State government representatives informed that there are lot of internal procedures relating to land use, clearance from Urban Development Department, Environmental clearance, etc. which take time. It was suggested that formal approvals be granted only after the State Government is fully satisfied and then they can ensure that papers for notification are cleared within 60 days of grant of formal approvals. The Board agreed to the same.

Minutes of the 4th meeting of the SEZ Board of Approvals held on 21.09.06

ITEM No. 2 Guidelines for social infrastructure in the SEZs

The Board considered the draft Guidelines for Social infrastructure in the SEZs circulated in the meeting, which was drafted in consultation with CBDT and CBEC.
During the meeting, the Member (IT), CBDT pointed out that as per the provisions of Section 4(2) of the SEZ Act, 2005, the BoA can authorize only such operations which are authorized by the Central Government. The Law Ministry representative also agreed that list of authorized operations for the SEZ needs to be notified. They opined that out of these notified authorized operations only, the Board can approve the authorized operations to be carried out in a Zone. Accordingly, the list of operations was finalized in IT/ITES, Bio-tech and Gems & Jewellery; Sector specific and Multi-product SEZs. The same is placed at Annexure II. It was decided that a draft notification, in terms of powers exercised under Section 4(2) of the SEZ Act, 2005, will be prepared and notified under SEZ Act, 2005 after consulting Ministry of Finance.

The Board also had deliberations on the quantum of social infrastructure. Some members were of the view that the quantum should have a linkage to employment. The Members representing Department of Revenue argued that there cannot be any non SEZ usage of the infrastructure in the SEZ. It was informed that these issues have been discussed in the official level meeting between the two departments and that it was based on the said discussion that it had been decided to issue social infrastructure guidelines. The Board after discussions decided the quantum of certain identified infrastructural facilities in the non processing area of various category of SEZs. The details of the same are placed at Annexure III.

ITEM No. 3 Criteria for selection of applications for SEZs. The Board of Approvals also agreed on the following internal criteria to be followed by the Board for approval of SEZ Developers:

1. Minimum Investment or Net worth of the Promoter company & all Group companies & Flagship companies as follows:

a) Sector specific SEZs:

Minimum investment of Rs. 250 crores or net worth of Rs. 50 crores

b) Multi product SEZs:

Minimum investment of Rs. 1000 crores or net worth of Rs. 250 crores

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Proposals not meeting the above minimum investment or net worth criteria with enough justification for the same, to be considered on merits by the Board of Approvals.
3. These criteria would not apply to State Industrial Development Corporations etc.

ITEM No. 4 Approval for format of in-principle approvals.

The Board considered the draft in principle approval letter circulated with the agenda and the additional conditions added in the same. The suggestion to include a clause that the rehabilitation of displaced persons would be as per the RR Policy of the State Government was agreed to. It was decided to revise the draft approval letter incorporating this clause. As regards the validity of these in- principle approvals, it was decided to have a uniform initial validity of 12 months extendable by the BoA if proper justification and details of action taken for implementation is provided by the applicant. Member (CBDT) suggested that the profroma should be included in the SEZ Rules, 2006.

ITEM No. 5 Requests for change in name of the company

The issue was discussed in the BoA. A general consensus, confirmed by the Law Ministry representative emerged that in case of change of name, once the certificate of change of name is issued by the Competent Authority, the BoA has no function. The administrative department will have to just take note of the changed name. It was decided that such cases may be dealt with accordingly and BoA may be kept informed about such changes.

As regards the change of the developer company including change to an SPV, it was decided that the same should be placed before the BoA.

ITEM No. 6 Requests for change in area of SEZs

In regard to the proposals for change in area of the SEZs, the Law Ministry representative informed that as per law, so long as the area proposed is meeting the minimum area requirements as provided under Rule 5 of the SEZ Rules 2006, the same can be dealt with administratively and would not require BoA approval. The Member (CBDT) pointed out that power to allow expansion in a notified SEZ is with the BoA. It was informed that at times, the developer requests for changing the area (either increase or decrease) of the SEZ at the time of the notification.

In view of the discussion above, it was decided that the approval to various requests for changing the area of the SEZs may be approved on file, provided the proposal is for modification of the non-notified SEZs. It was further decided

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that once the proposal is notified, proposals for expansion/reduction in the area may be placed before the BoA.

ITEM No. 7 Proposals for ratification of approvals given prior to SEZ Rules and proposals for conversion of in-principle approvals to formal approvals

The proposals for ratification of approvals given prior to SEZ Rules and proposals for conversion of in-principle approvals to formal approvals were considered by the Board. A list of 13 proposals which were granted formal approvals is at Annexure IV. 7 proposals on which decision has been deferred is at AnnexureV.

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Annexure I List of Participants at the Fourth BoA meeting of the SEZ BoA held on 21.9.2006
S. No. Name, Designation and Organisation 1.
Shri. A Bhargava, Member, CBDT, North Block, New Delhi 110 001

Shri Devender Dutt,
Member (Customs), CBEC, North Block, New Delhi 110 001

Shri Onkar Nath, DG (Export Promotion), CBEC, Hotel Janpath, I floor, New Delhi 110 001 4.
Shri B K Juneja, Additional Director General (Export Promotion), CBEC, Hotel Janpath, I floor,
New Delhi 110 001 5.
Shri Deepak Garg, Under Secretary (ITA-I), CBDT, North Block, New Delhi 110 001 6.
Shri Dinesh Verma, CBDT, North Block, New Delhi 110 001 7.
Ms Neera Saggi, Development Commissioner, SEEPZ, Mumbai

Shri Arun Kumar Bit, Development Commissioner, Falta Special Economic Zone, Kolkata

Shri S C Panda, Development Commissioner, Noida Special Economic Zone, Noida, Uttar Pradesh 10.
Shri C J Mathew, Development Commissioner, Cochin Special Economic Zone, Kakkanad, Cochin 11.
Shri B Vijayan, Development Commissioner,

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Madras Special Economic Zone, Tambaram, Chennai 600045. 12.
Dr M V Subba Reddy, Development Commmissioner, Visakhapatnam Special Economic Zone, Visakhapatnam. 13.
Shri Upendra Vashisth, Joint Development Commissioner, Kandla Special Economic Zone, Kandla, Gandhidham (Kutch) (Gujarat) 14.
Shri T P Singh, Deputy Commissioner (Ind), Government of NCT of Delhi, Udyog Sadan, Patparganj, Delhi 110 092. 15.
Shri P K Santra, Deputy Director General of Foreign Trade,
Office of the DGFT, Udyog Bhavan, New Delhi 110011

Shri Amitabh Jain, Office of the DGFT, New Delhi 110 011 17.
Shri B S Krishna Prasad, Resident Director, Karnataka Udyog Mitra, Department of Commerce and Industries, Karnataka Bhavan, Khel Gaon Marg,
Andrews Ganj, New Delhi 110 049. 18.
Shri P K Padhy, Additional Development Commissioner, DC (SSI), Government of India, Nirman Bhavan, New Delhi 110 011 19.
Shri P K Chaudhery, Principal Secretary (Industries), Government of Haryana, Gurgaon 20.
Shri Tanaji Satre, Joint CEO, MIDC,
Government of Maharashtra, Mumbai 21.
Dr K Shivaji, Development Commissioner (Industries), Government of Maharashtra, Mumbai 22.
Shri S G Patil, General Manager (Marketing), MIDC, Government of Maharashtra, Mumbai.

Shri R J Shah, FCIA, Government of Gujarat, Ahmedabad 24.
Shri L B Singhal, DG, Export Promotion for 100% EOU and EPZs, New Delhi 110 016.

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Shri I Srinivas, Secretary (Industries), Government of Orissa, Bhubaneshwar 26.
Shri Ashok Meena, Managing Director, IDCO, Government of Orissa, Bhubaneshwar 27.
Shri S K Bansal, Joint Development Commissioner, Indore Special Economic Zone, Indore 28.
Shri A P Padhi, Resident Commissioner, Government of Orissa, New Delhi 29.
Shri S Misra, Resident Representative, Government of Gujarat, Ahmedabad 30.
Shri Dhruv Dhar, CSIDC, New Delhi 31.
Shri Ashok Sampatram, Principal Secretary (Industry), Government of Rajasthan, Jaipur

Shri Kuldeep Ranka, Managing Director, RIICO, Government of Rajasthan, Jaipur 33.
Shri J S Negi,

Shri K Rajaraman, Special Secretary, Industries Department, Government of Tamil Nadu, Chennai 35.
Shri Rattan Singh, Managing Director, PIPDIC, Pondicherry
36.
Shri Hempande, Commerce and Industry, Government of West Bengal, Kolkatta
37.
Ms. Sandhya Shukla, Ministry of Overseas Indian Affairs, Government of India, New Delhi 38.
Ms. Gauri Singh, Director, Department of Industrial Policy and Promotion, Udyog Bhavan, New Delhi 110 011 39.
Shri Inderjit Singh, Resident Commissioner, Government of Kerala, New Delhi 40.
Ms. Ratna Viswanathan, Director, Ministry of Defence, South Block, New Delhi 110 011 41.
Shri S R Dhaleta, Ministry of Law, Shastri Bhavan, New Delhi 110 001
42.
Shri Ajay Ponwal,
MIDC, Government of Maharashtra, Mumbai

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Annexure- II

List of authorised operations eligible for approval by the Board of Approval

(A) IT/ITES, Bio-technology & Gems & Jewellery SEZ:

i) Roads with Street lighting, Signals & Signage ii) Water treatment plant, water supply lines (dedicated lines upto source), sewage lines, storm water drains and water channels of appropriate capacity
iii) Sewage and garbage disposal plant, pipelines and other necessary infrastructure for sewage and garbage disposal, Sewage treatment plants iv) Electrical, Gas & PNG Distribution Network including necessary sub- stations of appropriate capacity, pipeline network etc
v) Security offices, police posts, etc, at entry, exit and other points within and along the periphery of the site.
vi) Effluent treatment plant and pipelines and other infrastructure for Effluent treatment vii) Office space viii) Parking including Multi-level car parking (automated / manual) ix) Telecom and other communication facilities including internet connectivity x) Rain water harvesting plant xi) Power ( including power back up facilities)
xii) Air conditioning xiii) Swimming pool xiv) Fire protection system with sprinklers, fire and smoke detectors xv) Recreational facilities including club house, Indoor/Outdoor games, gymnasium
xvi) Employee welfare facilities like ATMs, Crèche, Medical center and other such facilities
xvii) Shopping arcade/Retail space
xviii) Business/Convention Centre xix) Common Data centre with inter-connectivity xx) Housing/Service apartments
xxi) Play ground xxii) Bus bay xxiii) Food Services including Cafeteria, food court(s), Restaurants, coffee shops, canteens and catering facilities xxiv) Landscaping and water bodies
xxv) Clinic & Medical Centers xxvi) Wi Fi/Wi Max Services xxvii) Drip and Micro irrigation systems

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xxviii) Any other operation ancillary or incidental to operations specified above from (i) to (xxviii) which the Board of Approval may authorise from time to time.

(B) Sector Specific SEZs

i) Roads with Street lighting, Signals and Signage.
ii) Water treatment plant, water supply lines, sewage lines, storm water drains and water channels of appropriate capacity
iii) Sewage and garbage disposal plant, pipelines and other necessary infrastructure for sewage and garbage disposal and Sewage treatment plants iv) Electrical, Gas & PNG Distribution Network including necessary sub- stations of appropriate capacity, pipeline network etc
v) Security offices and police posts at entry, exit and other points within and along the periphery of the site.
vi) Effluent treatment plant and pipelines and other infrastructure for Effluent treatment vii) Office space/Shopping arcade/Retail space/ Multiplex
viii) Housing
ix) Hotel/Service apartments
x) Clinic / Medical Centers/ Hospital xi) School/Technical Institution/Educational Institution
xii) Parking including Multi-level car parking (automated / manual) xiii) Telecom and other communication facilities including internet connectivity xiv) Business/Convention Centre xv) Common Data centre with inter-connectivity xvi) Rain water harvesting plant xvii) Power ( including power back up facilities xviii) Rail head xix) Access control and Monitoring system xx) Swimming pool xxi) Fire Station, Fire protection system with sprinklers, fire and smoke detectors xxii) Recreational facilities including club house, Indoor/Outdoor games and
gymnasium xxiii) Employee welfare facilities like ATMs, Crèche, Medical center and other such facilities
xxiv) Play grounds xxv) Bus bays xxvi) Food Services including Cafeteria, food court(s), Restaurants, coffee shops, canteens and catering facilities

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xxvii) Landscaping and water bodies
xxviii) Wi Fi/Wi Max Services xxix) Drip and Micro irrigation systems xxx) Any other operation ancillary or incidental to operations specified above from (i) to (xxix) which the Board of Approval may authorise from time to time.

(C) Multi Product SEZs

ii) Roads with Street lighting, Signals and Signage iii) Water treatment plant, water supply lines, sewage lines, storm water drains and water channels of appropriate capacity
iv) Sewage and garbage disposal plant, pipelines and other necessary infrastructure for sewage and garbage disposal and Sewage treatment plants v) Electrical, Gas & PNG Distribution Network including necessary sub- stations of appropriate capacity, pipeline network etc
vi) Security offices and police posts at entry, exit and other points within and along the periphery of the site.
vii) Effluent treatment plant and pipelines and other infrastructure for Effluent treatment viii) Office space/Shopping arcade/Retail space/multiplexes
ix) Housing x) Hotel
xi) Clinic /Medical Centers / Hospital xii) School/Technical Institution/Educational Institution
xiii) Parking including Multi-level car parking (automated / manual) xiv) Access control and Monitoring system xv) Telecom and other communication facilities including internet connectivity xvi) Rain water harvesting plant xvii) Power ( including power back up facilities)
xviii) Swimming pool xix) Fire Station, Fire protection system with sprinklers, fire and smoke detectors xx) Rail head within the SEZ xxi) Port xxii) Airport/Air Cargo Complex xxiii) ICD xxiv) Banks xxv) Recreational facilities including club house, Indoor/outdoor games and gymnasium. xxvi) Employee welfare facilities like ATMs, Crèche, Medical center and other such facilities
xxvii) Play grounds

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xxviii) Golf course xxix) Bus bays xxx) Food Services including Cafeteria, food court(s), Restaurants, coffee shops, canteens and catering facilities xxxi) Landscaping and water bodies
xxxii) Wi Fi/Wi Max Services xxxiii) Drip and Micro irrigation systems
xxxiv) Any other operation ancillary or incidental to operations specified above from (i) to (xxxii) which the Board of Approval may authorise from time to time.

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Annexure III

Quantum of Social Infrastructure in the non-processing area of the Special Economic Zones

I IT/ITES, Biotechnology, Gems & jewellery SEZ:

• Shopping arcade/Retail space not exceeding 1000 sqm • Housing/Service apartments with total area not exceeding 10,000 sqm

Sector Specific SEZ:

• Office space/Shopping arcade/Retail space/ Multiplex not exceeding 50,000 sqm • Up to 7500 houses with total space not exceeding 7,50,000 sqm
• Hotel with 100 rooms/100 Service apartments with total built up area not exceeding 10,000 sqm • Clinic & Medical Centers including a maximum 100 bed Hospital • School/Educational Institution of total built up area not exceeding 25000 sqm

For IT/ITES, Bio-technology and gems & Jewellery Sector specific SEZs of 100 Hectares or more also the guidelines above shall be applicable.

Multi-product SEZs

• Office space/Shopping arcade/Retail space/multiplexes etc. not exceeding 200000 sqm • Up to 25000 houses with total space not exceeding 25,00,000 sqm
• Hotel with 250 rooms/250 Service apartments with total built up area not exceeding 25,000 sqm • Clinic & Medical Centers including a maximum 250 bed Hospital • School/Educational Institution of total built up area not exceeding 2,50,000 sqm

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Annexure - IV

Formal approvals given in BoA on 21.09.06

Sl. No.
Developer
Location
Product
Area (hectares) 1 DLF Commercial Developers Limited
Ranga Reddy District, Hyderabad, Andhra Pradesh IT/ITES 10.617 2 Information Technology and Communications (IT&C) Department - Hyderabad Urban Development Authority (HUDA) Sy. No. 239/240 (P), Kokapet Village, Serilingampalli Mandal, RR District, Andhra Pradesh
IT/ITES 47.6 3 DLF Limited
Sector 30, DLF City, Gurgaon, Haryana IT/ITES 12.14 4 Pioneer Urban Land and Infrastructure Limited Village Ghata, Gurgaon, Haryana, very close to NH-8 IT/ITES 40.48 5 DLF Cyber City Developers Limited
Sector No. 24 & 25A, DLF Cyber City, DLF City, Gurgaon, Haryana IT/ITES 12.54 6 Primal Projects Private Limited Banglore, Karnataka IT/ITES 10.36 7 Concord Investments (Banglore)
Banglore, Karnataka IT/ITES 13.44 8 Serene Properties Private Limited Airoli, District Thane, Maharashtra IT/ITES 14.07 9 Maharashtra Airport Development Company Limited (MADC) Mihan, Nagpur, Maharashtra Multi product 2086 10 Welspun Anjar SEZ Limited
Village Varshamedi, Taluka Anjar, Maharashtra Textile and Garment Sector 284 11 Balaji Infra Projects Limited Dighi Port, District Raigadh, Maharashtra Port based SEZ for multi product inclusive of FTWZ 100 12 Parsvnath Developers Limited
Indore, Madhya Pradesh IT/ITES 30.76

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13 Parsvnath Developers Limited
Sahastra Dhara Road, Dehradun, Uttranchal IT/ITES 14

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Annexure V

List of proposals deferred in BoA held on 21.09.06

Sl. No.
Developer
Location
Product
Area (hect.) Remarks 1 Parsvnath Developers Limited
Ranga Reddy District, Hyderabad, Andhra Pradesh Biotech- Pharma 10.11 Land ownership is not clear 2 K. Raheja Company Private Limited Pocharam, Ranga Reddy District, Andhra Pradesh IT/ITES 26.71 Land ownership is not clear 3 Shivajimarg Properties Limited 15, Shivaji Marg, New Delhi IT/ITES 10.06 It is not clear whether the court case has been settled. 4 Maharashtra Industrial Development Corporation (MIDC) Bhadravati Industrial Area, District Chandrapur, Maharashtra Captive Power Generation sector specific
1100 CBEC asked for more time to examine the proposal. 5 Maharashtra Industrial Development Corporation (MIDC) Usar Industrial Area, District Raigad, Maharashtra Captive Power Generation sector specific
103 CBEC asked for more time to examine the proposal. 6 Shapoorji Pallonji and Co. Ltd Village Phursungi, Taluka Haveli, Pune, Maharashtra IT/ITES 15.79 The land is in name of another subsidiary company. It was decided to ask the land owner to revise application. 7 M/s. DLF Akruti Infopark (Pune) Ltd. Pune (Maharashtra)
IT/ITES 24 State
Government requested for deferment

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