Agenda for Approval Committee meeting for Pune Cluster to be held on 30 May-2023. — 04-5-magarpatta-city-sez

SEEPZ SPECIAL ECONOMIC ZONE ANDHERI (EAST), MUMBAI.

AGENDA FOR MEETING OF THE APPROVAL COMMITTEE FOR SECTOR SPECIFIC SPECIAL ECONOMIC ZONE FOR IT/ITES AT PUNE OF M/S. MAGARPATTA TOWNSHIP DEVELOPMENT AND CONSTRCTION COMPANY LTD.- SEZ, HADAPSAR, PUNE.

Via Video Conferencing

DATE : 30.05.2023

TIME : 04.00 P.M.

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MEETING OF THE APPROVAL COMMITTEE FOR SECTOR SPECIFIC SPECIAL ECONOMIC ZONE FOR IT/ITES AT PUNE, UNDER THE CHAIRMANSHIP OF DEVELOPMENT COMMISSIONER, SEEPZ-SEZ ON 30.05.2023

INDEX

Agenda Item No.

Subject Agenda Item No. 01 :- Confirmation of the Minutes of the meeting held on 25.04.2023 Agenda Item No. 02 :- Application for Approval of regularization of Cafeteria in SEZ unit premises submitted by M/s. Danfoss Technologies Pvt Ltd. Agenda Item No. 03 :- Monitoring of Performance of M/s. Springer Nature Technology and Publishing Solutions Pvt Ltd.(LOA-25)

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Minutes of the 100 Meeting of the Approval Committee held under the Chairmanship of Zonal Development Commissioner SEEPZ-SEZ, Mumbai for Sector Specific Special Economic Zone for IT/ITES of Magarpatta Township Development and Construction Co. Ltd.-SEZ, Village Hadapsar, Tal. Haveli, Dist. Pune 411013, held on 25 .04.2023 via video conference 1 Name of the SEZ Magarpatta Township Development And Construction Co. Ltd.-SEZ 2 Sector IT/ITES 3 Meeting No. 100 4 Date 25.04.2023 Members present Sr Name and Designation (S/Shri.) Department 1 Smt. Mital S. Hiremath Joint Development Commissioner Pune Cluster-SEZ, Pune 2 Smt. Bhumika Saini DCIT, Nashik Nominee of Income Tax, Pune 3 Dr. Dileeraj Dabhole Dy. DGFT Nominee of DGFT, Pune 4 Smt. Sunita Jagtap Superintendent Nominee of Customs, Pune Special Invitee Sr Name and Designation Department 1 Shri B. Ajay Kumar Specified Officer Magarpatta Township Development and Construction Co. Ltd –SEZ Agenda Item No. 01: Confirmation of the Minutes of the 99th meeting held on 21.03.2023 After deliberation, the Committee confirmed the minutes of the 99th meeting of Approval Committee held on 21.03.2023 Agenda Item No.02: Monitoring of Performance of M/s. Entrata India Pvt. Ltd. After deliberation, the committee noted the performance of the unit for the 2nd year i.e., 2022-23 of 3rd block period. The unit has achieved cumulative NFE of Rs. 21820.72 lakhs i.e., 99.47% and employment of 160 employees, in the FY 2022-23. File No.S-SEZ-PRO0MTDC/10/2022-JDCP I/1974/2023 199

Agenda Item No.03: Monitoring of Performance of M/s. Springer Nature Technology & Publishing Solutions Pvt. Ltd. (LOA – 17). After deliberation, the committee noted the performance of the unit for 2nd year i.e FY 2022-23 of 3rd Block period of (out of 5 years Block period i.e. 2021-22 to 2025-26) . The unit has achieved cumulative NFE of Rs. 4051.79 lakhs i.e., 98.14% and employment of 270 employees, in 2 years out of 5 years of the 3rd Block period. Agenda Item No.04: Monitoring of Performance of M/s. Springer Nature Technology & Publishing Solutions Pvt. Ltd. (LOA – 25). As there was some technical issues in the agenda presented, After deliberation, the committee directed to take monitoring of performance of the unit in next UAC . Agenda Item No.05: Monitoring of Performance of M/s. Springer Nature Technology & Publishing Solutions Pvt. Ltd. (LOA – 26). After deliberation, the committee noted the performance of the unit for one year i.e. F.Y. 2022-23 of 2nd Block Period of 5 Years i.e. ( FY 2018-19 to 2022-23). The unit has achieved cumulative NFE of Rs. 62077.85 i.e. 99.00% and achieved employment of 952 employees in 2nd Block period of 5 years. Meeting ended with a vote of thanks to the Chair. (Shyam Jagannathan, IAS) Chairman-cum- Development Commissioner E-Mail- dcseepz-mah@nic.in File No.S-SEZ-PRO0MTDC/10/2022-JDCP I/1974/2023 200

1 GOVT. OF INDIA, OFFICE OF THE DEVELOPMENT COMMISSIONER, SEEPZ-SEZ (PUNE CLUSTER)

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AGENDA NOTE FOR CONSIDERATION OF THE APPROVAL COMMITTEE

a) Proposal: Proposal submitted by M/s. Danfoss Technologies Pvt. Ltd., an IT/ITES Unit located at Magarpatta City-SEZ, for regularization of Cafeteria in the SEZUnit-premises b) Specific issue on which decision of Approval Committee is required: Approval for regularization of cafeteria as per Instruction No 95 dated 11-06- 2019, as detailed below: Details of location and area allocated for Cafeteria: c) Relevant provisions: As per para 3 of Instruction No.95 dated 11.06.2019 “3. The issue was examined in this department and with the approval of competent authority, it is conveyed that the same could be allowed subject to the following condition The facilities as envisaged under the proviso to Rule 11(5) of the SEZ Rules could also be created by a Unit for its exclusive use subject to obtaining a NOC from the Developer as well as necessary NOCs/clearances/approvals from the relevant statutory authorities. The Units shall not be eligible for any exemptions, drawback, concessions or any other benefit available under Section 7 or Section 26 of the SEZ Act, for creating or operating such facilities”. d) Report submitted by the Specified Officer: The Specified Officer vide his report dated 18.05.2023submitted thatthe floor was taken over by M/s Danfoss Technologies from M/s Eaton India Innovation and during the transfer of assets M/s Eaton India Innovation Center LLP, has paid the duties i.e. 14,70,478/- IGST and interest of Rs.1,47,233/- for the goods and services utilized in the cafeteria area. Further,the unit vide letter dated 18.05.2023 has informed that they have not procured or used any duty free goods and services in the cafeteria of 3036.75 Sq.ft. However,regarding IGST payable on the rent portion, the issue will be dealt after the receipt of clarification from the MOC&I. Location Area 4th Floor, Building B7, Magarpatta City-SEZ 3036.75 sq.ft File No.S-SEZ-PRO0MTDC/8/2022-JDCP

2 e) Other information:  The unit was issued LOA No. SEEPZ/MTDCL-SEZ/DTPL/40/2020- 21Dtd. 17.02.2021 located at Building B4, Magarpatta City-SEZ, Village Hadapsar, Tal- Haveli, Dist. Pune 411013  Date of commencement: 02.08.2021  LOA valid up to: 01.08.2026  The unit has submitted that: o The Food Court services will be utilized by all the employees of the Units the vendor will bring only precooked food which are ready to serve. In some of cases preheating will be done on electric induction. o The unit has undertaken that, they will not avail any tax/duty benefits under the SEZ Act and Rules made thereunder. o  The unit has submitted following documents: o Fire NOC issued by Office of the Chief Fire officer, PMC in the name of Developer for Tower B7, 4th Floor, Magarpatta City. o The unit has submitted Form B certificate in the name of Unit for Tower B7, 4th Floor.  The Unit has not submitted the specific fire NOC in the name of the unit and accordingly they were asked to submit the same vide this office letter dated 03.02.2023. The unit in their reply has submitted that, they had visited Pune Municipal Corporation office for specific Fire NOC in the name of the Danfoss. However, officials from office of Pune Municipal Corporation informed that NOC is issued in the name of the owner only, so they are not eligible to apply for specific Fire NOC. Fire NOC in the name of Magarpatta is valid document. The above issue was taken up by this office with PMC Fire Department and they have vide letter dated 18.05.2023 informed that “if the cafeteria or canteen has cooking facilities, it is mandatory to install a Kitchen Suppression System for the protection of cooking equipment and kitchen area for the purpose of this use separate No-Objection certificate from the Fire Department is required to be obtained. However, if the cafeteria or canteen does not have cooking facilities and only pre-cooked food is served there is no need for a separate no-objection certificate from fire brigade for the use of such canteen, as it is expected that the entire building must have obtained a Final No-Objection certificate as per the Maharashtra Fire Prevention and Life Safety Act, 2006. In both the cases it is important that the fire fighting system provided in the building should be kept in good working condition and Form-B should be submitted to the fire department from the license agency twice in a year as per the provisions of Maharashtra Fire Act, 2006”. f) ADC’s Observations: File No.S-SEZ-PRO0MTDC/8/2022-JDCP

3  The unit had setup the said Cafeteria on 04.03.2016 prior to issuance of Instruction No. 95. Now, based on the said instruction, they intend to regularize the said facility.  The unit has clarified that vendor will bring only precooked food which are ready to serve.  Regarding IGST payable on the rent portion, the issue will be dealt after the receipt of clarification from the MOC&I  Approval Committee may like to consider the proposal of the Unit for regularization of Cafeteria, in the Unit premises, in terms of Instruction No. 95 issued by MOC&I. File No.S-SEZ-PRO0MTDC/8/2022-JDCP

GOVT. OF INDIA, OFFICE OF THE ZONAL DEVELOPMENT COMMISSIONER, SEEPZ – SEZ (PUNE CLUSTER)

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AGENDA NOTE FOR CONSIDERATION OF THE UNIT APPROVAL COMMITTEE

a) Proposal: Monitoring of the performance of M/s. Springer Nature Technology and Publishing Solutions Pvt. Ltd., (Unit-II) an IT/ITES unit located in Magarpatta City-SEZ, Pune, for FY 2022-23 of the 2nd Block Period . b) Specific Issue on which decision of UAC is required: Monitoring of the performance of the unit for FY 2022-23 of the 2nd Block Period (Out of 5 years block period of FY 2018-19 to FY 2022-23) in terms of Rule 54 of SEZ Rules, 2006 2 nd Block period i.e. FY 2022-23 (5

th Year out of 5 years Block Period i.e. FY 2018-

19 to FY 2022-23 The details of the export projections for 2ND block period, is as detailed below: (i) Approved Projections 2018-19 2019-20 2020-21 2021-22 2022-23 TOTAL FOB Value of Exports 1146.00 1355.00 1547.00 1733.00 1945.00 7729.39 FE Outgo 10 10 10 10 10 50.00 NFE 1136.00 1345.00 1537.00 1723.00 1935.00 7679.39 (I) Performance as compared to projections: FY 2022-23
(Rs. In Lacs) Year Export F.E. OUTGO Projected Actual Raw Material (Goods/Service s) C.G. import Other outflow Project ed Actu al Project ed Actual Actual 2022- 23 1945.00 3616.17 0.00 0.00 50.00 0.00 0.00 Total 1945.00 3616.17 0.00 0.00 50.00 0.00 0.00 (II) Cumulative NFE achieved: FY 2022-23
(Rs. in Lacs) Year Cumulative NFE Achieved Cumulative % NFE Achieved 2022-23 11403.66 99.93% File No.S-SEZ-MONT0MTDC/19/2022-JDCP

(III) Employment Achievement (Direct): FY 2022-23 The Unit has achieved employment of 113 employees (Men-79 Women-34) during 2nd block period of FY 2018-19 to FY 2022-23.  The Specified Officer vide his report dated 24.04.2023 has reported the following: A. EXPORT DETAILS (Rs. In Lacs) Year/Peri od Figures reported in APR (FOB Value) Figures as per Softex/Custom s Records Differenc e if any Reason for Difference/Remark 2022-23 3616.17 3,606.69 9.47

1. Amount of Rs 3.56 remained

to

be mentioned in filed APR, which has been wrongly included in Unit I APR. Actual amount should have been 3619.73 instead of 3616.17 2) Credit Note Rs. 6.04 raised due to excess pricing. 3)

Fluctuation

in Exchange Rate Rs. 19.07 (3 minus 1+2-) = Diff of 9.48 For the excess amount mentioned above of Rs 3.56 lakhs, revise APR is being filed by the unit. B. IMPORT DETAILS (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis. (Rs. In Lacs) Year/Period Figures reported in APR (FOB Value) Figures as per NSDL/Custo ms Records Difference if any Reason for Difference/Rema rk 2022-23 00 00 00 00

File No.S-SEZ-MONT0MTDC/19/2022-JDCP

C. BLUT DETAILS 1 Value of BLUT Executed (Duty foregone) (including for CG / Raw Material / Services) Value of Additional BLUT executed

Year: Date of acceptance

BLUT amount: TOTAL value of BLUT Executed Details submitted in BLUT Executed Rs. 46,32,918 Dated 13th March 2013 Additional BLUT Rs. 24,80,000 Dated : 04th April 2019 Additional BLUT Rs. 56,70,000 Dated : 14th February 2023 TOTAL BLUT Rs. 1,27,82,918 2 Total Duty Foregone on goods & services procured (Category- wise BLUT value utilized separately for imported and indigenous goods and services) This should be based on BLUT worksheet which provides for estimated value and duty foregone separately for each category of procurement. Year Import Indigen ous Goods Duty Forgon e Indig enous Servic es Duty Forgo ne Total 2022 -23 0.00 0.00 12.10 12.10 3 Balance in BLUT at the end of each F.Y. 1st Year in each category and overall basis …. 5th Year 10th Year, as the case may be Further, in view of the clarification issued by the Ministry of Commerce and Industry vide No. K43013(18)/2/2022-SEZ dated 15-02- 2023, as regard to Rule 22 (1) (iv) (iv) (d) of the SEZ Rules, 2006, there shall be no debit and credit from the BLUT amount, as such balance of BLUT could not be ascertained. 4 Has the Unit procured goods and or services without having sufficient balance in their BLUT? If yes, Month & Year when the BLUT was exhausted Details of the consignments and Total value of Goods procured

without

having sufficient or nil balance in BLUT However, it is to confirm that the unit has not exceeded the amount of duty involved for the activities provided in Rule 22 (1) (iii) (a to d) of the SEZ Rules, 2006, than the amount of duty involved in TOTAL BLUTs executed by the unit, at any given time. (i) Employment made as on date (as on end of block period / year up to which monitoring is being done) Year Men Women Total 2022-23 79 34 113 (j) Details of pending Foreign Remittance beyond Permissible period, if any (as on 31.03.2022) There is no remittance pending beyond permissible period File No.S-SEZ-MONT0MTDC/19/2022-JDCP

To cross-check the same and verify

whether

necessary permission from AD Bank / RBI has been obtained (k) Whether all softex has been filed for the said period. If no, details thereof. SO to also check whether unit has

obtained

Softex condonation from DC office / RBI and if approved, whether they have filed such pending Softex. No, Softex Forms has been pending for filing. I.e. for the period of 2022-23 (l) Whether all Softex has been certified, if so till which month has the same been certified. If not, provide details of the Softex and reasons for pendency. All the Softex Forms till March, 2023 has been certified. (m ) Whether unit has filed any request for Cancellation of Softex No (n) Whether any Services provided in DTA / SEZ/EOU/STPI etc. against payment in INR in r/o IT/ITES Unit during the period. If yes, details thereof (year wise details to be provided) No such case noticed. (o) SO to verify and certify whether the unit has updated the BLUT ledger Module in SEZ Online. Up-loading of the BLUT Module on SEZ online Portal Kept in abeyance as per office order No. 02/2023 dated 16-03-2023. (p) Has the unit cleared any Capital Goods procured duty free in DTA against payment of Duty, or otherwise? Full details to be provided along with value of assets and duty discharged No such case noticed. (q) Is the unit sharing any of their infrastructure with other units or are utilizing infrastructure of another unit in the same or other SEZ? If so, details thereof, including the details of the unit with whom the sharing is being made, and the payment terms If approval for sharing of common infrastructure has been obtained from UAC / DC office, the date of UAC / Approval letter to be indicated No File No.S-SEZ-MONT0MTDC/19/2022-JDCP

(r) Whether all DSPF for services procured during the said monitoring

period

under consideration has been filed by the unit and whether the same has been processed for approval by the SO Office. DSPF for services procured during the period of 2022-23 except March 23, which are being filed of total 4 invoices involving duty amount of Rs 1,14,092/- (s) Whether unit has filed all DTA procurement w.r.t. the goods procured by them during the monitoring period for the relevant period. If no, details thereof As per the record, DTA filed on SEZ Online System, by the unit, have been processed and approved till date. (t) Details of the request IDs pending for OOC in respect of DTA procurement on the date of submission of monitoring report As per the record on SEZ Online, no Out of Charge is pending. (u) Has the unit set up any cafeteria / canteen / food court in unit premises? If yes, whether permission from UAC / DC office has been issued, or otherwise office has been issued, or otherwise Whether unit has availed any duty paid goods / services for setting up such facility? If yes, whether unit has discharged such duty / tax benefit availed? details to be given including amount of duty / tax recovered or yet to be recovered Cafeteria/Pantry set up, has been noticed in the unit but no cooking activities are being carried out. No Permission from UAC/DC office has been taken. Unit has procured goods duty free i.e. Chairs from DTA, for which unit is ready to pay Applicable duties. (v) Whether any violation of any of the provisions of law has been noticed / observed by the Specified Officer during the period under monitoring No such case noticed (d) Relevant provisions: Rule 54 of SEZ Rules, 2006 “Performance of the Unit shall be monitored by the Approval Committee as per the guidelines given in Annexure appended to these rules”
(e) Other Information:
 LOA No. SEEPZ-SEZ/MTDCCL-SEZ/CPSPL/25/2012-13 dated 21.12.2012  Location: Wing B, Part Level , Tower IX, Magarpatta City-SEZ, Village Hadapsar, Tal. Haveli, Dist. Pune 411014  Date of Commencement of Production: 06.06.2013  Validity of LOA: 05.06.2023 File No.S-SEZ-MONT0MTDC/19/2022-JDCP

 Existing Block Period - FY 2018-19 to FY 2022-23 (f) ADC’s observations:  The unit has achieved export revenue of Rs. 3616.17 Lacs as against projected export of Rs. 1945.00 Lacs in 5th year of the 2nd Block period.  The unit has achieved Cumulative NFE of Rs. 11403.66 lakhs i.e. 99.93% in 5th year of 2nd Block period i.e for the FY 2022-23  UAC may like to monitor the performance of the Unit for FY 2022-23 i.e 5th year of the 2nd Block period (Out of 5 years block period of FY 2018-19 to FY 2022-23) in terms of Rule 54 of SEZ Rules, 2006.

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File No.S-SEZ-MONT0MTDC/19/2022-JDCP