Agenda for meeting of Approval Committee meeting for Pune-Cluster to be held on 27 June 2023. — 11-6serum-bio-pharma-park

SEEPZ SPECIAL ECONOMIC ZONE ANDHERI (EAST), MUMBAI.

AGENDA FOR

MEETING OF THE APPROVAL COMMITTEE FOR SECTOR SPECIFIC SPECIAL ECONOMIC ZONE FOR BIOTECHNOLOGY AT PUNE OF M/S. SERUM BIO PHARMA PARK-SEZ.

Via Video Conferencing

DATE : 27.06.2023

TIME : 03.30 P.M.

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MEETING OF THE APPROVAL COMMITTEE FOR SECTOR SPECIFIC SPECIAL ECONOMIC ZONE FOR BIOTECHNOLOGY AT PUNE, UNDER THE CHAIRMANSHIP OF DEVELOPMENT COMMISSIONER, SEEPZ-SEZ ON 27.06.2023

INDEX

Agenda Item No.

Subject

Agenda Item No. 01 :- Confirmation of the Minutes of the Meeting held on 24.05.2022 Agenda Item No. 02 :- Monitoring of Performance for M/s. Serum Institute of India Pvt Ltd Unit-VI

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1 Minutes of the 44h Meeting of the Approval Committee meeting held under the Chairmanship of Development Commissioner SEEPZ-SEZ for Sector Specific Special Economic Zone for Bio-Pharma sector of M/s. Serum Bio Pharma Park

• SEZ, held on 24.05.2022 via Video Conferencing 1 Name of the SEZ M/s. Serum Bio Pharma Park - SEZ 2 Sector Bio-Pharma 3 Meeting No. 44th 4 Date 24.05.2022 Members present S r Name and Designation (S/Shri.) Department 1 C P S Chauhan Joint Development Commissioner Pune Cluster SEZ Pune 2 Ms. Pradnya R. Gholap, DCIT (TDS) Pune Nominee of Income Tax, Pune 3 Dr. Dileeraj Dabhole, Deputy DGFT Nominee of DGFT, Pune 4 Vaibhav Agarwal Superintendent Nominee of Customs, Pune Special Invitee Sr Name and Designation Department 1 Shri B. Ajay Kumar Specified Officer M/s. Serum Bio Pharma Park SEZ Agenda Item No.01: Confirmation of the Minutes of the 43rd meeting held on 26.04.2022 After deliberation, the committee approved the minutes of the 43rd UAC Meeting held on 26.04.2022 Agenda Item No.02: Application of M/s. SEZ Biotech Services Pvt. Ltd. (Co- Developer) for approval of additional List of Material for infrastructure development for authorized operations. The Committee was informed that the jurisdictional Specified Officer has submitted his verification report and has duly recommended for approval of list of material. Accordingly, after deliberation, Committee considered the request of the Co-Developer and approved the lists of goods viz. DG Set along with spares and accessories required for authorized operations in terms of Rule 12(2) of SEZ File No.S-SEZ-MINS0SBPP/1/2022-JDCP

2 Rules, 2006, totally valued at Rs.5 Crores, duly certified by the Chartered Engineer Vaibhav Sapre, Reg. No. M-167076-4. The meeting ended with vote of thanks to the Chair.

(Shyam Jagannathan, IAS) Chairman-cum- Development Commissioner File No.S-SEZ-MINS0SBPP/1/2022-JDCP

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

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AGENDA NOTE FOR CONSIDERATION OF THE APPROVAL COMMITTEE

a) Proposal: Monitoring of the performance of M/s. Serum Institute of India Pvt. Ltd Unit VI, for 3 years of 1st Block (FY 2019-20 to FY 2021-22) b) Specific Issue on which decision of UAC is required: Monitoring of performance for the period 2019-20 to 2021-22 (3 years of 1st block period) under Rule 54 of SEZ Rules, 2006 The details of the export projections are as detailed below:

c) Approved export Projections for Ist Block Period: (Rs. in Lacs) Year 1 2 3 4 5 FOB Value of Exports 0 3500 10000 319000 234000 FE Outgo 2405 11280 23115 138435 113545 NFE achieved -2405 -7780 -13115 180565 120455 d) Performance as compared to projections: FY 2019-20 to 2021-22

(Rs. In Lacs) Year Export F.E. OUTGO Projecte d Actual Raw Material (Goods/Services) C.G. import Other outflow Project ed Actual Project ed Actual Actual 2019- 20 3500 0.00 15000 250.91 67000 13694.5 6 20.55 2020- 21 10000 84015.33 31703.2 4 34640.9 2 234.84 2021- 22 319000 30865.81 43874.8 7 31226.9 9 1567.19 Total : 332500 114881.1 4 15000 75829.0 2 67000 79562.4 7 1822.58 Cumulative NFE achieved: FY 201--20 to 2021-22 (Rs. in Lacs) Year Cumulative NFE Achieved Cumulative % NFE Achieved 2019-20 -3102.42 0 2020-21 69635.81 82.88% 2021-22 39217.68 34.14% File No.S-SEZ-MONT0SBPP/5/2022-JDCP I/2246/2023 35

2 Employment Achievement (Direct): FY 2019-20 to 2021-22

The Unit has achieved employment of 511 employees as on 31.03.2022 e) Other Information: LOA No. & Date LOA No SEEPZ/NEWSEZ/SERUM- PUNE/10/2018-19/2868 dated 20- 02-2019 Location of Unit Serum Bio-Pharma Park, Off Soli Poonawalla Road, 212/2, Hadapsar, Pune – 411028. Validity of LOA 19.12.2024 Item(s) of manufacture/ Services Manufacturing (1) Vaccine for Human Medicine, Single or multi doses & in Bulk form – 210 million doses. (2) Immuno-Biological Product, unmixed, not put up unmixed., not put up in measured Doses or in forms or Packing for Retail Sale – 2.50 Million Doses (3) Immuno- Biologilical Products put up in measured Doses or in forms or packing for Retail Sale – 3.5 Million Doses. Date of commencement of production 20.12.2019 Execution of BLUT 35 Crores 15.03.2019, 35 Crores 14.06.2021. Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement Pending CRA Objection, if any NA Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any NA a) No. of employees as on 31.03.2022 511 Quantity and value of goods exported under Rule 34 (unutilized goods) NA Value Addition during the monitoring period NA Whether all the APRs being considered now has been filed well within the time limit, or otherwise. If no, details of the Year along with no of days delayed to be given. Yes The Specified Officer has submitted a report vide letter dated 11.05.2023, in the prescribed format along with point-wise reply to the discrepancies as follows:- File No.S-SEZ-MONT0SBPP/5/2022-JDCP I/2246/2023 36

3 (a) Export
Details of year-wise export as per the prescribed format: From the year 2019-2020 to 2021-2022 (Rs. In Lakhs)
Year/Period Figures as per APR Figures as per Softex/ SB / Customs Records Difference if any Reason for Difference/Remark (1) (2) (3) (4) (5) FY 2019-20 0 0 0 0 2020-21 84015.33 85974.50 (-)1959.17 Less FOB Value of Free Sample Export not considered for NFE calculation in APR, Less : FOB Value of Cancelled Shipping Bills but appeared in NSDL report 2020-21, Add : SEZ to EOU (Rule 53(j)(a) of SEZ Rules, 2006) – 2020-21 2021-22 30687.38 43671.34 (-) 12983.96 (Diff Between Third Party Export and Actual realized amount) VALUER OF Free Samples considered in NSDL, Value of Material sent for Machine Trial, Repair, Rejections etc. & Value of cancelled Invoices. (b) Import (i) (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis. (Rs. In Lakhs)

                                                                                        (Rs. In Lakhs)               

Year/Peri od Figures as per APR (RM Imported) Figures as per Customs Records / Bond Register Difference if any Reason for Difference/Remark 2019-20 15625.04 12063.63 3561.36 Add – Value of Non-CG procured under Zone to Zone transfer, Add : Value of Capital Goods procured under Zone to Zone transfer, Less : Re-import cases not considered, Add : Value of Capital Goods procured under Zone to File No.S-SEZ-MONT0SBPP/5/2022-JDCP I/2246/2023 37

4 Zone transfer. 2020-21 73595.89 58714.31 14881.58 Less : Value of Non-CG received from EOU which they have considered in APR, Less Re-import cases not considered, Less Cancelled BOE, Less Value of Capital Goods considered under Consumables, Add : Value of Non-CG procured under Zone to Zone transfer. 2021-22 76533.97 76879.29 (-) 345.32 Add – Consumables to CG (Wrongly categorized as consumables in NSDL, Add – Diff. between CIF and A. Value – HSS Transaction, Less –Equipment received from EOU on Loan basis (BOE No. 1002877, 1002877), Less – Equipment received from EOU (BOE No. 1000987), Actual Import as per NSDL – SPR, Add – Consumables to SPR (Wrongly categorized as consumables in NSDL), Add – Diff between CIF and A. Value – HSS Transaction, BOE Cancelled, Actual Import as per NSDL – NCG, Add – Diff between CIF and A. Value – HSS Transaction, Less – consumables to CG (Wrongly categorized as consumables in NSDL), Less – Consumables to SPR (Wrongly categorized as consumables in NSDL), Less – IND NCG received from EOU, Less – IMP NCG received from EOU, Less – IMP NCG received from EOU – Missed to considered in this APR, Less – BOE cancelled. (c) BLUT
1 Value of BLUT Executed (Duty foregone) (including for CG / Raw Material / Services) Value of Additional BLUT

1. Rs. 35 Crores – acceptance date 15.03.2019 2. Rs. 35 Crores - acceptance date 14.06.2021 File No.S-SEZ-MONT0SBPP/5/2022-JDCP I/2246/2023 38

5 executed TOTAL Duty value of BLUT Executed in Lakhs: Total - 70 Crores

2 Total Duty Foregone on goods & services procured Category Wise: Year Wise (Amount in Lakhs) F.Y. Goods Services Total Imp. & Ind. 2019-20 0 0 0 2020-21 23341. 23 265.60 23606.83 2021-22 27083. 23 1000.1 8 28083.41 3 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 No (d) Employment made as on date- (as on end of block period / year up to which monitoring is being done) 511
(e) Details of pending Foreign Remittance beyond Permissible period, if any (as on……….) To cross-check the same and verify whether necessary permission from AD Bank / RBI has been obtained. NO. (f) 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 (g) 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. No (h) Whether unit has filed any request for Cancellation of Softex No (i) Whether any Services provided in DTA / SEZ/EOU/STPI etc. against payment in INR in r/o IT/ITES Unit during the period. NO.

File No.S-SEZ-MONT0SBPP/5/2022-JDCP I/2246/2023 39

6 If yes, details thereof (year wise details to be provided) (j) 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 Nil. (k) Is the unit sharing any of their infrastructures 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. (l) 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. They are not filling DSPF for services procured online (NSDL) on the pretext that the NSDL rates are very high. (m) 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 They are not filing DTA procurement w.r.t. the goods online (NSDL) on the pretext that the NSDL rates are very high. (n) Details of the request IDs pending for OOC in respect of DTA procurement on the date of submission of monitoring report NIL. (o) 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 Nil. File No.S-SEZ-MONT0SBPP/5/2022-JDCP I/2246/2023 40

7 amount of duty / tax recovered or yet to be recovered (p) Whether any violation of any of the provision of law has been noticed/observed by Specified Officer during the period under monitoring. Nil f) 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”
ADC’s observations:  The Unit has achieved cumulative export revenue of Rs. 114881.14 Lakhs as against projected export of Rs. 3,32,500 Lakhs and achieved cumulative NFE of 39217.68 Lakhs which is 34.14% in 3 years of 1st Block Period i.e. during ( FY 2019-20 to 2021-22)  The unit has achieved Employment of 511 employees as on 31.03.2022.  As per SO in his report dated 10.05.2023, Unit is not filing DSPF for services procured online (NSDL). Further they are also not filing DTA procurement w.r.t. the goods online (NSDL).  Approval Committee may like to monitor the performance of the Unit for FY 2019-20 to 2021-22 (3 years of 1st Block period). File No.S-SEZ-MONT0SBPP/5/2022-JDCP I/2246/2023 41