Agenda for Approval Committee meeting for SEZ Pune Cluster to be held on 29 February 2024. — 01-2-embassy-pune-techzone-pvt-ltd-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. EMBASSY PUNE TECHZONE PVT. LTD.-SEZ

DATE : 29.02.2024

TIME : 12:00 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 29.02.2024

INDEX

Agenda Item No.

Subject

Agenda Item No. 01: - Confirmation of the Minutes of the meeting held on 09.02.2024 Agenda Item No. 02: - Application for approval to lease out the space to vendor for setting up canteen facility in SEZ premises submitted by M/s. Embassy Pune TechZone Pvt Ltd. (Developer) Agenda Item No. 03: - Monitoring of Performance for M/s. Flextronics Technologies India Pvt Ltd.

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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. Embassy Pune TechZone Pvt. Ltd-SEZ (Developer). located at Plot No.03, Rajiv Gandhi Infotech Park, Phase-II, Hinjewadi, Pune-411 057, for approval to lease out the space to vendor for setting up canteen facility in SEZ premises.

b. Specific issue on which decision of Approval Committee is required:

• Approval of the committee to lease out the space to vendor for setting up canteen facility in SEZ premises, as detailed below, in terms of Rule 11 (5) of SEZ Rules, 2006, as detailed below:

Sr. No. Name of the Vendor Activity Location Area. 1 M/s.

7-India Convenience Retail Ltd. To operate and provide

the canteen facility Ground Floor 2.1, Rio Grande, Embassy Pune TechZone Pvt Ltd.-SEZ 1100Sq.ft

c. Relevant Provision: As per Rule 11 (5) of SEZ Rules, 2006

“(5) The land or Build up space in the processing area or Free Trade and Warehousing Zone shall be given on lease only to the entrepreneurs holding valid Letter of Approval issued under Rule 19 and [the lease period shall not be less than five years but notwithstanding any other condition in the lease deed, the lease rights would cease to exist in case of the expiry or cancellation of the Letter of Approval:]

      PROVIDED that the Developer may, with the prior approval of

the Approval Committee, grant on lease land or built-up space, for creating facilities such as canteen, public telephone booths, first aid centres, creche and such other facilities as may be required for the exclusive use of the Unit.

d. Other information:

• M/s. Embassy Pune TechZone Pvt. Ltd., located at Plot No.03, Rajiv Gandhi Infotech Park, Phase-II, Hinjewadi, Pune-411 057 India has been granted Formal Approval bears No. F.2/365/2006-SEZ dated 25.06.2007

• Further, The Developer has submitted that: The services will be utilized by all the employees of units and File No.S-SEZ-PRO0EPTP/8/2022-JDCP

developers. A retail operator/ vendor will not avail any direct or indirect tax benefits available under the SEZ scheme. There will be live cooking in above mentioned premises. All necessary licenses and safety measures will be adhered to as required by authorities. • The Developer has enclosed following document: Online Application No. 422400055405 Service provider request letter dated 10.01.2024 Embassy Pune TechZone Pvt Ltd. Space availability confirmation letters dated 13.02.2024 Copy of Fire NOC Approval dated 09.02.2019 Copy of Form B dated 05.01.2024 e. ADC’s observation:

• The committee may kindly consider the proposal of the Developer to lease out the space to vendor for setting up canteen facility in SEZ premises, in terms of Rule 11 (5) of SEZ Rules, 2006. File No.S-SEZ-PRO0EPTP/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 APPROVAL COMMITTEE

a) Proposal: Monitoring of the performance of M/s. Flextronics Technologies India Pvt Ltd. an IT/ITES unit located in Embassy Pune TechZone Pvt. Ltd-SEZ, for 5 year from FY2018-19 to FY2022-23 of 2nd Block period. b) Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit for 5 year from FY2018-19 to FY2022-23 of 2nd Block period, in terms of Rule 54 of SEZ Rules, 2006. c) Relevant provisions: - As per 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”. A. Approved Projections: (2nd block Period)
(Rs. In Cr.)

2018-19 2019-20 2020-21 2021-22 2022-23 TOTAL FOB Value of Exports 155.56 210.96 231.73 248.26 177.10 1023.60 FE Outgo 10.20 5.78 3.29 2.42 20.37 42.06 NFE 145.37 205.17 228.44 245.84 156.73 981.54

B. Performance as compared to projections: FY 2021-22 to 2022-23 (Rs. In Cr.) Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projected Actual Actual 2018-19 155.56 138.48 0.00 0.00 17.72 0.03 0.00 2019-20 210.96 134.83 -0.22 0.00 2020-21 231.73 164.53 1.41 0.00 2021-22 248.26 177.09 0.52 0.00 2022-23 177.10 185.48 1.10 0.00 1 File No.S-SEZ-MONT0EPTP/76/2022-JDCP

Total 1023.60 800.40 0.00 0.00 17.72 2.84 0.00 C. Cumulative NFE achieved: (Rs. in Lakhs) Year Cumulative NFE Achieved Cumulative % NFE Achieved 2018-19 137.01 98.94 2019-20 270.39 98.93 2020-21 433.32 98.97 2021-22 608.77 99.00 2022-23 792.50 99.01 (d) Other Information:
LOA No. & Date SEEPZ/PEPPL-SEZ/FTIPL/06/2013- 14/1601 dated 05.02.2014 Location of Unit 3rd Floor in Wing A and 7th Floor in Wing A & B, Building Rhine (1.5), Embassy Pune TechZone Pvt Ltd.- SEZ, Plot No 03A, RGIP, Phase-II, Hinjewadi, Pune-411057 Validity of LOA 17.03.2024 Item(s) of manufacture/ Services IT & ITES Date of commencement of production 18.03.2014 Execution of BLUT 49.71 Crores Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement 05, years Valid till 31.01.2029 Pending CRA Objection, if any NA Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any NA Actual employment for the block period No. of employees as on 31.03.2023 1613 (Men-1019, Women-594) Area allotted (in sq.ft.) 81334 Sq.ft Area available for each employee per sq.ft. basis (area / no. of employees) 50.40 Sq. Ft. 2 File No.S-SEZ-MONT0EPTP/76/2022-JDCP

Investment

till date Building NA Plant & Machinery 30.01Crore 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 report vide letter dated 27.02.2024 has submitted reported as detailed below: a. Details of year-wise Exports are as under: (a) Export: From the year 2018-2019 to 2022-2023 (Rs. In Crore) Year/ Period Figures reported in APR (FOB Value) Figures as per Softex / Customs Records Difference , if any Reason for Difference / Remarks 2018-2019 138.48 139.10 -(0.62) Difference is due to Exchange Rate Variation. 2019-2020 134.83 135.43 -(0.60) Difference is due to Exchange Rate Variation. 2020-2021 143.68 143.27 0.41 Difference is due to Exchange Rate Variation. 2021-2022 177.09 177.42 -(0.33) Difference is due to Exchange Rate Variation. 2022-2023 185.48 186.11 -(0.63) Difference is due to Exchange Rate Variation. (b) Import (i) (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis: From the year 2018-2019 to 2022-2023 (Rs. In Crore) Year/ Period Figures as per Revised APR Figures as per SEZ Online / Customs Records Difference, if any Reason for Difference / Remarks 2018-2019 0.03 0.03 Nil NA 2019-2020 (0.22) (0.22) Nil NA 2020-2021 0.00 0.00 Nil NA 2021-2022 0.74 0.74 Nil NA 2022-2023 1.09 1.09 Nil NA (c ) BLUT 1 Value of BLUT Executed (Duty F.No. SEEPZ/PEPPL-SEZ/FTIPL/06/2013- 3 File No.S-SEZ-MONT0EPTP/76/2022-JDCP

foregone) (including for CG / Raw Material / Services) Value of Additional BLUT executed

Year: Date of acceptance

BLUT amount: TOTAL value of BLUT Executed 14/5764 dated 15.05.2014 BLUT Amount Rs. 7.29 Cr. F.No. SEEPZ-SEZ/PEPPL- SEZ/FTIPL/06/2013-14/Vol-II/33400 dated 03.11.2016 BLUT Amount -Rs. 8.50 Cr. F.No. SEEPZ-SEZ/PEPPL- SEZ/FTIPL/06/2013-14/VOL-II/1752 dated 08.07.2019 BLUT Amount -Rs. 33.92 Cr. TOTAL BLUT 49.71 Cr. 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. (Value In Crore) F.Y. Goods Services Imp. & Ind. 2018-2019 0.52 1.98 2019-2020 0.27 3.53 2020-2021 1.06 1.87 2021-2022 1.01 1.79 2022-2023 0.64 3.04 2023-2024 (Up to 31.01.2024) 0.34 2.02 Total 3.84 14.23 (a) Employment made as on date (as on end of block period / year up to which monitoring is being done) As on 31st March, 2023: Man: 1019 Woman: 594 Total: 1613 (b) Details

of

pending

Foreign Remittance beyond Permissible period, if any (as on 31.03.2023) To cross-check the same and verify whether necessary permission from AD Bank / RBI has been obtained. No Foreign Remittance is pending beyond the permissible period for export invoices raised till 31st March, 2023. (c) Whether all Softex has been filed for No Softex Forms pending for filing. 4 File No.S-SEZ-MONT0EPTP/76/2022-JDCP

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. (d) 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 have been certified.
(e) Whether unit has filed any request for Cancellation of Softex The Unit has filed Request ID No. 141900179175 for cancellation of Softex filed against Invoice No. FY-19-P02-18-19 dt. 20.05.2018. The unit has filed application dtd. 24.02.2021 to the JDC office for approval. (f) 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) They have not provided any services in DTA / SEZ / EOU / STPI etc. against payment in INR w.r.t. IT/ITES Services. (g) 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. Yes. Unit have cleared obsolete goods as E- waste for destruction as per below details: (Rs in Cr) FY. A.V. Duty Paid 18-19 0.03 0.00 19-20 0.10 0.02 20-21 0.07 0.01 21-22 1.11 0.34 22-23 1.18 0.18 Total 2.49 0.55 (i) Is the unit sharing any of their infrastructure with other units or are utilizing infrastructure of No 5 File No.S-SEZ-MONT0EPTP/76/2022-JDCP

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 (j) 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. No. However, the Unit has started filing DSPF Forms for the services procured. Till 23.02.2024, 1336 invoices have been approved by the SO Office. The Unit has submitted an undertaking to file the remaining DSPF. (k) 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 The Unit have filed all the DTA Procurement w.r.t. the goods procured by them during the monitoring period. (l) Details of the request IDs pending for OOC in respect of DTA procurement on the date of submission of monitoring report No any Request ID is pending for OOC. (m) 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 The Unit have dry pantry however they have not obtained permission for the same. The unit vide letter dtd. 20.03.2023 has requested JDC office for approval of setting up cafeteria & appointment of vendor. This office has requested the unit to submit details of duty-free goods procured for setting up of cafeteria along with duty liability. Reminders have been issued in this regard. Last reminder was sent on 23.02.2024. But till date the unit has not submitted reply for the same. The premises of the unit have been physically visited and requested the unit that to pay the applicable differential duty along with interest which remains to be paid on the 6 File No.S-SEZ-MONT0EPTP/76/2022-JDCP

amount of duty / tax recovered or yet to be recovered capital goods/ goods, procured / imported and installed in the proposed Cafeteria area. (n) Whether any violation of any of the provisions of law has been noticed / observed by the Specified Officer during the period under monitoring No (e) ADC’s observations:  The unit has achieved export of Rs. 800.40 Cr. against the projected export of Rs. 1023.60 Cr. i.e. 78.19%. in FY year 2022-23 on cumulative basis.  The unit has achieved NFE of Rs. 792.50 Cr. i.e., 99.01% in FY year 2022-23 on cumulative basis.  As per SO report the unit has achieved employment of 1613 employees (Men-1019, Women-594)  Further, the unit had merged with their Unit-2 in FY 2019-20, accordingly, their export value for the year was calculated after adding the value of export of Unit 2 with value of export with Unit 1  Approval committee may kindly monitor the performance of the for 5 year from FY2018-19 to FY2022-23 of 2nd Block period., in terms of Rule 54 of SEZ Rules, 2006. 7 File No.S-SEZ-MONT0EPTP/76/2022-JDCP