Agenda for Approval Committee meeting for SEZ Pune Cluster to be held on 28 March 2024. — 01-eon-kharadi-phase-i

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. EON KHARADI INFRASTRUCTURE PVT. LTD.-SEZ, PHASE I.

DATE : 28.03.2024

TIME : 11:00 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 28.03.2024 INDEX

Agenda Item No.

Subject

Agenda Item No. 01 :- Confirmation of the Minutes of the meeting held on 29.02.2024 Agenda Item No. 02 :- Application for approval of Broad Banding of additional services without revision in Projections submitted by M/s. KION India Pvt Ltd. Agenda Item No. 03 :- Application for approval of sharing of IT Infrastructure submitted by M/s. Tietoevry India Pvt Ltd. Agenda Item No. 04 :- Monitoring of Performance for M/s. Sungard availability Service India Pvt. Ltd.

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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: - Application of M/s. KION India Pvt. Ltd., SEZ Unit located at EON Kharadi Infrastructure Pvt. Ltd.-SEZ, Phase - I for approval for Broad Banding of Additional Services without revision in projection.

b. Specific Issue on which decision of Approval Committee is required: -
Approval of Approval Committee for i. Broad Banding of additional items of service in the existing LOA as authorized operations as detailed below: ITC/ CPC Code Existing Item of Manufacture/Service Activity ITC/CP C Code Proposed

Additional activities 8672 Information

Technology

Enabled Services i.e Engineering and Design (CPC 8672) and (SAC-998333)

Mechanical Engineering Services • Develop layout drawings utilizing Dematic engineering tools for following areas: • Point load for header steel and suspended equipment • Air piping and related components • Structural to include catwalks, racking, platforms • Installation drawings • As-built drawing sets • Assemble and compile project documentation and engineering files (including CAD/ELM) • Participate in Tech Reviews with various Dematic Discipline to included bit not limited to (Application Engineering, Research & Development, Solution Development and Project Management) • Drawing Inspection • Perform order entry and confirmation checks 84230 and 84240

84230 and 84250 Software Development (SAC- 998314, CPC-84230 and 84240) • Onboard and off Board software for mobile automated forklift trucks. • Artificial intelligence (AI) functions, connectivity, and cybersecurity solution for embedded systems. • Onboard software for electrical and electronics components • Software testing Other

development support

(SAC-998319, CPC-84230 and 84250) • Cost engineering calculation and analytics • Master Data Maintenance • CAD Services File No.S-SEZ-PRO0EON1/13/2022-JDCP I/4076/2024 68

• Assist in Project Coordination and Turnover meetings

Electrical Engineering and / or Control Service: • Develop layout drawings utilizing Dematic engineering tools for following areas: • Hardware Design and electrical device control • Control Panels • As-Built drawing sets • Develop system control visualization • Develop PLC emulation and testing • Perform order entry and confirmation checks • Develop PLC logic design and assist in development • Participate in Technical Reviews with various Dematic Discipline to include but not limited to (application Engineering, Research & Development, Solution development and project Management) • Drawing inspection • Assist in Project Coordination and Turnover meetings

c. Relevant Provision: As per 1st proviso to Rule No. 19(2) of SEZ Rules, 2006 [“Provided that the Approval Committee may also approve proposals for broadbanding, diversification, enhancement of capacity of production, change in the items of manufacturing or service capacity, if it meets the requirements of rule 18”].

d. Other Information: - • M/s.KION India Pvt. Ltd. granted LOA NO. SEEPZ-SEZ/EKIPL- SEZ/KIPL/53/2021-22 Dated 12.11.2021. • Location: : 6th &7th Floor, Wing-2 Cluster B, EON Kharadi Phase-I SEZ, Plot No. 1 Survey No. 77, MIDC Kharadi Knowledge Park, Pune-411014. • DCP of the unit is 21.04.2022 • LOA Validity up to 20.04.2027. • Reason for Broad Banding of Services: The unit has submitted that after considering the growth prospects, they wish to make changes to the business plans outlined in the project report submitted along with the initial application for setting up the new SEZ File No.S-SEZ-PRO0EON1/13/2022-JDCP I/4076/2024 69

unit. According to the revised business plan, the unit proposes to expand its operations by adding additional activities.

• Reason for No Changes in Export Projections on account of inclusion of additional services: The Unit vide letter dated 13.03.2024 has submitted that they have asserted that they will not able to meet their projected export targets due to a downturn in their global business affairs. To address the deficit and meet these export targets, they have decided to undertake additional activities from their SEZ Unit. Accordingly they have requested to incorporate additional activities in their LOA.

e. ADC Observation: - • Approval Committee may consider the proposal of the unit for Broad Banding of Additional Services without revision in projections, in terms of Rule 19(2) of SEZ Rules, 2006.

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File No.S-SEZ-PRO0EON1/13/2022-JDCP I/4076/2024 70

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

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AGENDA NOTE FOR CONSIDERATION OF UNIT APPROVAL COMMITTEE

a. Proposal: - Application submitted by M/s. Tietoevry India Pvt. Ltd an IT/ITES unit located at Ground to 5th Floor, Wing 1, Cluster D, EON Free Zone MIDC Kharadi Knowledge Park Pune-411014 for approval w.r.t. sharing of IT infrastructure (network devices, server and Data connectivity link) with other SEZ units. b. Specific Issue on which decision of Approval Committee is required: -

Approval for sharing of infrastructure facilities with their other SEZ units namely, Tietoevry Fintech India Pvt. Ltd.(TFIPL) and Tietoevry Tech Services India Pvt. Ltd.(TTSIPL) located at Wing 1 Cluster D EON Kharadi Infrastructure Pvt. Ltd. under Rule 27(5) of SEZ Rules, 2006.

Details of infrastructure facilities to be shared are as detailed below:

Sr. No. SEZ unit Name and Address Name of Sharing IT infrastructure Facility to be shared 1

2 M/s. Tietoevry Fintech India Pvt. Ltd.(TFIPL) EON kharadi Infrastructure -SEZ

M/s. Tietoevry Tech Services India Pvt. Ltd.(TTSIPL) EON kharadi Infrastructure -SEZ

Server Sharing i. Server Dell EMC NX 33240 ii. Tape Library Dell EMC ML 3 Tape iii.Server Power Edge R640

1

M/s. Tietoevry Fintech India Pvt. Ltd.(TFIPL) EON kharadi Infrastructure -SEZ

Network Device Sharing i. Switch ii. Wireless Access Point iii.WLAN Controller iv.Firewall v. Router 1

2 M/s. Tietoevry Fintech India Pvt. Ltd.(TFIPL) EON kharadi Infrastructure –SEZ

M/s. Tietoevry Tech Services India Pvt. Ltd.(TTSIPL) EON kharadi Infrastructure -SEZ

Data Connectivity link Sharing Service Providers i. TCL ii. TTML iii.Airtel

c. Relevant provisions: - File No.S-SEZ-PRO0EON1/24/2022-JDCP I/4069/2024 275

As per Rule 27(5) of SEZ Rules, 2006 which prescribes

“A unit may import or procure from Domestic Tariff Area, all types of goods and services, without payments of duty, taxes or cess for creating a central facility for use by units in Special Economic Zone and where such facility is created for software development, the same may also be accessed by software exporters of Domestic Tariff Area.”

Further, in the case of M/s. RBS Services India Pvt. Ltd. for sharing of central facility of Network infrastructure, duty exempted assets and common area of its unit located in IT/ITES SEZ of Gurgaon Infospace Ltd., MOC&I vide its letter No. K-43013(616)3/2018-SEZ dated 06.02.2019 has clarified the following;

"I am directed to refer to Noida SEZs letter No. 10/351/2010-SEZ dated 21.12.2018 on the subject mentioned above and to state that the request of M/s. RBS Services India Pvt. Ltd. has been examined in this department and it has been decided with the approval of the competent authority that the case appears to be falling clearly in the ambit of Rule 27(5) of SEZ Rules, 2006" d. Other Information: - • M/s. Tietoevry India Pvt. Ltd. has been granted LOA No. SEEPZ- SEZ/PUNE/2K/2008-09/336 Dated 25.04.2009 • Location: Ground to 5th Floor, Wing 1, Cluster D, EON Free Zone MIDC Kharadi Knowledge Park Pune-411014 • LOA valid up to: 30.06.2024 • The Unit has submitted following documents: i. List of SEZ Units in India (Annexure I) ii. List of Server sharing (Annexure 2) iii.List of Network Devices sharing Annexure 3 iv.List of Data Connectivity link sharing (Annexure 4 to 6) d. ADC’s Recommendations:
The proposal of the unit for sharing of IT infrastructure facilities with their SEZ units TIFPL and TTSIPL located at EON Kharadi Infrastructure Pvt. Ltd. Phase-I may be considered by the Approval Committee in terms of Rule 27(5) of SEZ Rules, 2006

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File No.S-SEZ-PRO0EON1/24/2022-JDCP I/4069/2024 276

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. Sungard availability Service India Pvt. Ltd., an IT/ITES unit located at 2nd Floor, Wing 4, Cluster D, Plot No.1, S.No. 77, MIDC, Kharadi Knowledge park, Pune-411014 for the following period: Last Year of the 2nd Block Period i.e. FY 2021-22,
First Year of the 3rd Block Period i.e FY 2022-23. b. Specific Issue on which decision of Approval Committee is required: Monitoring of the performance of the unit for last Year of the 2nd Block Period i.e. FY 2021-22 during 2017-18 to 2021-22 & first Year of the 3rd Block Period i.e FY 2022-23 during 2022-23 to 2026-27.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”.

I. Performance as compared to projections: last year of 2nd Block period i.e. FY 2021-22 during (2017-18 to 2021-22)

    Approved Projections
                                                                    (Rs. in Crores)

2017-18 2018-19 2019-20 2020-21 2021-22 Total FOB Value of Exports 207.80 242.21 266.43 146.37 133.44 996.25 FE Outgo 16.34 26.01 28.43 0.00 0.10 70.88 NFE 191.46 216.20 238.00 146.37 133.34 925.37

Performance as compared to projections: (Rs. in Crores)

Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projected Actual Actual 2021-22 133.34 104.19 0.00 0.00 0.00 0.00 73.50 Total 133.34 104.19 0.00 0.00 0.00 0.00 73.50

  Cumulative NFE achieved:                                                (Rs. in Crores)

File No.S-SEZ-MONT0EON1/5/2022-JDCP I/4075/2024 88

Year Cumulative NFE Achieved Cumulative % NFE Achieved 2021-22 619.22 87.53%

II.Performance as compared to projections: 1st year of 3rd Block period i.e. FY 2022-23 during (2022-23 to 2026-27)

    Approved Projections:                                            (Rs. in Crores)

2022-23 2023-24 2024-25 2025-26 2026-27 Total FOB Value of Exports 120.09 125.33 129.99 135.08 140.38 650.87 FE Outgo 0.8 1.20 2.50 2.50 2.50 9.50 NFE 119.29 124.13 1127.49 132.58 137.88 641.37

Performance as compared to projections: (Rs. in Crores)

Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projected Actual Actual 2022-23 120.09 87.32 0.00 0.00 0.00 0.00 0.00 Total 120.09 87.32 0.00 0.00 0.00 0.00 0.00

  Cumulative NFE achieved:                                                (Rs. in Crores)

Year Cumulative NFE Achieved Cumulative % NFE Achieved 2021-22 85.61 98.03%

(III) Employment Achievement (Direct): FY 2022-23 The Unit has achieved employment of 297 employees (Men-232, Women-65) as on 31.03.2023. 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. & Date SEEPZ-SEZ/EKIPL- SEZ/SIAIPL/14/2011-12/17031 Dated 16.11.2011 Location of Unit 2nd Floor, Wing 4, Cluster D, Plot No.1, S.No. 77, MIDC, Kharadi I/4075/2024 89

Knowledge park, Pune-411014 Validity of LOA 30.04.2027 Item(s) of manufacture/ Services IT & ITES Date of commencement of production 01.05.2012
Execution of BLUT 54.38 Crores Outstanding Rent dues NA Labour Dues NA Validity of Lease Agreement 12 years Pending CRA Objection, if any NA Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any NA Projected employment for the block period No. of employees as on 31.03.2023 297 employees (Men-232, Women-65) Area allotted (in sq.ft.) 30565.66 Sq.ft Area available for each employee per sq.ft. basis (area / no. of employees) 102.91 Sq. Ft. Investment till date

Building 7.36 Crores Plant & Machinery 30.80 Crore 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 Officers vide letter dated 22.03.2024 has submitted APR verification report for the FY 2021-22 and FY 2022-23, in the prescribed which is as detailed below;

(A) EXPORT (Rs. In Crores)

Year/ Period Figures reported in APR Figures as per Softex/ Customs Records Difference if any Reason

for Difference/Rema rk I/4075/2024 90

(1) (2) (3) (4) (5) 2021- 22 104.19 103.62 -0.57 Description Amount Exchange Rate difference Rs. 0.57 Total Rs. 0.57

2022- 23 87.32 87.46 0.14 Description Amount Exchange Rate difference Rs. 0.14 Total Rs. 0.14

B. IMPORT i. (Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis.) (Rs. In Crores) Year/Per iod Figures reported in APR (FOB Value) Figures as per Customs Records Difference if any Reason

for Difference/Remark (1) (2) (3) (4) (5) 2021-22 0.00 0.00 0.00

2022-23 0.00 0.00 0.00

ii. Raw Material (Rs. In Crores)

Year/Per iod Figures reported in APR (FOB Value) Figures as per Customs Records Difference if any Reason

for Difference/Remark (1) (2) (3) (4) (5) 2021- 2022 0.00 0.00 0.00

2022- 2023 0.00 0.00 0.00

(‘C) BLUT (Amount in ‘Crores’) 1

Value of BLUT Executed (Duty foregone) (including for CG/ Raw Material/ Services)

Date of Acceptance BLUT Amount 06.01.2012 1.26 24.06.2014 0.42 I/4075/2024 91

Value of Additional BLUT executed • Year: Date of acceptance • BLUT amount:

TOTAL value of BLUT Executed 31.07.2015 0.58 04.11.2015 5.04 25.04.2022 16.20 02.08.2022 30.89 Total 54.38

2 Total Duty Foregone on goods & services procured

Category Wise:

Year Wise:

FY Goods Imported & Indigenous Services Imported

& Indigenous 21- 22 0.00 2.04 22- 23 0.00 2.13 Total 4.17

(d) Employment made as on date (31.03.2023) (as on end of block period/ year up to which monitoring is being done) Men:232 Women: 65 Total No Employment : 297 (e) 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.

FY Amount of write Off in INR Amount of Write Off in USD 21- 22 8213.32 110.19337 I/4075/2024 92

22- 23 1075.55 13.671016 Total 9288.87 123.86

Sungard AS Group Holding Company in USA has gone into bankruptcy. Hence is unable to pay the dues to its vendors as per the ruling by US court on this matter. Sungard India has filed an application dated 12-05-23 to RBI through the AD bank for the write off and it is under process.

Enclosed

herewith

the application made to the RBI. (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. Yes (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. Yes (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. If yes, details thereof (year wise details to be provided) No.

(j) SO to verify and certify whether the unit has updated the BLUT ledger Module in SEZ Online. NA (k) Has the unit cleared any Capital Goods procured duty free in DTA against Payment of Duty, or otherwise. Yes, Unit has clear capital goods as a waste and scrap after payment of duty. FY Assessable ValueDuty Paid Rs I/4075/2024 93

Full details to be provided along with value of assets and duty discharged Rs in crores in crores 2021- 22 0.02 0.003 2022- 23 1.28 0.24

(l) 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. (m ) 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.
All the DSPF filed has been approved except the following mentioned. In Cr. Year No of Inv. Amt 21-22 113 0.21 22-23 437 0.66 However, unit has confirmed vide letter dated 19-03-2024 that all the above pending DSPF will be filed by March, 2024. (n) 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 Yes (o) Details of the request IDs pending for OOC in respect of DTA procurement No I/4075/2024 94

on the date of submission of monitoring report (p) 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. 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 No cafeteria set up in the unit (q) Whether any violation of any of the provisions of law has been noticed/ observed by the Specified Officer during the period under monitoring. No

ADC’s observations:

1. The Unit has achieved export revenue of Rs. 104.19 Crores as against projected export of Rs. 133.34 Crores and achieved cumulative NFE of Rs. 619.22 Crores which is 87.53% in last year of 2nd block period i.e. 2021-22 during FY 2017-18 to FY 2021-22.

2. The Unit has achieved export revenue of Rs. 87.32 Crores as against the projected export of Rs. 120.09 Crores and achieved cumulative positive NFE of Rs. 85.61 Crores which is 98.03% in 1st year of 3rd Block period i.e. 2022-23 during FY 2022-23 to 2026-27.

3. The Unit has achieved employment of 297 employees (Men-232, Women-65) as on 31.03.2023.

4. The Unit is required to file the pending DSPF.

5. Approval Committee may monitor the performance of the Unit, in terms of Rule 54 of SEZ Rules, 2006 for the following period : Last year of 2nd Block Period i.e 2021-22. (1 year) First year of 3rd Block i.e. FY 2022-23 (1 year)

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