Agenda for Approval Committee meeting for SEZ Pune Cluster to be held on 28 March 2024. — 12-serum-biopharma-park-sez

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.

DATE : 28.03.2024

TIME : 11.00 A.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 28.03.2024

INDEX

Agenda Item No.

Subject

Agenda Item No. 01 :- Confirmation of the Minutes of the Meeting held on 27.06.2023 Agenda Item No. 02 :- Monitoring of Performance for M/s. Serum Institute of India Pvt Ltd Unit-II

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1 Minutes of the 45h 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 27.06.2023 via Video Conferencing 1 Name of the SEZ M/s. Serum Bio Pharma Park - SEZ 2 Sector Bio-Pharma 3 Meeting No. 45th 4 Date 27.06.2023 Members present S r Name and Designation (S/Shri.) Department 1 C P S Chauhan Joint Development Commissioner Pune Cluster SEZ Pune 2 Pradnya R. Gholap, DCIT (TDS) Pune Nominee of Income Tax, Pune 3 Dr. Dileeraj Dabhole, Deputy DGFT Nominee of DGFT, Pune 4 Sunita Jagtap 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 Agenda Item No.01: Confirmation of the Minutes of the 44th meeting held on 24.05.2022 After deliberation, the committee approved the minutes of the 44th UAC Meeting held on 24.05.2022 Agenda Item No.02: Monitoring of the performance of M/s Serum Institute of India Pvt Ltd – Unit VI : After deliberation, the committee noted the performance of the unit for 3 years i.e., 2019-20 to 2021-22 of the 1st block period. The unit has achieved cumulative export revenue of Rs. 114881.14 Lakhs as against projected export of Rs. 332500 Lakhs & achieved cumulative NFE of Rs. 39217.68 Lakhs which is 34.14% in 3 years of 1st Block Period i.e. during FY 2019-20 to 2021-22 and achieved Employment of 511 employees as on 31.03.2022 in the FY 2021-22. The Committee after deliberations directed the Specified Officer to take the matter of ICE gate system being synchronized with the NSDL with the competent File No.S-SEZ-MINS0SBPP/1/2022-JDCP I/2323/2023 17

2 jurisdictional authority and meanwhile the NSDL compliances would unanimously apply to the Developer and the Units and directed SO to take up the matter with the unit. The meeting ended with vote of thanks to the Chair.

(Shyam Jagannathan, IAS) Chairman-cum- Development Commissioner Email- dcseepz-mah@nic.in File No.S-SEZ-MINS0SBPP/1/2022-JDCP I/2323/2023 18

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 II, for 5 years of 3rd Block (FY 2019-20 to FY 2023-24 Upto Sept., 23)

b. Specific Issue on which decision of Approval Committee is required: Monitoring of performance for the period 2019-20 to 2023-24 (Up to Sept., 23) (5 years of 3rd block period) under Rule 54 of SEZ Rules, 2006.

The details of the export projections are as detailed below:
c. Approved export Projections for 3rd Block Period: (Rs. in Crores)

Year 1 2 3 4 5 Total FOB Value of Exports 106.80 20.50 29.00 41.75 58.75 256.80 FE Outgo 46.80 23.55 23.55 21.05 18.05 133.00 NFE achieved 60.00 -3.05 5.45 20.70 40.70 123.80

d. Performance as compared to projections: FY 2019-20 to 2022-23
(Rs. In Crores) Year Export F.E. OUTGO

Projected

Actual Raw Material (Goods/Services) C.G. import Other outflow Projected Actual Projected Actual Actual 2019-20 106.80 17.42

79.20 20.24 67.25 5.67 89.40 2020-21 20.50 45.16 51.33 1.61 179.66 2021-22 29.00 26.31 70.13 5.92 228.38 2022-23 41.75 271.80 97.67 4.69 160.08 2023-24(Upto Sept. 23) 58.75 726.54

38.77 0.66 39.08 Total : 256.80 1087.23 79.20 278.14 67.25 18.55 696.60 Cumulative NFE achieved: FY 2019--20 to 2022-23 (Rs. in Crores)

Year Cumulative NFE Achieved Cumulative % NFE Achieved 2019-20 -96.09 -551.44% 2020-21 -261.18 -417.34% 2021-22 -490.82 -552.14% 2022-23 -460.63 -127.71% 2023-24(upto Sept., 23) 64.65 5.95%

Employment Achievement (Direct): FY 2019-20 to 2023-24(Upto Sept. 23)

The Unit has achieved employment of 180 Nos. employees (Men – 167, Women – 13) File No.S-SEZ-MONT0SBPP/1/2024-JDCP I/4097/2024 18

as on 30.09.2024 e. Other Information: LOA No. & Date SEEPZP-SEZ/04(2006)/02/2006-07/5376 dated 28.07.2006 (As amended)

Location of Unit Serum Bio-Pharma Park, Off Soli Poonawalla Road, 212/2, Hadapsar, Pune – 411028. Validity of LOA 31.10.2023 Item(s) of manufacture/ Services R & D of Pneumococcal Vaccine/Conjugate Vaccine, CRM 197 (Diptheria toxin genetically detoxified, Acelluar, Pertussis, Monoclonal Antibodies, Rota Virus Vaccines.

Date of commencement of production 01.11.2008 Execution of BLUT 49.32 Crores. 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 30.09.2023 180 (Men – 167, Women – 13) 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 27.03.2024 in the prescribed format along with point-wise reply to the discrepancies as follows:- a. Export
(Rs. In Crores)
Year / Period Figures as per APR Figures as per SB / Customs Records Difference if any Reason for Difference/Remark (1) (2) (3) (4) (5) 2019-20 17.42 1.40 16.02The unit is involved in providing R&D services. The amount shown in APR is Inward remitance 2020-21 45.16. 0.23 44.93 I/4097/2024 19

received against the said services. The amount shown in the NSDL are against the export of samples sent for clinical /machine trails on FOC basis and as such could not be taken into consideraton. As regards the period Apr 23 to Sep 23, unit has submited that an amount of Rs. 700.00 Crores is expected to be received by 31.03.2024. As on date the unit has received an amount of Rs.200 Crores out of Rs. 700 Crores. 2021-22 26.31 0.94 25.37 2022-23 271.80 0.24

271.56 2023-24 (upto Sep 23) 26.54 (Remitance recd upto Sept 2023) + 700.00 (shown as receivable in the APR) 35.01

691.53

b. Import i. (Capital Goods, raw material, spares including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis. (Rs. In Crores) Year / Period Figures as per APR Figures as per Customs Records / Bond Register Difference if any Reason for Difference/Remark 2019-20 23.98 30.74 -6.76 Reconciliaton sheet is atached. 2020-21 61.33 58.36 2.97 2021-22 46.97 47.00 -0.03 2022-23 70.42 72.35 1.93 2023-24 (upto Sep 23) 62.61 62.40 0.21

c. Value of Goods and Services Procured domestically (to be cross verified with GSTR-2A – (Since multiple units in the SEZ - not possible to verify from GSTR-2A).

Year value of Goods procured (Rs. In Crores) Value of services procured.(Rs. In Crores) Total 2019-20 5.97 32.47 38.44 2020-21 6.92 99.6 106.52 2021-22 22.72 117.57 140.29 2022-23 17.94 112.45 130.39 2023-24 (Upto Sep 23) 10.30 33.78 44.08

d. BLUT – (Bond cum Legal Undertaking)

I/4097/2024 20

1 Value of BLUT Executed (Duty foregone) (including for CG / Raw Material / Services) Value of Additonal BLUT executed • Year : Date of acceptance • BLUT amount:

TOTAL value of BLUT Executed

1. Rs.3.50crores – acceptance date – 09.06.2008
2. Rs.1.60crores – acceptance date – 28.03.2014
3. Rs.10crores – acceptance date – 03.05.2016
4. Rs.34.22 crores – acceptance date – 17.10.2019
5. Rs.50.00 crores – acceptance date – 27.03.2024

Total Value of BLUT – Rs.99.32 crores.

2 Total Duty Foregone on goods & services procured (Category-wise BLUT value utlized separately for imported and indigenous goods and services) This should be based on BLUT worksheet which provides for estmated value and duty foregone separately for each category of procurement. Partculars Duty foregone (Rs. In Crs) 19-20 20-21 21-22 22-23 23-24 Goods 4.87 27.95 14.13 16.76 7.94 Imported 3.8 27.02 10.17 13.55 6.24 Indigenous 1.07 0.93 3.96 3.21 1.70

Services 32.78 52.29 62.3 49.06 95.41 Imported 19.3 34.38 41.34 28.82 89.35 Indigenous 13.48 17.91 20.96 20.24 6.06

3 Balance in BLUT at the end of each F.Y. 1st Year in each category and overall basis …. 5th Year

BLUT balance as on end of 5th year (upto Sep 23) is Rs.49.32 crores.

4 Has the Unit procured goods and or services without having sufcient balance in their BLUT. The total bond amount was Rs. 49.32 Crores The unit has executed an additonal bond for services of Rs.50 Crores which I/4097/2024 21

If yes, Month & Year when the BLUT was exhausted Details of the consignments and Total value of Goods procured without having sufcient or nil balance in BLUT now covers total procurement tll date.

(e) Employment made as on date (as on end of block period / year upto which monitoring is being done) Men : 167 nos. Women : 13 nos. Total : 180 nos. (f) Details of pending Foreign Remitance beyond Permissible period, if any (as on ……….)To cross-check the same and verify whether necessary permission from AD Bank / RBI has been obtained. Nil as per APRs fled by the unit.

(g) Whether all sofex has been fled for the said period. If no, details thereof. SO to also check whether unit has obtained Sofex condonaton from DC ofce / RBI and if approved, whether they have fled such pending Sofex. N.A (h) Whether all Sofex has been certfed, if so tll which month has the same been certfed. If not, provide details of the Sofex and reasons for pendency. N.A. (i) Whether unit has fled any request for Cancellaton of Sofex N.A. (j) 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) N.A. (k) SO to verify and certfy whether the unit has updated the BLUT ledger Module in SEZ Online. The unit has not updated the BLUT ledger Module in SEZ Online. (i) Has the unit cleared any Capital Goods procured duty free in DTA against payment of

I/4097/2024 22

Duty, or otherwise. Full details to be provided along with value of assets and duty discharged Year Ass value In Rs Duty paid in Rs 19-20 21612 3890 20-21 310170 55831 (j) Is the unit sharing any of their infrastructure with other units or are utlizing 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 ofce, the date of UAC / Approval leter to be indicated No (k) Whether all DSPF for services procured during the said monitoring period under consideraton has been fled by the unit and whether the same has been processed for approval by the SO Ofce. Not fled DSPF for services procured online (NSDL) despite repeated request and reminders on the pretext that the NSDL rates are very high. However the unit has started fling DSPF for the service procurements received from January 2024 onwards. (l) Whether unit has fled all DTA procurement w.r.t. the goods procured by them during the monitoring period for the relevant period. If no, details thereof Not fled DTA procurement w.r.t. the goods online (NSDL) despite repeated request and reminders on the pretext that the NSDL rates are very high. (m ) Details of the request IDs pending for OOC in respect of DTA procurement on the date of submission of monitoring report Nil (n) Has the unit set up any cafeteria / canteen / food court in unit premises. If yes, whether permission from UAC / DC ofce has been issued, or otherwise ofce has been issued, or otherwise No (o) Whether any violaton of any of the provisions of law has been notced / observed by the No I/4097/2024 23

Specifed Ofcer during the period under monitoring.

RECONCILATION SHEET (Amt in Lakhs) Particulars 19-20 Difference Remarks Customs record data APR Data Direct Imports 2659.02 2539.22 119.80AS per Sheet A IUT IN 48.52 48.52 0.00 Intra IN 926.73 926.73 0.00 Total 3634.27 3514.47

IUT out- 799.96 0.00 799.96Not considered in APR Intra out 222.44 222.44 0.00 EOU (out) 214.08 218.33 -4.25 BOE No 2000435 dated 14.05.2019
not reflected in NSDL Total 1236.48 440.77

Total Imports 2397.79 3073.70 -675.91

Particulars 20-21 Difference Remarks Customs record data APR Data Direct Imports 9045.95 8749.49 296.46As per Sheet A IUT IN 518.59 518.59 0.00 Intra IN 603.13 603.13 0.00 Total 10167.67 9871.21

IUT out- 1724.05 1724.05 0.00 Intra out 2281.30 2281.30 0.00 EOU (out) 29.17 29.17 0.00 Total 4034.52 4034.52

Total Imports 6133.15 5836.69 296.46

Particulars 21-22 Difference Remarks Customs record data APR Data Direct Imports 4168.75 4196.60 -27.85As per Sheet A IUT IN 875.77 850.68 25.09 Not reflected in APR Intra IN 4406 4406 0.00 Total 9450.52 9453.28

I/4097/2024 24

IUT out- 2527.66 2527.66 0.00 Intra out 2188.21 2188.21 0.00 EOU (out) 37.21 37.21 0.00 Total 4753.08 4753.08

Total Imports 4697.44 4700.20 -2.76

Particulars 22-23 Difference Remarks Customs record data APR Data Direct Imports 4562.79 4756.28 -193.49Sheet A IUT IN 2521.87 2521.87 0.00 Intra IN 3857.2 3857.2 0.00 Total 10941.86 11135.35

IUT out- 419.80 419.80 0.00 Intra out 3479.97 3479.97 0.00 EOU (out) 0.00 0.00 0.00 Total 3899.77 3899.77

Total Imports 7042.09 7235.58 -193.49

Particulars 23-24 Difference Remarks Customs record data APR Data Direct Imports 2873.93 2853.36 20.57Sheet A IUT IN 1556.48 1556.48 0.00 Intra IN 3018.00 3018.00 0.00 Total 7448.41 7427.84

IUT out- 492.76 492.76 0.00 Intra out 694.59 694.59 0.00 EOU (out) 0.00 0.00 0.00 Total 1187.35 1187.35

Total Imports 6261.06 6240.49 20.57

SHEET A 19-20 Particulars Amt in lakhs Particulars Amt in lakhs Imports As NSDL records 2659.02Imports As per APR 2539.22

(less)considered on Ass value -12.82

DTA Unit-Loan/Lease basis reflected in NSDL 132.62 I/4097/2024 25

but not considered in APR

2659.02 2659.02 20-21 Imports As NSDL records 9045.95As per APR 8749.49 (-) reflected in APR 21- 22 -228.5Add NSDL figs Not reflected in APR 80.09

(less) considered on Ass value -12.13

8817.45 8817.45

21-22 Imports As NSDL records 4168.75As per APR 4196.6 (Add)NOT reflected in APR 20-21 228.5Add NSDL figs Not reflected in APR 50.73 less reflected in APR 22-23 -194.67less imports considered on Ass value -44.75

4202.58 4202.58 22-23 Imports As NSDL records 4562.79As per APR 4756.28 Add Not reflected in APR 21-22 194.67Add NSDL figs Not relected in APR 1.36

less imports considered on Ass value -0.18

4757.46 4757.46 23-24 (upto Sep 23) Imports As NSDL records 2873.93As per APR 2853.37 Add Not reflected in APR 21-22 1.36Add NSDL figs Not reflected in APR 29.06

less imports considered on Ass value -7.14

2875.29 2875.29

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. 1087.23 Crores as against projected export of Rs. 256.80 Crores and achieved cumulative NFE of Rs. 64.65 Crores which is 5.95% in 5 years of 3rd Block Period i.e. during FY 2019-20 to 2023-24 (upto Sept., 2023) • The unit has achieved Employment of 180 employees (Men – 167, Women – 13) as on 30.09.2023. • Approval Committee may like to monitor the performance of the Unit for FY 2019-20 to 2023-24(Upto Sept., 2023) (5 years of 3rd Block period). I/4097/2024 26