Agenda of 40th BOA meeting 8th June, 2010

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Agenda for the 40th meeting of the Board of Approval to be held on 8th June 2010
at 10.30 AM in the Room No. 47, Udyog Bhawan

Item No. 40.1: Guidelines on establishing contiguity in Special Economic Zone

Requests are received from time to time for consideration of BoA to relax the contiguity in respect of SEZs. In the BoA meeting held on 9th April 2010, a similar in respect of Khed multi-product SEZ, Maharashtra came up for consideration of the BoA. BoA took a view that guidelines in this regard need to be formulated to deal with such requests. Accordingly, draft guidelines dealing with the establishing contiguity in Special Economic Zone are placed at Annexure – 1 for consideration of BoA.

Item No. 40.2: Reimbursement of duty in lieu of drawback for supplies to Private SEZ Developers/Units In terms of Rule 24(1)(a) of the SEZ Rules 2006, the drawback claims of the SEZ Developer/ units are to be processed in the Customs Section of the SEZ and the Specified Officer is the disbursing authority for the said claims.

The Specified Officers of the Central Government SEZ have been delegated the requisite powers by Principal Chief Controller of Accounts, Central Board of Excise & Customs, Ministry of Finance for issuance of cheques for disbursing the claims, in terms of CBEC Circular no. 43/2007-Cus., dated 5.12.2007 (Department of Revenue F. No. 602/2/2002-DBK)

However, similar powers have not been delegated by the CBEC to the Specified Officer of the private SEZs. The Specified Officers of the Private SEZs do not have any cheque drawing powers for disbursing the drawback claims due to which the SEZ Developers/Units are unable to file drawback claim with the Specified Officer.

The matter is placed before the Board to advise the CBEC to give the cheque drawing powers to the Specified Officers of the Private SEZs to enable them to process the drawback claims of SEZ Developers/Units in line with the provisions of the SEZ Rules.

Item No. 40.3: Policy for setting up of units for recycling of plastics in SEZs

In the last BoA meeting the Board directed that the policy should be finalized at the earliest. Accordingly, a draft policy has been prepared and placed at Annexure – 2 for consideration by BoA. (Annexure – 2 will be circulated separately)

Item No. 40.4: Requests for transfer of unit from one SEZ to another SEZ

References have been received from some units requesting for the shifting of location from one SEZ to another SEZ. There is no specific provision for transfer of a unit from one SEZ to another SEZ in the SEZ Rules. However, with more SEZs becoming operational such requests may come up frequently, in view of business requirements, operational difficulties and cost considerations. In such transfer cases, there could be three possibilities:

(i) The unit has not commenced any activity;

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(ii) The unit has started import/procurement of goods, but not started exports or commenced production; and (iii) The unit has commenced production and started exporting.

It is for consideration of the Board of Approval for permitting such shifting of location from one SEZ to another SEZ by the Approval Committee with the conditions to be prescribed by the Approval Committee. In case the Development Commissioner and Approval Committee are different for the SEZs, first approval for shifting out may be taken from the Approval Committee of the SEZ where the unit is located and then from the Approval Committee of the SEZ to which the unit is re-location. In the situations at (ii) & (iii) issues regarding duty benefits and fiscal concessions availed may also need to be addressed.

Item No. 40.5: Request of M/s. TRIL Infopark Limited for authorized operations in the IT/ITES SEZ at Taramani, Chennai, Tamil Nadu

The SEZ was notified on 23rd January 2009 over an area of 10.24.225 hectares. The request of M/s. TRIL Infopark Limited for carrying out the under mentioned authorized operations in the non-processing area was considered by BoA in its meeting held on 11th February 2010:-

The Board, after deliberations, had deferred the proposal and had directed Joint Secretary (SEZ) to visit the site and submit a report for the consideration of BoA. An inspection has since been carried out as per the directions of the Board of Approval and a report on the above proposal of M/s. TRIL Infopark Limited is at Annexure - 3. In view of this the proposal is placed before BoA for consideration.

Item No. 40.6: Request of M/s. DLF Limited for rescinding this Departments notification dated 23rd February 2010 de-notifying the sector specific SEZ for IT/ITES at Action Area – II, New Kolkata Township, Rajarhat, Kolkata

Sector specific SEZ for IT/ITES at Rajarhat, Kolkata by M/s. DLF Limited was notified on 23rd June 2008 over an area of 10.4813 hectares. The developer had earlier sought approval for de-notification of the SEZ which was considered and approved by the BoA in its meeting held on 2nd June 2009. Therefore, the SEZ was de-notified on 23rd February 2010. Now, the developer has requested for rescinding the notification de-notifying the SEZ stating that the demand for IT/ITES leasing space in India is also showing signs of improvement. Further the Hon’ble Finance Minister in his Union Budget Speech 2010 has re-iterated the Government’s commitment to ensuring continued growth of SEZ to draw investments and boost exports and employment. A detailed justification furnished by the developer is at Annexure - 4. The request of the developer for re-notification is placed before BoA for consideration.

S. No Authorized Operations
Area (in sq mtrs) 1 Integrated Convention Centre (1500 seater) including Hotel (300 rooms) 28126

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Item No. 40.7: Proposals for setting up of SEZs

S. No Name of the Developer Location
Sector Area (in ha) Land Possession
SGR* Status of application i. M/s. Drugs & Pharmaceuticals Manufacturers Association Nakkapalli Mandal, Visakhapatnam District, Andhra Pradesh
Pharmaceu- ticals- bulk/APIs/for- mulations 120 No Yes New ii Kerala State Information Technology Infrastructure Limited Nellikode & Pandeerakavu village, Kozhikkode District, Kerala IT/ITES 10.121 Yes Yes New iii M/s. Sealand Ports Private Limited Villages – Layaja, Ratadiya, Godhra, Bayath & Undoth, Taluka- Mandvi, District-Kutch, Gujarat Multi Product 1112 Partial (590 Ha) Yes New iv M/s. Avash Logistic Park Private Limited Villages- Mota Layaja, Godhara & Bayath, Taluka- Mandvi, District –Kutch, Gujarat FTWZ 580 Partial ( 496 Ha) No New v M/s. Hindalco Industries Limited Bargwan, District Singroli (Formerly District Sidhi), Madhya Pradesh Aluminium sector 2025
Partial (111.89 Ha) Yes New vi M/s Larsen & Toubro Limited KIADB Industrial Area, Hebbal – Hootagally, Mysore, Karnataka IT/ITES 10 Yes Yes Deferred in the BoA meeting held on 09.04.10. The developer has since
furnished the information/under- taking, sought by the BoA (Annexure -5)
*State Government’s Recommendation

Item No.40.8: Requests for co-developers

(i) Request of M/s. Espire Infoserve Private Limited for co-developer in the sector specific SEZ for IT/ITES at 12/1, Sector-27D, Industrial Area, Mathura Road, Faridabad, Haryana, being developed by M/s. Espire Infrastructure Corporation Limited (Item No. 39.3 of the Supplementary Agenda of the 39th BoA Meeting)

Sector specific SEZ for IT/ITES at Faridabad, Haryana, being developed by M/s. Espire Infrastructure Corporation Limited was notified on 26th August 2009, over an area of 10.404 hectares. M/s. Espire Infoserve Private Limited, a 100% subsidiary of the developer company, has submitted a proposal for becoming a co-developer for developing & constructing IT buildings in the above SEZ. Co-developer agreement dated 20th September, 2009 between the developer and co-developer has been provided. The request of the co- developer is submitted for consideration of BoA.

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(ii) Request of M/s. E Centric Solutions Private Limited for co-developer in the sector specific SEZ for IT/ITES at Madhurwada, Andhra Pradesh, being developed by Andhra Pradesh Industrial Infrastructure Corporation (APIIC)

Sector specific SEZ for IT/ITES at Madhurwada, Andhra Pradesh being developed by Andhra Pradesh Industrial Infrastructure Corporation was notified on 28th December 2006 over an area of 36 hectares. M/s. E Centric Solutions Private Limited has submitted a proposal for becoming a co-developer in the aforesaid SEZ for development of complete infrastructure like power, water, sewerage, greenery and other common facilities over an area of 2.0234 hectares (5 acre). Co-developer agreement dated 8th February 2010 entered into with the developer has also been provided. The request of the co-developer is submitted for consideration of BoA.

(iii) Request of M/s. Prime Electric Limited for co-developer in the multi product SEZ at Naidupet and Pellakuru Mandals, Nellore District, Andhra Pradesh, being developed by Andhra Pradesh Industrial Infrastructure Corporation (APIIC)

Multi Product SEZ at Nellore District, Andhra Pradesh being developed by Andhra Pradesh Industrial Infrastructure Corporation was notified on 16th February 2009 over an area of 1032.27 hectares. M/s. Prime Electric Limited has submitted a proposal for becoming a co- developer in the aforesaid SEZ for development of complete infrastructure over an area of 40.47 hectares (100 acres). Co-developer agreement dated 22nd April 2010 entered into with the developer has also been provided. The request of the co-developer is submitted for consideration of BoA.

(iv) Request of M/s. Three C Facility Management Private Limited for co-developer in the sector specific SEZ for IT/ITES at Plot No. 7, Sector 144, Noida, Uttar Pradesh, being developed by M/s. Aachvis Softech Private Limited

Sector specific SEZ for IT/ITES at Plot No. 7, Sector 144, Noida, Uttar Pradesh, being developed by M/s. Aachvis Softech Private Limited was notified on 15th May 2008, over an area of 10.0498 hectares. M/s. Three C Facility Management Private Limited has submitted a proposal for becoming a co-developer in the aforesaid SEZ for operation and maintenance of equipment, services and common areas of the SEZ. The proposal was deferred in the meeting of the BoA held on 9th April 2010 as the representative of the Department of Revenue (CBDT) desired further clarifications. M/s. Aachvis Softech Private Limited vide letter dated 11th May 2010 (Annexure - 6) has given the details of the infrastructure facilities to be provided by the M/s. Three C Facility Management Private Limited and has requested for grant of co-developer status to the company. The request of the co-developer is re-submitted for consideration of BoA.

(v) Request of M/s. Hind Terminals (Mundra) Private Limited for co-developer in the multi product SEZ at Mundra, Kutch, Gujarat, developed by M/s. Mundra Port and Special Economic Zone Limited

The above multi product SEZ is notified over an area of 6472.8684 hectares. M/s. Hind Terminals (Mundra) Private Limited has requested for becoming a co-developer for developing and operating a Container Freight Station and Warehousing Facilities on an area of 16.19 hectares. The request was considered in the meeting of BoA held on 11.2.2010. The minutes of the meeting are reproduced below:

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“The representative of CBEC indicated that there are already 10 CFSs in the SEZ. The justification for another CFS is on account of increased cargo activity for DTA cargo and not SEZ cargo. Another CFS for DTA cargo may not be required. It was pointed out that it was a very large SEZ and there will be a considerable buildup up SEZ cargo. Further Mundra Port will be adding to its container handling capacity in the next couple of years necessitating creation of additional CFS capacity. After deliberations, the Board decided the assessment of cargo likely to be available will be made and the proposal can be examined on file”.

Accordingly, DC, Mundra Port SEZ, in consultation with the stake holders and from the data reported in the website of JNPT, has undertaken a detailed assessment of cargo likely available for handling by the proposed CFS in addition to the existing 10 CFS, and has submitted a report vide letter dated 9th March 2010 (Annexure - 7).

A meeting on the issue was also held on 10th May 2010 under the Chairmanship of Shri D.K. Mittal, Additional Secretary, the minutes of which are at Annexure - 8.

The request of M/s. Hind Terminals (Mundra) Private Limited is placed before BoA for consideration.

(vi) Request of M/s. Leela Lace Holdings Private Limited for co-developer in the sector specific SEZ for IT/ITES at Pajeeru-Kairangala, Mangalore, Karnataka, developed by Karnataka Industrial Areas Development Board (KIADB)

The above mentioned SEZ was notified on 24th August 2009 over an area of 65.571 hectares. M/s. Leela Lace Holdings Private Limited has requested for becoming a co- developer for providing IT/ITES infrastructure over an area of 6.88 hectares. The request was considered in the meeting of BoA held on 11.2.2010. The minutes of the meeting are reproduced below:

“The representative of CBDT said that the land was leased by KIADB to M/s. Leela Lace Holdings Private Limited in 2007 for setting up a Unit in the SEZ. The alienation of land by KIADB would also be subject to certain conditions of constructing the project in a limited time period. Since M/s Leela Lace Holdings Private Limited was leased land as a unit, they should not be approved as a Co-developer. The representative of the State Government indicated that M/s Leela Lace Holdings Private Limited has not been allocated land as a unit. Hence, the contention of CBDT is not correct. It was thereafter decided that the proposal will be examined on file.”

M/s. Leela Lace Holdings Private Limited has now stated that in the Clause 8 of Lease Deed executed on 5.11.2007 does stipulate that the Lessee (Leela Lace Holdings Private Limited) shall use the property only for the purpose of setting up a unit. However, subsequently Clause (d) of the Co-developer Agreement dated 9.11.2009 specifically grants the Lessee the rights to develop the property leased as a Co-Developer. The Co-Developer Agreement being a subsequent document, the Lessor has by this document granted the rights to the Lessee to develop the Property as Co-developer. M/s. Leela Lace Holdings Private Limited has, therefore, requested for reconsideration of their request for co-developer. DC CSEZ has recommended the request of M/s Leela Lace Holdings Private Limited.

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In view of the above position the request of M/s. Leela Lace Holdings is placed before BoA for consideration

(vii) Request of M/s. Indiabulls Infrastructure Company Limited for co-developer in the multi product SEZ at villages Musalgaon and Gulvanch, Taluka Sinnar, District Nasik, Maharashtra being developed by M/s. Indiabulls Industrial Infrastructure Limited

Multi product SEZ at Nasik, Maharashtra being developed by M/s. Indiabulls Industrial Infrastructure Limited was notified on an area of 1006.96, on 27th October 2009. M/s. Indiabulls Infrastructure Company Limited has submitted a proposal for co-developer in the aforesaid SEZ for developing various infrastructure facilities and related activities. A co- developer agreement dated 22nd May 2010 between the developer and co-developer has been provided. The request of the co-developer is submitted for consideration of BoA.

Item No. 40.9: Request of M/s. Suyog Realtors Pvt. Ltd. for authorized operations in the IT/ITES SEZ at Nagpur, Maharashtra

In the BoA meeting held on 9th April 2010 the BoA had tentatively approved certain authorized operations, in the non-processing area, as given in the table. The BoA had also directed DC, SEEPZ, to give a final report keeping in view the FAR etc. regarding the quantum that can be approved, thereafter; the formal approval can be issued. DC SEEPZ has since furnished a report. DC has stated that as per Instruction No.30, 60% of the FAR is allowed as residential apartments for a non-processing area. The norms prescribed in the Instruction is relating to the minimum area envisaged for an IT/ITES SEZ. In the present case, the notified area of the SEZ is 17.1890 hectares and the processing area is 60% and non-processing area is 40%. The Projected constructed space in the processing area is approximately 1,04,000 sq. mtrs. and in non- processing area is 67,000 sq. mtrs. 60% of the same works out to 40,200 sq. mtrs. The total requirement of housing and residential apartment (Type –A, B & C) indicated by them is 49,484.05 sqm. However, SEEPZ Administration had recommended construction of residential accommodation to the extent of 38,484.05 sqm which is within the permissible norms of 40,200 sqm as mentioned above. The BOA its meeting held on 9th April, 2010 granted tentative approval for housing and residential apartments to the extent of 24,742 sq. mtrs. which is within the permissible limit of 40,200 sqm mentioned above. The remaining 15,458 sqm can be considered subsequently depending upon the level of activities generated in the processing area. The detail of entitlement as per the report of the DC is as under:-

Sr. No. Authorized Operations

Quantum requested for ( sq. mtrs.) Total Entitlement (in Sq. mtrs.) Tentative Permission granted by BOA (Sq.mtrs.)
Additional permission Sought ( sq. mtrs.) 1 Housing and residential apartment : Type A consisting of 10 Towers with total 420 Dwelling units 22260 11130 N/A 2 Housing and Residential Apartment : Type B consisting of 1 Tower with total 42 Dwelling units 2013.55 1007 N/A 3 Housing and Residential Apartments : Type C consisting of 15 Towers with total 420 Dwelling units 25210.50 40,000 (total entitlement in NPA) 12605 Not applicable

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DC has recommended that the request of the developer for the construction of residential apartment (Type A, B, & C) may be considered as tentatively approved by the BOA is in its meeting held on 9th April, 2010. The remaining 14,458 sqm can be considered depending upon the level of activity generated in the processing area.

The report of the DC is placed before the BoA for information/directions.

Item No. 40.10: Request of M/s Mayar Infrastructure Development Pvt. Ltd. for construction of hotel in place Guest House/Service Apartments, in the sector specific SEZ for Biotechnology at Gurgaon, Haryana

Sector specific SEZ for Biotechnology SEZ at Gurgaon, Haryana developed by M/s. Mayar Infrastructure Development Pvt. Ltd. stands notified on the total area of the SEZ as 15.0877 hectares. The BoA in its meeting held on 11th February 2010 had granted approval for carrying out the following authorized operations in the non-processing area:-

S. No Authorized Operations Quantum requested (in sqm) Quantum Approved (in sqm) 1. Guest House/Service Apartments
37000
10000 sqm or 55% of the floor space in the non-processing area, keeping 100% as FAR, whichever is less.

It may be mentioned that the developer had requested for hotel over an area of 37000 sqm. However, the BoA granted approval only for Guest House/Service Apartments in place of hotel. The developer vide his application dated 13th April 2010, has represented indicating that the SEZ will have all in-campus facility for the industrial units to be established for bio- tech products and services. Accordingly, they have indicated that apart from working and convenience facilities, they would also like to have world class off work stay facility in the form of a biotech SEZ hotel that meets all standards which the global players in industry anticipate and need. Further, the work in the processing zone in the biotechnology runs on 24x7 mode since discussion, meetings and business interactions have to continue beyond work in early and late hours of the day. This working ambience is feasible only when on- work and off-work platforms are in the same campus and therefore, the proposed hotel facility is essential without which the proposed bio-tech SEZ cannot be practically feasible.

DC has recommended the request of the developer (Annexure -9).The request of the developer for construction of a hotel in place of Guest House/Service Apartments is placed before BoA for consideration.

Item No. 40.11: Request of M/s DLF Cyber City Developers Limited for authorized operations in the IT/ITES SEZ at DLF Cyber City District, Gurgaon, Haryana

IT/ITES SEZ at DLF Cyber City District, Gurgaon, Haryana by M/s DLF Cyber City Developers Limited was notified on 13.4.2007 over an area of 10.73 hectares. The developer had requested for following authorized operations in the non-processing area:-

S. No Authorized Operations
Area (in sq. meters) 1. Commercial Complex/Office space 32000

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The above request was considered in the BoA meeting held on 15th December 2009. However, the approval was granted only for an area of 15000 sqm. Thereafter, the developer had given a detailed justification for approval of an area of 32000 sqm instead of 15000 sqm. The request of the developer was considered by BoA in its meeting held on 9th April 2010, the minutes of which are reproduced below:-

“The BoA noted that in terms of the FAR, the maximum that can be permitted to the SEZ is 16000 sqm. Accordingly, it was decided by the Board not to approve the proposal of the developer for an area of 32000 sqm. of commercial complex/office space.”

Now, the developer once again requested for approval of an area of 32000 sqm. as against 15000 sqm approved by the BoA. It has inter-alia been stated that in the State of Haryana the FAR allowed for Commercial/Office Space is 1.75 for non-processing area and as per permissible norms the overall allowable area for construction is 37,861 sqm far below the quantum requested. The detailed justification by the developer is at Annexure – 10. The comments of DC, IT/ITES are Annexure - 11. The request of the developer is placed before BoA for consideration.

Item No. 40.12: Request of M/s. CCCL Infrastructure Limited for setting up of Food Testing Laboratory in the sector specific SEZ for Food Processing at Tuticorin District, Tamil Nadu.

Food Processing SEZ at Tuticorin, Tamil Nadu by M/s. CCCL Infrastructure Limited was notified on 23.04.2009 over an area of 119.145 ha. The developer has requested for setting up of Food Testing Laboratory as common infrastructure facility in the SEZ.

The developer has requested for the above facility in view of the fact that the SEZ is coming up near the Tuticorin Port where no such facility is available. Also given the global stringent standards being enforced by various countries in view of “food safety”, the facility becomes all the more important. Further, the developer intends to create the above facility of international standards as a “common infrastructure facility” since a food testing lab creation is a very costly affair. It has also been stated that such a facility will need lot of investment and at the same time the usage for the same at the SEZ would be low to begin with and increase only over a period of time as more units come up inside. However, there would be a lot of latent demand for this type of facility in the region itself since there are lots of food units of various types plus there are regular quarantine related testing to be done for the imports at the Port also.

The developer has, therefore, requested for permission so that units in the DTA can also avail of the facility as this would help overall exports from the region. It has also been mentioned that there is no case for return of products that come for testing since these would be used by the Lab facility and subsequently destroyed. There is no physical return of the product and only the “test report or certificate” is issued. Thus, in order to be commercially sustainable and viable, the facility would need to depend upon DTA business also.

It has been stated that currently discussions with some of the leading testing agencies like SGS, TUV-SUD etc for creating this facility in the SEZ are underway and the same would be implemented through a “SPV” where in the agency will also be a “co-developer” of the facility.

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The developer has stated that the company is willing to have a “dual pricing” policy for those units inside the SEZ itself and for those coming from the DTA. In essence the dual policy will entail the following:-

a) No IT benefits for the revenues coming from the DTA testing shall be claimed. b) service Tax charges as prescribed shall be levied for the testing done for DTA units.

The comments of DC, MEPZ on the above mentioned request of M/s CCCL Infrastructure Limited are at Annexure - 12.

The request of the developer is placed before BoA for consideration.

Item No. 40.13: Request of M/s. NSL SEZ (Hyderabad) Private Limited for waiver of the condition of exclusive use of residential apartments by SEZ employees

Sector specific SEZ for IT/ITES SEZ at IDA Uppal Industrial Development Area, Hyderabad, Andhra Pradesh being developed by M/s. NSL SEZ (Hyderabad) Private Limited was notified on 18th May 2007 on an area of 14.50 hectares. The developer was granted approval for carrying out the following authorized operations, in the BoA meeting held on 1st August, 2008, in the non-processing area, subject to the condition that the facilities will be for exclusive use of the SEZ employees :-

S. No. Authorised operations Area (in sq. meters) 1.
Residential Apartments 1250 units on a total area of 200000 sqm 2.
Service Apartments
250 units with a total built up area of 15000 sqm 3.
Business centre 5000 4.
Retail 10000 5.
Club Gym etc. 5000 6.
Food courts 5000 7.
Commercial 5000 8.
Entertainment (parks etc.) 10000 (Open space only. No multiplex is allowed)

In the 38th BoA meeting held on 11th February 2010, the following requests of the developer were considered by the BoA:-

(a) surrender of the approval mentioned above for the authorized operations except for residential apartments in favour of M/s Topnotch Projects Private Limited an approved co-developer in the SEZ; and
(b) waiver of the condition of exclusive use of residential apartments by SEZ employees

While the request at (a) above was approved by the BoA, the request at (b) above was not agreed to by the BoA.

The developer has once again requested for re-consideration of their request mentioned at (b) above. The developer has stated that there are some issues/concerns in fulfilling the condition of exclusive use for the SEZ employees as residential apartments shall be used by both the employees of the SEZ and also their relatives, guests and third parties and

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that such people will not be SEZ employees. Moreover the non-processing area is non- bonded area which is frequently visited and used by the non-employee outsiders and it will be impractical and impossible to monitor or keep a check that the residential apartments are used only by the SEZ employees. There is no mention in the minutes of the BoA, held on 1st August 2008, which granted approval for carrying out the authorized operations, regarding the condition of exclusive use of the facilities by the SEZ employees. The conditions regarding exclusive use of service apartments and parking facilities by the SEZ employees has been waived in the case of M/s. Information Technology Park Limited (Annexure - 13).

In view of the above position the request of the developer is placed before BoA for consideration.

Item No. 40.14: Requests for withdrawal of formal approval

(i) Withdrawal of formal approval granted to M/s. Shantiniketan Infrastructure Private Limited for setting up of sector specific SEZ for Information Technology (IT) at Bolpur, Shantikiketan, West Bengal

M/s. Shantiniketan Infrastructure Private Limited was granted formal approval for setting up of sector specific SEZ for Information Technology (IT) at Bolpur, Shantikiketan, West Bengal, over an area of 80.334 hectares, vide LoA dated 26th July 2007. Now, the developer has requested for withdrawal of formal approval stating that the company is not interested in setting up the SEZ. Further the company has also surrendered the land to the West Bengal Industrial Infrastructure Development Corporation. The request of the developer is placed for consideration of BoA.

(ii) Withdrawal of formal approval granted to M/s. Larsen & Toubro Limited for setting up of sector specific SEZ for IT/ITES at Powai, Mumbai, Maharashtra

M/s. Larsen & Toubro Limited was granted formal approval for setting up of sector specific SEZ for IT/ITES at Powai, Mumbai, Maharashtra, over an area of 10 hectares, vide LoA dated 18th June 2009. Now, the developer has submitted that due to changed business environment for the IT business, which is fall out of global recession, and also due to uncertainty in tax provisions under Direct Tax Code and Goods & Service Tax regulations, it has been decided to make these investments in the DTA. The developer has, therefore, requested for withdrawal of formal approval granted for setting up of the above mentioned SEZ.

The request of the developer is placed for consideration of BoA.

(iii) Withdrawal of formal approval granted to M/s. Gulf Oil Corporation Limited for setting up of sector specific SEZ for IT/ITES/BPO/Electronic Hardware at Kattigenahalli and Venkatala villages, Yelahanka Hobli, Bangalore, Karnataka

M/s. Gulf Oil Corporation Limited was granted formal approval for setting up of sector specific SEZ for IT/ITES/BPO/Electronic Hardware at Kattigenahalli and Venkatala villages, Yelahanka Hobli, Bangalore, Karnataka, over an area of 12 hectares, vide LoA dated 18th June 2009. Now, the developer has submitted that in view of the current market scenario and poor demand for space within SEZ, the company has decided to withdraw from setting up of the SEZ. Further, the company has decided to set up an integrated IT park in place of

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SEZ. The developer has, therefore, requested for withdrawal of formal approval granted for setting up of the above mentioned SEZ.

The request of the developer is placed for consideration of BoA.

Item No. 40.15: Requests for de-notification

(i) Request of M/s. NSL SEZ (Chennai) Private Limited for de-notification of the notified sector specific SEZ for IT/ITES at Sholinganallur, Tambaram Taluk, Kancheepuram District, Tamil Nadu

Sector specific SEZ for IT/ITES at Sholinganallur, Tambaram Taluk, Kancheepuram District, Tamil Nadu developed by M/s. NSL SEZ (Chennai) Private Limited was notified on 3rd May, 2007 over an area of 18.604 hectares. The developer has requested for de- notification of the SEZ.

It is mentioned that after the notification of the SEZ some local plot owners Association filed an application with the District Collector as well as in High Court of Madras. The case is still pending in the High Court. Meanwhile, the Association had also requested this Department for withdrawing the notification dated 3rd May 2007. It is also mentioned that in the BoA meeting held on 9th April 2010, the appeal of the Association for de-notification of the SEZ was considered along with the request of the developer for de- notification of the disputed portion of the SEZ and as well as addition of some portion of the land. The BoA had noted that since the title of the area is to be settled and this lay within the competence of the State Government, a clear recommendation must be obtained from the State Government and placed before BoA for its consideration. Accordingly, the BoA deferred the request of the developer for re-alignment of the SEZ and also directed that the developer should not carry out any activity on the land till a final decision is taken.

The developer has stated that by seeking de-notification of the disputed area an effort was made to resolve the issue, however, in view of the directions of BoA, the company is left with no option than to seek the de-notification of the SEZ.

The request of the developer for de-notification is placed before BoA for consideration.

(ii) Request of M/s. Bata India Limited for de-notification of the notified sector specific SEZ for IT at villages Jagtala and Bangla, District South 24 Parganas, West Bengal

Sector specific SEZ for IT at District South 24 Parganas, West Bengal developed by M/s. Bata India Limited was notified on 9th January, 2008 over an area of 10.1141908 hectares. Now, the developer has requested for de-notification of the SEZ due to slowdown in the industry. The developer has informed that there are no units operating out of this SEZ. The developer has also given an undertaking to refund all the benefits availed under SEZ Act and Rules.

The request of the developer for de-notification is placed before BoA for consideration.

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Item No. 40.16: Requests for increase/decrease in area

(i) Request of M/s. G.P. Realtors Private Limited for increase as well as decrease in area of the sector specific SEZ for IT/ITES at Village Behrampur, District Gurgaon, Haryana

Sector specific SEZ for IT/ITES at Village Behrampur, District Gurgaon, Haryana by M/s. G.P. Realtors Private Limited was notified on 4th May 2009 over an area of 18.86858 hectares. The developer has requested for addition and de-notification of an area of land admeasuring 4.88156 hectares and 2.16009 hectares respectively, making the area of the SEZ to 21.59005 hectares. The developer has sought de-notification in view of the complaint filed against a particular portion of SEZ land and pending Court’s order for the case filed against the SEZ land. The developer has stated that they have not availed any duty benefits/concessions. Further, no units are functioning in the SEZ. It has been stated that the land proposed to be added is in possession of the developer. Further the developer has stated that the land is vacant, contiguous and free from encumbrance.

The request of the developer for change in area of the SEZ is submitted for consideration of the BoA.

(ii) Request of M/s. Shriram Properties & Infrastructure Private Limited for de- notification of a portion of land in the notified sector specific SEZ for IT/ITES at Perungalathur village, Chennai, Tamil Nadu

Sector specific SEZ for IT/ITES at Perungalathur village, Chennai, Tamil Nadu being developed by M/s. Shriram Properties & Infrastructure Private Limited was notified on
28th September 2006 over an area of 10 hectares. Subsequently, an additional area admeasuring 13.40.88 hectares was notified on 24th September 2007 thereby making the total notified area of the SEZ as 23.40.88 hectares. Later an area of 7.75.78 hectares was de- notified on 9th November 2009. The developer has again requested to de-notify an area of 5.03.54 hectares thereby making total area of the SEZ as 10.61.56 hectares. The developer has stated that due to the current global economic slowdown especially IT/ITES industry there is no demand/takers from the IT/ITES industry. The DC has recommended the request of the developer and has also informed that the developer has not availed any duty/tax exemption for the area to be de-notified as no development activity has taken place in that area. The DC has also informed that after de-notification of the requested area, the balance notified area land would be contiguous and there is no public thoroughfare.

The request of the developer for de-notification of portion of land is placed before BoA for consideration.

(iii) Request of M/s. Apache SEZ Development India Private Limited for de- notification of a portion of land in the notified sector specific SEZ for Footwear at Mambattu village, Tada Mandal, Nellore District, Andhra Pradesh

Sector specific SEZ for Footwear at Mambattu village, Tada Mandal, Nellore District, Andhra Pradesh by M/s. Apache SEZ Development India Private Limited was notified on 8th August 2006 over an area of 126.90 hectares. The developer has requested for de-notification of 56.4 Acres (22.825 hectares) from the notified area, thereby making the total area of the SEZ as 257.17 Acres (104.0766 hectares). The developer has stated that the proposed de- notification is to bring the T2 suppliers of DTA unit to nearby their factory to support the

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units in the SEZ. The request of the developer for decrease in area is submitted for consideration of the Board of Approval.

(iv) Request of M/s. Neogen Properties Private Limited for de-notification of a portion of land in the notified sector specific SEZ for Apparel at Hindupur, Dist. Anantapur, Andhra Pradesh (deferred in the BoA meeting held on 9th April 2010)

Sector specific SEZ for Apparel at Hindupur, Dist. Anantapur, Andhra Pradesh being developed by M/s. Neogen Properties Private Limited was notified on 13th June 2007 over an area of 141.65 hectares. The developer has requested to de-notify an area of 40.80 hectares from the already notified area making size of the SEZ to 100.84 hectares. The request of the developer was listed in the agenda BoA meeting held on 9th April 2010 and was deferred on the request of Government of Andhra Pradesh. The Government of Andhra Pradesh has now conveyed there no objection to the proposed de-notification (Annexure - 14). In view of this the request of the developer for de-notification of portion of land is placed before BoA for consideration.

(v) Request of M/s Vivo Biotech Limited for addition of area in the sector specific SEZ for Biotechnology at Medak District, Andhra Pradesh

Sector specific SEZ for Biotechnology at Medak District, Andhra Pradesh by M/s. Vivo Biotech Limited was notified on 27th January 2009 over an area of 10.926512hectares. The developer has requested to add a part of land admeasuring 5.26091 hectares to the already notified SEZ, thereby making the total area of the SEZ as 16.18742 hectares. The land proposed to be added is in possession of the developer. The land is vacant, contiguous and free from encumbrance. The DC has carried out the site inspection and has recommended the request of the developer. The request of the developer for increase in area is submitted for consideration of the Board of Approval.

(vi) Request of M/s L&T Shipbuilding Limited for addition of area, in the sector specific SEZ for Heavy Engineering at Kattupalli village, Tiruvallur District, Tamil Nadu

Sector specific SEZ for Heavy Engineering at Kattupalli village, Tiruvallur District, Tamil Nadu by M/s. L&T Shipbuilding Limited was notified on
4th December 2009 over an area of 317.715 hectares. BoA in its meeting held on
11th February 2010 had granted approval for addition of an area of 108.03 hectares as under which is yet to be notified:-

S. No. Description of Area Area in hectares 1. Coastal land 25.05 2. Area for jetties in the water area 61.12 3. Area for Break Waters (BW) Northern BW Southern BW

10.93 10.93

Total 108.03

Now, the developer has requested for addition of land measuring 2.5 hectares to the notified area stating that the company would like to the SEZ further to set up

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shipbuilding facilities so that a shipyard can be established effectively in the SEZ.
The developer is in possession of the land. The land is also contiguous and free from encumbrance. DC, MEPZ, has recommended the request of the developer.

Item No. 40.17: Request for change of sector/broad-banding the sector

(i) Request of M/s. GMR Hyderabad International Airport Limited for change of sector of their formally approved SEZ at GMR Hyderabad International Airport, Shamshabad, Hyderabad from ‘Airport based Multi Product’ to ‘Multi Services’

M/s. GMR Hyderabad International Airport Limited was granted formal approval for setting up of Airport based Multi Product SEZ at GMR Hyderabad International Airport, Shamshabad, Hyderabad, vide LoA dated 25th June, 2007. The SEZ is yet to be notified. The developer has stated that the company intends to convert the existing approval for the airport based multi product SEZ into a multi services SEZ with an International Financial Services Centre, as the chosen location also has all the pre-requisites required for an International Financial Services Centre. The developer has therefore, requested for changing the sector from ‘Airport based Multi Product SEZ’ to ‘Multi Services with an International Financial Services Centre’. The request of the developer is placed for consideration of BoA.

(ii) Request of Gujarat Industrial Infrastructure Development Corporation for change of sector of notified SEZ at Ahmedabad, Gujarat from ‘Apparel’ to ‘Textiles & Articles of Textiles’

The above mentioned SEZ was notified on 10th April 2007 over an area of 38.04.13 hectares at Ahmedabad, Gujarat. The developer has requested for change of sector of the SEZ from ‘Apparel’ to ‘Textiles & Articles of Textiles’. The detailed justification given by the developer for changing the sector of the SEZ is at Annexure - 15. The request of the developer is placed for consideration of BoA.

Item No. 40.18: Requests for first extension of validity of formal approvals

(i) Request of M/s. Reliance Haryana SEZ Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for multi services at Gurgaon, Haryana, beyond 20th June 2010

(ii) Request of M/s. SNP Infrastructure Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Zamin Pallavaram, Chennai, Tamil Nadu, beyond 24th June 2010

(iii) Request of M/s. Uttam Galva Steels Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Khopoli, village Devnhave, Taluka Khalapur, District Raigad, Maharashtra, beyond 25th July 2010

(iv) Request of M/s. Nipiam Infotech Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Information Technology at Gram Nimeta, District Vadodara, Gujarat, beyond 25th July 2010

(v) Request of M/s. Biotor Industries Limited (formerly M/s. Jayant Oils & Derivatives Limited) for extension of the validity period of formal approval, granted for setting up of

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sector specific SEZ for Chemicals (Agro-based) at Village Vilayat, Tal. Vagra, District Bharuch, Gujarat, beyond 22nd May 2010

(vi) Request of M/s. Unitech Reality Projects Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Village Tikri, Gurgaon, Haryana, beyond 29th July 2010

(vii) Request of M/s. Unitech Infracon Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Greater Noida, Uttar Pradesh, beyond 22nd May 2010

(viii) Request of M/s. Navi Mumbai SEZ Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES - A at Ulwe, Navi Mumbai, Maharashtra, beyond 24th October 2010

(ix) Request of M/s. Navi Mumbai SEZ Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES - B at Ulwe, Navi Mumbai, Maharashtra, beyond 24th October 2010

(x) Request of M/s. Navi Mumbai SEZ Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES - C at Ulwe, Navi Mumbai, Maharashtra, beyond 21st November 2010

(xi) Request of M/s. Canton Buildwell Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Village Gwal Pahari, Tehsil – Sohna, District Gurgaon, Haryana, beyond 25th July 2010

(xii) Request of M/s. Foxconn India Developer Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/Electronic Hardware at Sriperumbudur, Tamil Nadu, beyond 25th July 2010

(xiii) Request of Tamilnadu Industrial Development Corporation Limited for extension of the validity period of formal approval, granted for setting up of multi product SEZ at Ennore, Tiruvallur District, Tamil Nadu, beyond 22nd July 2010

(xiv) Request of M/s. Kinfotech Software Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at KIADB Industrial Area, Mangalore Karnataka, beyond 29th July 2010.

(xv)
Request of M/s. Tata Consultancy Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Gandhinagar, Gujarat, beyond 16th December 2010.

(xvi) Request of M/s. B.A. Tech Park Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Mangalore, Karnataka, beyond 22nd May 2010.

(xvii) Request of M/s. Indiabulls Industrial Infrastructure Limited for extension of the validity period of formal approval, granted for setting up of Multi Product at Village Musalgoan and Gulvanch, Taluka Sinnar, District Nasik, Maharashtra, beyond
24th June 2010.

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(xviii) Request of M/s. Navayuga Legala Estates Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Serlingampally, Ranga Reddy District, Andhra Pradesh , beyond 18th June 2010.

(xix) Request of M/s. International Biotech Park for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Hinjewadi, Pune, Maharashtra, beyond 24th October 2009. The developer has made a delayed request for grant of first extension of the validity of the formal approval and has also requested for condoning the delay.

(xx) Request of M/s. Enfield Exports Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Non-convectional energy including solar energy equipment/cell at Udupi Kanksa, Panagarh, Dist. Burdwan, West Bengal, beyond 22nd August 2009. The developer has made a delayed request for grant of first extension of the validity of the formal approval. The Board may also consider condoning the delay.

Item No. 40.19: Requests for second extension of validity of formal approvals

(i) Request of M/s. Divyasree Infrastructure Projects Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Ballandur Amani Kane, Off Airport Road, Bangalore, Karnataka, beyond 25th October 2010

The developer was granted formal approval for setting up the above mentioned SEZ over an area of 19 hectares, vide LoA dated 26th October 2006. The SEZ is yet to be notified. The developer has been granted first extension of the formal approval, the validity of which is up to 25th October 2010. The developer has stated that due to the global recession, the company postponed its decision to fast track the project in the manner envisaged at the time of seeking approval for the project. The developer has further stated that, with the fiscal and monetary policies being significantly eased to stem the recession and financial risks and given the fact that the infrastructure situation is expected to improve in the near future, the company can now fast track its project. The developer has, therefore, requested for grant of second extension of the validity of formal approval.

(ii) Request of M/s. Bengal Shapoorji Developers Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at A-III, New Town, Rajarhat, Kolkata, beyond
22nd August 2010.

The developer was granted formal approval for setting up the above mentioned SEZ, over an area of 20 hectares, vide LoA dated 23rd August 2006. The SEZ was notified on
5th December 2007 over an area of 20.2345 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to 22nd August 2010. The developer has furnished the details of the progress made by the company in developing the SEZ and has also intimated an investment of Rs. 136.73 crores has been made for this project. The developer needs more time for competition of the project and has, therefore, requested for grant of second extension of the validity of formal approval.

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(iii) Request of M/s. Selecto Systems Private Limited (formerly M/s. Haryana Technology Park) for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Faridabad, Haryana, beyond 15th June 2010

over an area of 3 hectares, in the BoA meeting held on 17th March 2006. The approval was conveyed vide LoA dated 16th June 2006. The above mentioned SEZ was notified on 17th April 2007 over an area of 3.34 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to 15th June 2010. The developer has given the details of steps taken by the company towards implementation of the project. The developer has inter-alia intimated that the company is awaiting the clearance of Zoning & Master Plan from Haryana Government in order to submit building plans and then start construction master plan is yet to be approved by the Government of Haryana. The developer has stated that though the effective steps have been taken to implement the project, the company is not able to develop the project due to delays beyond its control. The developer has, therefore, requested for grant of second extension of the validity of formal approval.

(iv) Request of M/s. Luxor Cyber City Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Village Sikhopur, Tehsil Sohna, District Gurgaon, Haryana, beyond
6th April 2010

over an area of 28 hectares, vide LoA dated 7th April 2006. The SEZ was notified on
27th April 2007 over an area of 27.07845 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to 6th April 2010. The developer has stated that the company is not able to develop the project due to lack of regulatory support in getting the approvals & infrastructure from the State Government. The developer has, therefore, requested for grant of second extension of the validity of formal approval.

(v) Request of M/s. Claridges SEZ Developers Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Multi Services at Raigad District, Maharashtra, beyond 26th June 2010

over an area of 108 hectares, vide LoA dated 27th June 2006. The SEZ is yet to be notified. The developer has been granted first extension of the formal approval, the validity of which is up to 26th June 2010. The developer has inter-alia stated that the company was unable to obtain NOC from MIDC as a substantial part of the proposed SEZ land had appeared in a notification dated 08.06.2006 of the Government of Maharashtra for acquisition for MIDC. Further, due to the persistent efforts of the Government vide its notification dated 19.05.2009 has since removed the land from its acquisition list, thereby, enabling the company to take further necessary action. Further the company is in the process of the obtaining statutory approvals/certificate from the concerned Authorities of the Government of Maharashtra. In view of the above developer has requested for grant of second extension of the validity of formal approval.

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(vi) Request of M/s. Flagship Infrastructure Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware and Software including ITES at Village Hinjewadi, Taluka Mulshi, District Pune, Maharashtra, beyond 22nd August 2010

over an area of 28 hectares, vide LoA dated 23rd August 2006. Subsequently, on the request of the developer, the area was reduced to 12 hectares, vide LoA dated 27th November 2006. The said SEZ was notified on 3rd October 2007 over an area of 11.7943 hectares. Thereafter, the BoA had approved addition as well as de-notification of some portion of land in the SEZ. Therefore, presently the SEZ stands notified on an area of 10.1326 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to
22nd August 2010. The developer has stated that 130000 sqm of construction, out of total permissible limit of 160000 sqm, has already been carried out in the SEZ and the balance construction shall be completed within a year. The developer has, therefore, requested for grant of second extension of the validity of formal approval.

(vii) Request of M/s. Cognizant Technology Solutions India Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Siruseri, Kancheepuram District, Tamil Nadu, beyond 22nd August 2010

over an area of 11.52 hectares, vide LoA dated 22nd August 2006. The above mentioned SEZ was notified on 17th December 2007, over an area of 10.85 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to
22nd August 2010. The developer has stated that the construction activities have commenced from 14th April 2010 and they have proposed to construct 4 million sqft. The developer has further stated that the company has planned the constructions in two phases of 2 million sqft each. The developer has requested for second extension to complete the phase I construction activities i.e. construction of 2 million sqft consisting of SDB 1,2,3 canteen and MLCP. The request of the developer for grant of second extension of the validity of formal approval is placed before the BOA for consideration.

(viii) Request of M/s. NSL SEZ (Hyderabad) Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Uppal Hyderabad, Andhra Pradesh, beyond 30th October 2010

over an area of 11.735 hectares, vide LoA dated 31st October 2006. The above mentioned SEZ was notified on 18th May 2007, over an area of 14.50 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to
30th October 2010. The developer has stated that the company will not be able to complete the implementation due to (i) hard rock in the site which could not be excavated through blasting and was completed by manual chiselling, which has taken longer time (ii) delay in obtaining various statutory approvals for the project (iii) delay in obtaining the Finance from the Banks. The developer has also stated that a structure for a building with a built up space of more than 10 lakh sqft with 2 basements + stilt + 12 floors has already been completed. The developer needs some more time to complete the project and has, therefore, requested for grant of second extension of the validity of formal approval.

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(ix) Request of M/s. Vatika Jaipur SEZ Developers Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Jaipur, Rajasthan, beyond 15th June 2010

over an area of 20.23 hectares, vide LoA dated 16th June 2006. The above mentioned SEZ was notified on 12th December 2007, over an area of 20.1366 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to
15th June 2010. The developer has stated that the company has been pursuing the matter for seeking access from National Highway No. 8 for taking up implementation of the project. The company has got permission from the Ministry of Road Transport & Highways, for access from the service road. Presently the final approval and NOC from Chairman NHAI is awaited. The developer has stated that the Vatika Group is determined to go ahead with the construction of the SEZ. The developer has, therefore, requested for grant of second extension of the validity of formal approval.

(x) Request of M/s. Bajaj Holdings & Investment Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Engineering at Wajuj, Aurangabad, Maharashtra beyond 6th April 2010

over an area of 100 hectares, vide LoA dated 7th April 2006. The above mentioned SEZ was notified on 17th April 2007, over an area of 100.26 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to 6th April 2010. The developer has stated that the project and its implementation has got delayed due to (i) delay in initial approvals for starting the project work (ii) Demerger of the company, consequent internal organizational changes & delay in subsequent approvals to recognize the said changes (iii) Delay in market feedback for the layout and other specifications due to general economic & Financial slowdown in industry. The developer has, therefore, requested for grant of second extension of the validity of formal approval.

(xi) Request of M/s. Uppal Developers Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Multi Services at Gurgaon, Haryana, beyond 2nd April 2010

over an area of 106.31 hectares, vide LoA dated 3rd April 2006. The above mentioned SEZ was notified on 31st August 2006, over an area of 106.3101 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to 2nd April 2010. The developer has requested for grant of second extension stating that the company has not been able to develop the project due to lack to regulatory support in getting the approvals and infrastructure from the State Government. DC, NSEZ, has intimated that the developer has already invested Rs. 341 crores in the SEZ which includes Rs. 328 crores FDI. The request of the developer is placed before BoA for consideration.

(xii) Request of M/s. Bagmane Developers Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at KR Puram, Bangalore North, Karnataka, beyond 25th October 2010

over an area of 15.5 hectares, vide LoA dated 26th October, 2006. The developer has been

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granted first extension of the formal approval, the validity of which is up to
25th October, 2010. The developer has stated that due to global recession, the management had decided to keep further investment infusion on hold and adopt a wait and watch policy. However, as the fiscal and monetary policies has been significantly eased by the Government to stem the recession and financial risks and also on getting positive response from prospective units in IT/ITES sector, the management has decided to expedite the project. The developer has stated that the company is committed to develop the SEZ and needs time to complete the project. The developer has, therefore, requested for grant of second extension of the validity of formal approval.

Item No. 40.20: Requests for first extension of the validity period of co-developers

(i) Request of M/s. Nest Hi-Tek Park Private Limited, a co-developer in the sector specific SEZ for Electronics Industries developed by Kerala Industrial Infrastructure Development Corporation. (KINFRA) at Thrikkakara village, Kanayannur Taluk, Ernakulam District, Kerala, for extension of the validity of the LoA.

M/s. Nest Hi-Tek Park Private Limited was granted approval as a co-developer, in the above mentioned SEZ vide LoA dated 5th November 2007. As per the General condition no. (viii) of the LoA the validity of the approval is for three years i.e. upto 4th November, 2010. However, as per general condition no. (xvi) of the LoA the request of extension of the validity may be considered by the BoA on merits. The co-developer has stated that the project was delayed due to global economic slowdown. Further the company has initiated action to commence the first phase construction of the facilities in the park by June 2010 and to start initial commercial operation from March 2011 onwards. The co-developer needs more time to complete the project and has, therefore, requested for extension of the validity of the LoA.

Item No. 40.21: Request for 1st extension of the validity period of in-principle approval

(i) Request of M/s. Sigrun Megaprojects Private Limited for extension of the validity of in-principle approval of the sector specific SEZ for at Kandla, Gujarat

In-principle approval was granted to the proposal vide LoA dated 30th October, 2008 for development of the SEZ over an area of 100 hectares. The in-principle approval was valid up to 29th October 2009. The developer has requested for further extension of the validity of in-principle approval stating that the delay in seeking formal approval is due to difficulties being faced while acquiring the required land to start the SEZ project. The developer has made the request after the expiry of validity of the in-principle approval. The request of the developer is placed for consideration of BoA.

Item No. 40.22: Grant of second extension of in-principle approval.

S. No. Name of the Developer Sector and area Location of the SEZ Percentage of land in possession of developer as on expiry of validity of in-principle approval 1. M/s. Reliance Haryana SEZ Limited Multi Product, 5000 Ha Jhajjar District, Haryana In-principle approval was granted vide LoA dated 15th February 2008. The developer was granted first extension, which was valid upto 14th February 2010. The developer has requested for grant of second extension stating that they have already purchased 2800 hectares

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(7000 acres) of land. Further Government of Haryana has been requested to acquire approximately 345 hectares (849 acres) of land being the left out pockets to enable contiguity.

     In this case though developer has 

acquired more than 50% of the land, the request needs to be considered by the BoA as the developer had made the request for second extension of in-principle approval after the expiry of the validity of the first extension.
2. M/s. South Coast Infrastructure Development Company of Andhra Pradesh Limited (SCIDCAP) Building Materials, 118 Ha NH-5 between Prakasam and Nellore Districts, Andhra Pradesh In-principle approval was granted vide LoA dated 26th June 2008. The developer was granted first extension, which was valid upto 25th June 2010. The developer has requested for grant of second extension stating that they have already acquired 50% of the land and the balance land is at an advanced stage of acquisition and he zone.

     The request needs to be considered by the 

BoA as the developer has not acquired 60% of the land.

Item No. 40.23: Requests for extension of validity of LoP Plastic processing units

(i) Request of KASEZ for Renewal/Extension of Letter of Approval in respect of Plastics Recycling Units functioning at KASEZ, Gandhidham

There are 22 units engaged in re-processing of imported plastic waste/scrap in Kandla Special Economic Zone, Gandhidham. Earlier the requests of the units for an extension/renewal of their Letters of Approval, was considered by the Board and the Board after detailed deliberations on the subject decided to grant extension of these Letter of Approvals by another 5 years subject to the condition that all these units shall obtain all necessary Environmental clearances and their imports shall be strictly governed by the provisions of DGFT Public Notice No. 392/97 dated 01-01-1997. Accordingly, the validity in respect of the units engaged in re-processing of imported plastic waste/scrap was extended up to 31-10-2010. The DC has furnished the details of the units and their performance as per Annexure - 16.

DC, KASEZ has stated that some of the units have approached for an extension/renewal of their Letter of Approval for a further period of 5 years from the date of its expiry i.e. 31-10-2010.

Under sub-rule (4) of Rule 18 of SEZs Rules, 2006 the proposal for recycling of plastic scrap or waste shall be decided by the Board. Accordingly, the request of the units, as in Annexure – 16, engaged in re-processing of imported plastic waste/scrap for an extension/renewal of their LOAs for a further period of 5 years from the date of its expiry i.e. 31-10-2010 is placed before the Board for its consideration.

(ii) Renewal of LoP of M/s. Precision Polyplast Private Limited a unit in FSEZ

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M/s. Precision Polyplast Private Limited was granted permission on 18.12.1997 to set up a unit in Falta Special Economic Zone for manufacture and export of Plastic Flour with an annual capacity of 36000 MT. The unit had commenced production on 02.06.1998. On completion of the 1st block of five years of operation, the LoP was further renewed for five years with effect from 02.06.2003. Thereafter two extensions of one year each have been granted by BoA in its meetings held on 01.08.2008 and 19.06.2009. The last extension granted by the BoA of Approval is valid up to 1st June 2010.

The unit has requested for renewal of its LoP for a further period of three years being the remaining period in the 3rd block of its operation. The zone has given the Foreign Trade Performance of the unit from 2003-04 to 2007-08 as under:-

1. Exports

: Rs. 4568.82 lakhs 2. Import (total outflow)

: Rs. 4038.87 lakhs 3. NFE earnings

: Rs. 529.95 lakhs

It has been intimated by the zone that during the first two years of operation in the 3rd block of five years i.e. during 2008-09 (from June 08 to March 09) and during the financial year 2009-10 (from April 09 to March 10) the unit has made export worth Rs. 10.41 Crore and Rs. 27.69 Crores respectively [by DTA sale in EEFC A/c. in terms of Rule 53 A(n)]. Further, more than 1200 unskilled labourers have been working in this unit out of which above 60% workers are women labourers.

The DC has informed that the unit has submitted revised projections of foreign trade performance for the 3rd block five years w.e.f. 02.06.2008 as under:-

FOB value of exports 20448 Lakh 2. CIF value of imported C.G. Nil 3. CIF value of imported R.M. & Component 17280 Lakh 4. CIF value of imported spares & Consumables Nil 5. Repatriation of dividends Nil 6. Payment on training of Indian technicians Nil 7. Foreign travel 12 Lakh 8. Commission on exports Nil 9. Any other payments Nil 10. NFE earning 3108 Lakh

The request of the unit for renewal of its LoP for a further period of three years (from 02.06.2010 to 01.06.2013), being the remaining period in the 3rd block of its operation, is placed before the BoA for consideration.

(iii) Renewal of LoP for next 5 years in respect of M/s. Plastic Processors & Exporters Private Limited, a unit in NSEZ

M/s. Plastic Processors & Exporters Private Limited is holding LoP for for export production of plastic agglomerates/granules. The LoP of the unit was valid upto 31.3.2010.

NSEZ has informed that the unit completed first ten years of operation from NSEZ on 31.3.2008 and thereafter validity of LoA has been extended by BoA on yearly/half yearly basis from time to time in terms of Rule 18(4)(a) of SEZ Rules, 2006 and LoA was valid up

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to 31.3.2010. The projected exports, imports and NFE for next five years furnished by the unit are as under:-

Export during five years Rs. 21914.06 lakhs 2. Import of capital goods Nil 3. Import of raw material Rs. 15778.13 lakhs 4. Commissioner on Export Nil 5. Foreign Travel Rs. 25.00 lakhs 6. NFE earnings Rs. 6110.94 lakhs

The request of the unit for further extension of LoP upto for a period of w.e.f.
1st April 2010 is placed before the Board of Approval for consideration.

Item No. 40.24: Request of M/s. Renuka Agriventure Limited, for setting up a unit in MPSEZ, for warehousing and trading (import/export) of sugar/raw

DC, MPSEZ, has intimated that M/s. Renuka Agriventure Limited has proposed to set up a unit in the SEZ for warehousing and trading (import/export) of sugar/raw sugar. The applicant has proposed to import the raw sugar/sugar from foreign countries, and warehouse the same in the SEZ, and subsequently propose to export the same. DC has stated that a reference was made to Joint Director General of Foreign Trade, New Delhi seeking an opinion as to whether LoA can be granted to M/s. Renuka Agriventure Limited for trading of Sugar i.e., import and export excluding DTA procurement and DTA sales. DGFT has since clarified that at present import of sugar is free, and all sugar import contracts have to be registered with APEDA. Further that the export of sugar is free subject to the export licensing note, which inter-alia requires merchant importer/exporter to obtain export release order from the Chief Director (Sugar), Directorate of Sugar or any other officer authorized by the Chief Director (Sugar) and the proposed SEZ unit will fall in the category of merchant importer/exporter.

The proposal of M/s. Renuka Agriventure Limited was considered in Unit Approval Committee (UAC) and the Committee decided to refer the proposal to the BoA in terms of instruction no. 47 issued by this Department which provides that import/export of restricted/prohibited items is permissible in the SEZ subject to the approval of the BoA. Accordingly, the DC has requested that the proposal of M/s. Renuka Agriventure Limited may be placed before the BoA.

Item No. 40.25: Request of M/s. Maruti Exports for broad banding for granting permission to include worn/used recyclable products mix accessories i.e. belts, purses, backpacks, soft toys, hard toys

M/s. Maruti Exports, a unit in Kandla SEZ, was granted letter of permission for import of Worn/used/surplus shoes for re-exports on 30.7.1997. The unit started production on 1.9.99. The export turnover for the year 2005-06 was Rs.7.69 crores and Rs.15.25 crores in 2006-07. The company sought approval for ‘broad banding for service to overseas entity’.
The matter was considered in the meeting of BoA held on 22.09.2008 and it was decided to approve the request of M/s Maruti Exports for broad banding for ‘services to overseas entity’, subject to no DTA sale and also subject to the condition that export shall have one to one correlation with imports and all the reconditioned or repaired or re-engineered products and scrap or remnants or waste shall be exported and none of these goods shall be allowed to be sold in the DTA or destroyed as per proviso to Rule 18 (4) (d) of SEZ Rules 2006.

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Later, JDC, KASEZ informed that the unit has stated that due to less collection of shoes in the developed countries, tough competition, high freight cost, the only worn/used shoes for processing at Kandla will be less available/ workable. The unit had requested Kandla Zone to allow them to supply worn/used recyclable products mix accessories i.e. belts, purses, backpacks, hard toys and soft toys alongwith worn/used shoes for reconditioning sorting-relabeling for 100% export to overseas. The unit had also informed to the zone that the purpose of supplying all the above products alongwith worn/used shoes from overseas is to save the high cost labour of developed countries. The request of the unit was considered by the BoA in its meeting held on 11th August 2009. The decision of the BoA is as under:-

“The Board directed DC KASEZ to examine the issue of physical exports done by the Unit. Accordingly, the Board decided to defer the request of M/s. Maruti Exports for broad banding for granting permission to include worn used recyclable products mix accessories i.e. belts, purses, backpacks, soft toys, hard toys.”

The performance of the unit as furnished by the KASEZ for the last three years (from 1.4.2006 to 31.03.2009) is as under:-

(Figures in Lakhs) (i) Physical export : 7140.55 (ii) Deemed export: : 0.00 (iii) Capital goods debit : 5.96 (iv) Imported raw material/Input used : 6775.68 (v) NFE Earning : (+) 358.91

The request of the developer is placed before BoA for consideration.

Item No. 40.26: Appeals before BoA

(i) Appeal of M/s New Tech Abrasives Limited, a unit in the ISEZ, against the order dated 23.12.2009 of the Approval Committee, ISEZ, cancelling the LoP of the unit

M/s New Tech Abrasives Limited has preferred an appeal before the BoA against the order dated 24.12.2009 of the Approval Committed, ISEZ cancelling the LoP of the unit (Annexure – 17). The unit was granted LoP on 22.12.2005 for manufacturing of Steel ingots, shots and grits for exports. The unit has stated that a show cause notice was issued on 30.11.2009 contending that the unit has evaded payments of Central Sales Tax (CST) and Value Added Tax (VAT) by way of mis-declaration on documents, thus evaded payment of Customs Special Additional Duty (SAD). It was also alleged that a difference of Rs. 57.58 crores was found between the clearance figures provided by the Commercial Tax Authorities & Authorities & Customs Authorities of ISEZ. In its reply to the show cause notice, the unit denied the charges of evasion of customs SAD, VAT, CST. The unit also clarified that the difference of Rs. 57.58 crores between the clearance figures provided by the zone is due to the reason that they are engaged in trading activity also and since custom duty is not applicable on trading activity, hence the difference has occurred. The unit has stated that as per provisions of SEZ Act, the LoP can be cancelled on the ground of persistent contravention of any of the terms and conditions or the obligation subject to which the LoP was granted. However, in the instant case the unit has not contravened any of the terms and conditions of

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the LoP. The unit has stated that persistent contravention may not be related with the contravention of terms and conditions, punishable under other laws like Customs Act, Environment Laws etc. The unit has further stated that theirs is not a case of persistent contravention as it is for the first time a show cause notice issued to them. It has also been stated that due the cancellation of the LoA the unit has been closed which has led to suspension of production activity and unemployment of factory workers. The unit has also intimated that the total investment in the units is of Rs. 33 crores and now with the cancellation of LoP, the Plant & Machines are lying idle which will cause heavy loss not only to the unit but also to the financial institution who has granted financial help to the unit. The unit has, therefore, prayed for setting aside the decision of the order dated 23.12.2009.

The unit had also filed a Writ Petition before the Hon’ble High Court, Bench at Indore praying for stay on the operation of the order dated 23.12.2009. Hon’ble High Court has not granted stay but has directed the BoA to decide the appeal within a period of one month from its order dated 19.04.2010. Government Counsel defending the case has been requested by DC, ISEZ to seek extension of time period from the Hon’ble High Court. The comments of the DC, ISEZ, may kindly be seen at Annexure - 18. The appeal of the unit is placed before BoA for consideration.

(ii) Appeal by M/s New Tech Pipes Limited, a unit in the ISEZ, against the order dated 23.12.2009 of the Approval Committee, ISEZ, cancelling the LoP of the unit

M/s New Tech Pipes Limited has preferred an appeal before the BoA against the order dated 23.12.2009 of the Approval Committed, ISEZ cancelling the LoP of the unit (Annexure – 19). The unit was granted LoP on 24.05.2007 for manufacturing of ERW pipes and Mechanical Pipes for exports. The unit has stated that a show cause notice was issued on 30.11.2009 contending that the unit has evaded payments of Central Sales Tax (CST) and Value Added Tax (VAT) by way of mis-declaration on documents, thus evaded payment of Customs Special Additional Duty (SAD). It was also alleged that a difference of Rs. 5.04 crores was found between the clearance figures provided by the Commercial Tax Authorities & Authorities & Customs Authorities of ISEZ. In its reply to the show cause notice, the unit denied the charges of evasion of customs SAD, VAT, CST. The unit also clarified that the difference of Rs. 5.04 crores between the clearance figures provided by the zone is due to the reason that they are engaged in trading activity also and since custom duty is not applicable on trading activity, hence the difference has occurred. The unit has stated that as per provisions of SEZ Act, the LoP can be cancelled on the ground of persistent contravention of any of the terms and conditions or the obligation subject to which the LoP was granted. However, in the instant case the unit has not contravened any of the terms and conditions of the LoP. The unit has stated that persistent contravention may not be related with the contravention of terms and conditions, punishable under other laws like Customs Act, Environment Laws etc. The unit has further stated that theirs is not a case of persistent contravention as it is for the first time a show cause notice issued to them. It has also been stated that due the cancellation of the LoA the unit has been closed which has led to suspension of production activity and unemployment of factory workers. The unit has also intimated that the total investment in the units is of Rs. 40 crores and now with the cancellation of LoP, the Plant & Machines are lying idle which will cause heavy loss not only to the unit but also to the financial institution who has granted financial help to the unit. The unit has, therefore, prayed for setting aside the decision of the order dated 23.12.2009.

The unit had also filed a Writ Petition before the Hon’ble High Court, Bench at Indore praying for stay on the operation of the order dated 23.12.2009. Hon’ble High Court has not

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granted stay but has directed the BoA to decide the appeal within a period of one month from its order dated 19.04.2010. Government Counsel defending the case has been requested by DC, ISEZ to seek extension of time period from the Hon’ble High Court. The comments of the DC, ISEZ, may kindly be seen at Annexure - 18. The appeal of the unit is placed before BoA for consideration.

Item No. 40.27: Contiguity Relaxation

(i)
Request of M/s. Navi Mumbai SEZ Private Limited for relaxation of conditions of LoA regarding contiguity and multiple entry/exit gates

M/s. Navi Mumbai SEZ Private Limited was granted formal approval for setting up of multi product SEZ at Dronagiri, Navi Mumbai, Maharashtra vide LoA dated 30.07.2007. The said SEZ was notified on 21.11.2007 over an area of 1233.6767 hectares. In the BoA meeting held on 5th November 2009 the following request of the developer was considered:-

(a) Relaxation of condition originally imposed for ensuring contiguity; (b) Relaxation of the condition of construction of under passes, for which they have suggested secured connectivity on the ground, and (c) Approval for construction of seven multi entry/exit points in their Multi Product SEZ at Dronagiri, Navi Mumbai, Maharashtra (in view of relaxation sought vide (b) above); (d) Approve two numbers of sky walks in place of flyovers for establishing contiguity between processing areas.

The request was last considered by the BoA in its meeting held on 11th February 2010 wherein the representative of the Department of Revenue (CBEC) indicated that there are number of issues on which the report of Chief Commissioner has been sought. BoA accordingly deferred consideration of the proposal and directed CBEC must get a report from the Chief Commissioner within 02 weeks after which the report of the DC, NMSEZ and the report of the Chief Commissioner will be examined on file. However, the report from the Chief Commissioner is still awaited.

Item No.40.28:
Ex-post facto approval by Board of Approval

(i) Request of M/s. Hetero Drugs Limited for amendment in the LoA dated 22.12.2009 conveying approval of the Board of Approval for carrying out authorized operations as co-developer, in the non-processing area, of the sector specific SEZ for Pharmaceutical Formulations at Mahaboobnagar District, Andhra Pradesh developed by APIIC

Pharmaceutical Formulations SEZ at Mahaboobnagar District, Andhra Pradesh, by APIIC, was notified on 13th June 2007 over an area of 101.17 hectares. M/s. Hetero Drugs Limited has been approved as a co-developer in the aforesaid SEZ, in the meeting of the BoA held on 1st August 2008. BoA in its meeting held on 15th December 2009 had granted approval for carrying out the following authorized operation in the non-processing area:-

S. No. Authorised operations Area 1.
Generation and distribution of steam 5 Tonnes/10.5 sq. cm/sec. 2.
Generation and distribution of compressed Air 800 CFM

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Providing solvent storage tanks 120 KL 4.
Generation and distribution of Hot water 20000 KW/Hour 5.
Air Conditioning Facility 1000 TR 6.
Providing Weigh Bridge 40 ton 7.
Construction of Common Canteen building 200 sqm. 8.
Construction of utility block 675 sqm. 9.
Construction of rest rooms 340 sqm. 10.
Laundry facility 100 sqm.

Later it was brought to the notice by the co-developer that the above operations were requested by them in the processing area and not in the non-processing area as approved by the BoA. The co-developer has stated that the company has taken co-developer status from BoA for providing infrastructural facilities in the processing area of the SEZ for the purpose of developing common infrastructural facilities required by the Pharmaceutical units that are coming up in the allotted area. Therefore, the co-developer has requested for amendment in the LoA to enable them to carry out the above mentioned authorized operations in the processing area of the SEZ.

The request of the co-developer was examined on file and amendment in the LoA as sought by the developer has been issued. This is placed before the BoA for information/ratification.

(ii) Request of M/s. Lanco Solar Private Limited for deletion of the words “PV” from the present sector “Solar PV” of the SEZ at Ramdaspur Cuttack District, Orissa

Formal approval was granted to M/s. Lanco Solar Private Limited for setting up of sector specific SEZ for ‘Solar PV’ at Ramdaspur Cuttack District, Orissa, over an area of 101 hectares, vide LoA dated 31st December 2009. The developer has stated that at the time of seeking in-principle approval the sector was mentioned as “Solar SEZ” in the Form ‘A’. However, due to an inadvertent error, the sector was mentioned as “Solar PV” instead of “Solar” in the Form ‘A’ at the time of seeking formal approval. This has resulted in grant of formal approval for “Solar PV” sector instead of “Solar” sector. The developer has further stated that the SEZ is going to be a captive SEZ wherein it has been intended to undertake fully integrated manufacture of Solar power generator products like solar photovoltaic modules, related input materials/intermediates like high purity Polycrystalline silicon, silicon ingots/wafers, solar photovoltaic cells, etc, and other related products/by products. The developer has, therefore, requested for deletion of the words “PV” from the present sector “Solar PV”.

The request of the developer has been approved on file. This is placed before the BoA for information/ratification.

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