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Minutes of the 204th meeting of Approval Committee

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Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Following were present:

1. Shri. Marut Tripathi : Joint Development Commissioner,
KASEZ.
2. Shri. Sunil Solanki : Sub-Divisional Magistrate, Anjar
Rep. of District Collector, Kutch
3. Shri. Rohit Soni : Joint DGFT, Office ofJt. DGFT,
Rajkot.
(Video Conferencing mode).
4. Shri Shrikant Mantri : Deputy Commissioner ofCustoms,
Rep. ofCommissioner ofCustoms, Kandla.
5. Shri. Vincent Colaco : Assistant Commissioner ofIncome Tax,
Gandhidham.
6. Shri. Bharat Nakum : Manager R. M., DIC, Bhuj
(Video Conferencing mode).
7. Shri. Himanshu : Deputy Development Commissioner, KASEZ
Gunawat (Special Invitee)
8. Shri. Bhanu Jain : Deputy Commissioner ofCustoms, KASEZ
(SpecialInvitee)

Absentees:-

  1. Director (Banking)

204.I Review/Confirmation of the minutes of last meeting (203'¢UAC) of the Approval Committee: -

Minutes of the last meeting of Unit Approval Committee were confirmed. C \y AS

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: Minutes of the 204% Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

AGENDA ITEM NO. 204.1.1

Application for setting up of a Manufacturing unit in KASEZ by M/s. Charbhuja Trading Company, Survey No. 391, House No. 94, Bageshree Society-2, Varsamedi, Tal: Anjar (Kutch). A proposal has been submitted by M/s. Charbhuja Trading Company, Varsamedi, Tal: Anjar, Kutch for setting up a unit in Kandla SEZ for manufacturing activity.

Shri Sudhir Maheshwari, Proprietor along with Shri Vivek Milak, Authorised Representative of the firm explained the proposal. Shri Milak stated that the proprietor is engaged in trading activities of varied products in domestic market, especially agro products and metal products/pipes and now they intend to go for manufacturing of steel pipes wherein pipes will be manufactured by cutting in various sizes and they will also manufacture pipes from coils which will be done through bending process followed by welding these steel pipes will be exported as per their customer’s requirements.

The Committee asked the unit representative about the ratio of their exports v/s DTA and also space required for manufacturing activity and employment generation thereof. In reply, Shri Milak stated that majority of the finished goods will be exported and based on exigencies only, DTA sales will be done in the ratio of 10-15% approximately. He further stated that they will employ about 60 personnel both skilled & unskilled and they will construct open type steel structure shed only as they require more open space for manufacturing and storage of steel pipes.

hey will employ about 60 personnel both skilled & unskilled and they will construct open type steel structure shed only as they require more open space for manufacturing and storage of steel pipes.

The Committee asked the representative as to whether they are in the MOOVER Scheme also. In reply, Shri Milak stated that the firm is not in the MOOVER scheme, however, their another unit M/s. Venus Pipes & Tubes Ltd., which is listed company having larger volumes is in the MOOVER scheme and they will procure raw materials from M/s. Venus Pipes to their Charbhuja unit in KASEZ which will be further processed and then exported to various countries.

The Committee further noted that the ITC HS Code of finished goods at Sr. No. 1 and raw materials at Sr. No. 3 are one and the same, then what will be the manufacturing process for the same and as to whether they are planning any melting process also. In reply, Shri Milak stated that the raw material of highex. dimension pipe will be processed by drawing operation

: Minutes of the 204tr Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

which will be the cold draw or hot draw to obtain the required diameter and thickness of the finished product. He further stated that there will be no melting process involved in their manufacturing activity.

be the cold draw or hot draw to obtain the required diameter and thickness of the finished product. He further stated that there will be no melting process involved in their manufacturing activity.

The Committee enquired what would be the source of fund. In reply, Mr. Milak submitted that unit will invest around Rs. 85 lakhs from their own financial reserve and around Rs. 3 crore, they will take loan from the Bank for this he also submitted the recommendation letter from the Canara Bank offering Rs. 3 crore for this project.

The Approval Committee after due deliberation decided to approve the proposal for setting up a manufacturing unit subject to standard terms and conditions as under: -

  • i) Any restrictions on import/export of manufacturing items and its raw materials will apply.

  • ii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS).

  • ili) In case of any discrepancy/mismatch between the ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.

  • iv) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.

  • v) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

  • Vi) Further, the applicant will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.

dertaking of such activities.

  • Vi) Further, the applicant will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.

  • vii) Further, the applicant will give an undertaking that none of the items proposed and its raw materials are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

AGENDA ITEM NO. 204.1.2

Application for setting up of a Trading and Warehousing unit in KASEZ by M/s. Charbhuja Trading Company, Survey No. 391, House No. 94, Bageshree Society-2, Varsamedi, Tal: Anjar (Kutch).

A proposal has been submitted by M/s. Charbhuja Trading Company, Varsamedi, Tal: Anjar, Kutch for setting up a unit in Kandla SEZ for trading and warehousing activity. Shri Sudhir Maheshwari, Proprietor along with Shri Vivek Milak, Authorised Representative of the firm explaineda proposal. Shri Milak wer

Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

stated that apart from manufacturing unit they also propose to set up a trading and warehousing unit in KASEZ steel coils and steel pipes.

The Committee informed the representatives of the unit that the Committee is not considering the proposal for setting up of unit for trading and warehousing activity and therefore the Committee will not be in a position to consider their proposal for setting up of a Trading and Warehousing unit in KASEZ. Therefore, the Approval Committee after due deliberation decided to reject their proposal for setting up of a Trading and Warehousing unit in KASEZ.

AGENDA ITEM NO. 204.1.3

Application for setting up of a Manufacturing unit in KASEZ by M/s. Multicom(KASEZ) Tradelink Pvt. Ltd., 10t4 1002A Pinnacle Business Park, Corporate Road, Ahmedabad-380015.

A proposal has been submitted by M/s. Multicom (KASEZ) Tradelink Pvt. Ltd., Ahmedabad for setting up a unit in Kandla SEZ for manufacturing activity.

Shri R. G. Chellani, Director of the company explained the proposal. Shri Chellani stated that the proposed company is a newly created company and the present proposal is for manufacturing of paper and paper products. He submitted that he has vast knowledge of paper industry as he is conversant with paper product manufacturing activity almost for 10 years. The other director of the firm, Mr. Hiren Kumar Patel is indenting agent for paper products being imported from various countries and he is involved in selling the paper products to local papers mills. He further stated that for the proposed manufacturing activity of paper & paper products, they will be importing/procuring duplex paper, white paper & Kraft paper wherein the white paper in rolls will be cut to A4 size & other size papers and Kraft paper will be cut to make paper carry bags which will be mainly for export purpose only. He further stated that Rajkot and Vapi are the main centres for paper and they will procure the raw materials proposed for manufacturing activity from Vapi/ Rajkot.

mainly for export purpose only. He further stated that Rajkot and Vapi are the main centres for paper and they will procure the raw materials proposed for manufacturing activity from Vapi/ Rajkot.

The Committee asked the unit representative whether company will perform only export or there will also be a DTA clearance. In reply, Shri Chellani submitted that their company will mainly export the items and some percentage may also be utilized for the DTA clearance.

The Committee asked the unit representatives what kind of capital goods are going to be used for the manufacturing of the final product. Shri Chellani replied that there would be a silting ma¢hine, hydraulic machine Gin

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Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

etc. with which entire manufacturing activity will be carried out. He further submitted that they will install few quality testing equipments to check the GSM of the paper, BF (Bursting Factor) & TF (Tearing Factor) of the papers which are very crucial for checking the thickness of the paper and the strength of the products.

g equipments to check the GSM of the paper, BF (Bursting Factor) & TF (Tearing Factor) of the papers which are very crucial for checking the thickness of the paper and the strength of the products.

The Committee asked the Director about the cost of the plant & machinery required for paper products, its export market, space required for manufacturing activity and employment generation thereof. In reply, Shri Chellani stated that they will install indigenous plant & machinery valuing about Rs. 18 lakhs. He further stated that the export market will be USA, Africa, Russia & Middle East and they will generate employment of 25 personnel. Regarding, area requirement, he further stated that they will require area of about 1.5 acres out of which 4,000 sq. mtrs. will be built up area. He also stated that paper rolls would also be placed in single stake to preserve the strength of the paper else if they are placed one above another their strength will also be compromised. Therefore, they have mentioned larger space requirement for the storage of the raw material and finished goods.

The Approval Committee after due deliberation decided to approve the proposal for setting up a manufacturing unit subject to standard terms and conditions as under: -

    1. Any restrictions on import/export of manufacturing items and its raw materials will apply.

  • ii) The items falling under Chapter 48 will be subject to compulsory registration under Paper Import Monitoring System (PIMS).

rt/export of manufacturing items and its raw materials will apply.

  • ii) The items falling under Chapter 48 will be subject to compulsory registration under Paper Import Monitoring System (PIMS).

  • ili) In case of any discrepancy/mismatch between the ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.

  • iv) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.

  • v) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

  • vi) Further, the applicant will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.

  • vii) Further, the applicant will give an undertaking that none of the items proposed and its raw materials are falling under negative list and if the items are found in negative list, penal action will be initiated against them. = YL) : eR

Minutes of the 204t Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Application for setting up of a Manufacturing unit in KASEZ by M/s. MJ Krishi Private Limited, 310, Gala Magnus, South Bopal, Ahmedabad - 380058.

A proposal has been submitted by M/s. MJ Krishi Private Limited, Ahmedabad for setting up a unit in Kandla SEZ for manufacturing activity.

Shri Pratiksingh Gautam, Director of the company explained the proposal. Shri Pratik stated that that their company is having experience of 15 years in import and export business and presently he is into export of castor oil and import of various petrochemical and steel products. Now they want to diversify to the business of manufacturing and want to set up a manufacturing plant in the Kandla Special Economic Zone as they have got enquiry for the lubricating oil.

The Committee noted that the name of the unit is MJ Krishi and the product which they propose to manufacture is lubricants & grease and asked the Director as to whether they will face problem in implementing the project. In reply, Shri Pratik stated that they have started their unit with castor oil and then later on for expanding the business, lubricating oils and grease were added and became part of their business and hence their unit name is MJ Krishi. He further stated that Iran and other developing countries have already started manufacturing lubricating oils from the castor oil, however, the said process is quite expensive.

it name is MJ Krishi. He further stated that Iran and other developing countries have already started manufacturing lubricating oils from the castor oil, however, the said process is quite expensive. He also submitted that currently in Africa, number of companies of automobile & pharmaceutical sector are setting up their units and therefore, presently and also in future there will be a huge demand of lubricants and grease. The Committee asked the Director about the investment proposed for manufacturing products, export market, space required for manufacturing activity and employment generation thereof. In reply, Shri Pratik stated that they propose to invest about Rs. 2 to 2.5 crores in their proposed project wherein Rs. 1 crore will be share capital & reserves and Rs. 1 crore loan will be taken from bank. The export market will be African countries, south American countries, middle east, etc. and they will give employment to about 35-40 personnel which will be increased later. Regarding, space requirement, Shri Pratik stated that they will require 10,000 sq. mtrs. land for setting up their manufacturing unit.

The Committee noted that the items proposed require various compliances including PESO, Fire NOC and the applicant has to submit layout plan showing the green belt area as per Petroleum Act and various other compliances. The physical verification will beWw)wndertaken by the

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PESO, Fire NOC and the applicant has to submit layout plan showing the green belt area as per Petroleum Act and various other compliances. The physical verification will beWw)wndertaken by the

~

Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

customs wing of KASEZ to verify the compliances undertaken from time to time.

Mr. Pratik also submitted that after getting the permission and valid license of manufacturing activity, their company will also approach for PESO license and other license and compliances as required as per Govt. norms. He further submitted that their company will take proper care of the all Govt. regulatory and norms whether it pertains to PESO, Fire Safety Norms, Green Belt etc:

The Committee further asked the Director of the company as to whether there will be any by-product wastage in their process of manufacturing. In reply, Shri Pratik stated that plant will be zero waste plant and hence no by-product waste will be generated.

The Approval Committee after due deliberation decided to approve the proposal for setting up a manufacturing unit subject to standard terms and conditions as under: -

    1. Any restrictions on import/export of manufacturing items and its raw materials will apply.

  • i) In case of any discrepancy/mismatch between the ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.

terials will apply.

  • i) In case of any discrepancy/mismatch between the ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.

  • ii1) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.

  • iv) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

  • v) Further, the applicant will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.

  • Vi) Further, before commencement of their manufacturing activity, physical verification will be undertaken by the customs wing of KASEZ to verify the compliances undertaken by the unit with regard to green belt, PESO licence, Fire NOC, etc.

  • vii) Further, the applicant will give an undertaking that none of the items proposed and its raw materials are falling under negative list and if the items are found in negative list, penal action will be initiated against them. te

  • TOO

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. Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

AGENDA ITEM NO. 204.1.5

Application for setting up of a Manufacturing unit in KASEZ namely M/s. V. K. ELECTRONIC DEVICES PRIVATE LIMITED, Factory Khasra No. 836, Village Didoli, Muradnagar, Ghaziabad, Uttar Pradesh - 201 206.

A proposal has been submitted by M/s. V. K. ELECTRONIC DEVICES PRIVATE LIMITED, Ghaziabad, Uttar Pradesh for setting up a unit in Kandla SEZ for manufacturing activity.

Shri Dharam Gupta, Director along with Shri Bharat Gupta, Technical Head of the company explained the proposal. Shri Dharam stated that they their family is in business of electronics products since last 4 years in the name of M/s. V. K. Electronic Devices Private Limited and manufacturing LED TV, Speakers, etc. and selling in domestic market. Now, they want to undertake project expansion and intend to set up a manufacturing unit in KASEZ for TV, LED TV, Monitors, Speakers, Automatic data processing machine/IFPD as there is good export market to Sri Lanka, Nepal and South Africa. He further stated that for the proposed manufacturing activity of electronic items, the import of raw materials will be to the tune of 70% and rest 30% will be procured from indigenous source.

The Committee noted that their company’s ITR for A.Y. 2021-22 & 2022-23 shows losses and asked the Director reasons for making losses. In reply, Shri Dharam stated that due to Covid pandemic the prices of their products have slashed down but now since last year they are profit making company.

he Director reasons for making losses. In reply, Shri Dharam stated that due to Covid pandemic the prices of their products have slashed down but now since last year they are profit making company.

The Committee asked the Director as to how they will compete with their China competitors as China has the larger market of electronic products. In reply, Shri Dharam stated that Taiwan is the main manufacturer of electronic products and apart from Taiwan, electronic products are also manufactured in Japan and China. They will import 70% of their raw materials mainly from Taiwan and also from China & Japan, however, major cost cutting is 30% of their raw materials which will be procured indigenously from local market and because of procurement from indigenous sources they will be able to compete with Chinese counterparts. The Approval Committee after due deliberation decided to approve the proposal for setting up a manufacturing unit subject to standard terms and conditions as under: -

  • i) Any restrictions on import/export of manufacturing items and its raw materials will apply.

  • ii) Further, second hand/used electronic items will not be permitted/allowed to be imported/procured from domestic tariff area. s\ (GAY?)

Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

nutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

  • ili) In case of any discrepancy/mismatch between the ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.

  • iv) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.

  • v) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

  • vi) Further, the applicant will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.

  • vii) Further, the applicant will give an undertaking that none of the items proposed and its raw materials are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

204.2 REQUEST FOR BROADBANDING/ITEM ADDITION

AGENDA ITEM NO. 204.2.1

Addition of Trading activity in their existing Letter of Approval - Request of M/s. Oswal Agrimpex, KASEZ.

M/s. Oswal Agrimpex, KASEZ is an approved unit for manufacturing of BSS Grade or Special Grade Castor Oil, Commercial Grade Castor Oil, Pale Pressed Grade and various other grades of Castor Oil and its Derivatives and Castor Oil Cake/De-oiled Castor Cake in Kandla Special Economic Zone, Gandhidham vide LoA No. KASEZ/IA/005/2013-14 dated 23.01.2015, as amended. Now the said unit has requested for addition of trading activity in their LoA for Manufacturing activity.

No representative of unit appeared before the Committee to explain the proposal. The unit vide letter dated 29.07.2024 has shown their inability to attend the UAC meeting as their partner is not in town and requested to consider their request in next UAC meeting. Therefore, the Approval Committee after due deliberation decided to defer their proposal.

AGENDA ITEM NO. 204.2.2

Request for broad banding of additional items in manufacturing activity in their existing Letter of Approval No. KASEZ/IA/35/2020-21 dated 02.02.2021 for Trading activity & Warehousing activity and Manufacturing activity, as amended issued to M/s. United Safeway India Pvt. Ltd., KASEZ.

M/s. United Safeway India Pvt. Ltd., KASEZ is an approved unit for Trading and Warehousing service activity in KandlaaSpecial Economic Zone Eee

Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

vide Letter of Approval No. KASEZ/IA/35/2020-21 dated 02.02.2021, as amended. Further, their LoA was broad banded for manufacturing activity of 2 items i.e. (1) Synthetic White Vinegar Edible and (2) Refined Free Flow Iodised Salt in packaged form vide letter dated 23.05.2022.

Now the said unit has requested for broad-banding of additional items in manufacturing activity in their existing LoA.

Shri Bhaskar Naidu, Director of the company explained the proposal. Shri Naidu stated that they are in KASEZ for trading & warehousing activity and also manufacturing activity of 2 items and now they propose to include oils & chemical products in their manufacturing activity and have submitted list of 24 items for manufacturing activity and requested to permit them for additional items in manufacturing activity.

oils & chemical products in their manufacturing activity and have submitted list of 24 items for manufacturing activity and requested to permit them for additional items in manufacturing activity.

The Committee noted that in the proposal submitted by the unit they have mentioned that items at Sr. No. 10 to 24 will be mainly procured from Kandla Customs Bonded storage tanks and will be stored in KASEZ and then fill them in MS or HDPE drums for export as per their customers requirement, then how the said process involve any manufacturing. In reply, Shri Naidu stated that they were given permission for packing/re-packing of salt in their LoA and hence he thought that the drumming activity proposed will also amounts to manufacturing activity and hence he has submitted the said-items at Sr. No. 10 to 24 in manufacturing activity. The Committee directed the Director to submit a separate proposal for items at Sr. No. 10 to 24 as the same does not comes under the purview of manufacturing definition.

The Committee further asked the Director of the company about the source of funds for implementing the said manufacturing proposal. In reply, Shri Naidu stated that their investors will give funding to implement the proposed project. The Committee asked the Director to submit the agreement letter from their investors regarding source of funding to implement the proposed project.

l give funding to implement the proposed project. The Committee asked the Director to submit the agreement letter from their investors regarding source of funding to implement the proposed project.

The Committee also asked the Director of the company as to the area they will utilize for the proposed manufacturing activity. In reply, Shri Naidu stated that they have two adjacent plots admeasuring 20,000 sq. ft. and one plot opposite to the adjacent plots admeasuring 20,000 sq. ft. and these three plots will be utilized by them for the proposed manufacturing activity wherein they will install tanks and infrastructure. The Approval Committee after due deliberation decided to defer their proposal with direction to the unit to give concrete/comprehensive proposal along with detailed project report, details of plant & machinery required & source of funding & separate proposal for items at Sr. No. 10 to 24 as the same does not comes under the manufacturing a and also layout 10 ce

Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

plan showing demarcation of proposed manufacturing activity including green belt.

Intimation of change in Board of Directors -— Request of M/s. Milak Industries Pvt Ltd., KASEZ.

M/s. Milak Industries Pvt Ltd.(earlier name M/s AJD Industries Pvt. Ltd), KASEZ is an approved unit with LoA No. 17/2020-21 dated 14.10.2020, for manufacturing & Warehousing Service Activity, as amended subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

Now the said unit has intimated about the change in Board of Directors and informed that one director has resigned and two new directors have been appointed.

Shri Vivek Milak, Director of the company appeared before the Committee to explain the proposal. Shri Milak stated that due to funds issue and health issue the existing Director has retired and their family have taken over the company. The Committee asked Shri Milak about the activity undertaken by the previous Directors and as to whether any building have been constructed for the manufacturing activity. In reply, Shri Milak stated that at the initial stage the previous Directors have undertaken only warehousing activity and not started any manufacturing activity, but after he has been inducted as Director in the company in January’24, he has started development work in their allotted plot and they will soon start the manufacturing activity.

turing activity, but after he has been inducted as Director in the company in January’24, he has started development work in their allotted plot and they will soon start the manufacturing activity.

The Committee noted that Department of Commerce vide Instruction No. 109 dated 18.10.2021 has issued guidelines regarding change of name, change of shareholding pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, wherein the change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC).

Therefore, the Approval Committee after due deliberation decided to take on record the proposal of change in Board of Directors & shareholding pattern of the company subject to submission of an Affidavit/Undertaking that no Customs/DRI and any other Govt. Department case is booked against the unit and fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021. AY ial

Minutes of the 204t Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

The Committee also directed to forward the case of change in Constitution/partnership/directorship to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 204.3.2

Request of M/s. Om Siddh Vinayak Impex Pvt. Ltd., KASEZ for change in Directors and shareholding pattern of the company.

M/s. Om Siddh Vinayak Impex Pvt. Ltd., KASEZ is an approved unit with LoA No. KASEZ/IA/1860/2001-02/10043 dated 30.01.2002, for processing of Worn & Used Clothing subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended. The request of M/s. Om Siddh Vinayak Impex Pvt. Ltd., KASEZ for change in Directors and shareholding pattern of the company was placed before 203"™4 UAC meeting held on 28.06.2024 and the UAC decided to defer their proposal regarding change in Directors and shareholding pattern of the company with direction to DC office to forward the documents submitted by the unit to the member Income Tax Department for scrutiny of the documents submitted by the unit and submit its report for further deliberation in the Committee meeting. Accordingly, DC office vide letter dated 19.07.2024 has forwarded the details of the unit to the Income Tax Department with a request to submit its report for further deliberation in the matter. Now the said unit has stated that earlier they had submitted tentative Net Worth Certificate of Shri Vikas Jain, the incoming Director and the department found mis-match between the Net Worth Certificate and the ITR. They had submitted the Net Worth Certificate in hurry because the time left for submitting the proposal before UAC was very short.

tment found mis-match between the Net Worth Certificate and the ITR. They had submitted the Net Worth Certificate in hurry because the time left for submitting the proposal before UAC was very short. Further, the said unit has now submitted Net Worth Certificate dated 17.07.2024 of Shri Vikas Jain duly certified by C.A. along with the copy of Balance Sheet, giving break-up of working of Net Worth and also submitted the copy of ITR for the A.Y. 2024-25.

Shri. Harmeet Singh Kohli, Director along with Shri Vikas Jain, Director being inducted of the company appeared before the Committee to explain the proposal. Shri Kohli stated that he is in KASEZ since last 18 years and due to health issues of his mother he is now based in Delhi and could not concentrate on his KASEZ business and hence he has inducted a new Director Shri Vikas Jain who has vast experience in the field of processing of worn/used clothing and will be looking after the operational side of the worn/used clothing unit in KASEZ. Shri Kohli further stated that due to inadvertent error earlier they had submitted net worth certificate of new Director in ahurry and now they

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Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

have submitted revised net worth certificate giving and also ITR for A.Y. 2024-25 showing break-up of working of net-worth and requested to take the change in Director and shareholding pattern of the company on record.

d net worth certificate giving and also ITR for A.Y. 2024-25 showing break-up of working of net-worth and requested to take the change in Director and shareholding pattern of the company on record.

The Committee directed the Directors to furnish = an Affidavit/Undertaking with regard to the inconsistency between the ITR and net worth certificate earlier submitted and also the present net worth and ITR. The Committee noted that Department of Commerce vide Instruction No. 109 dated 18.10.2021 has issued guidelines regarding change of name, change of shareholding pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, wherein the change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC). Therefore, the Approval Committee after due deliberation decided to take on record the proposal of change in Board of Directors & shareholding pattern of the company subject to submission of an Affidavit/Undertaking that no Customs/DRI and any other Govt. Department case is booked against the unit ®& also Affidavit/Undertaking regarding net worth certificates & ITRs and fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021.

The Committee also directed to forward the case of change in Constitution/partnership/directorship to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 204.3.3

Request of M/s. Vertex Hardware (Kandla) Pvt. Ltd., KASEZ for change in Directors and shareholding pattern of the company.

M/s Vertex Hardware (Kandla) Pvt. Ltd., KASEZ is issued with LoA No. 2/62/76-FTZ dated 03.11.1976, as amended, for manufacturing of varieties of Builders hardware namely doors and windows fittings such as varieties of kicking plates, latches fasterners etc.

Now the said unit has intimated regarding change in Directorship of the company wherein one Director has resigned from the Board of Directors and two Directors have been appointed as Directors of the company and also there is change in share holding pattern. They have also submitted copies of Form No. DIR-12 of ROC regarding appointment and resignation of Directors.

Shri Manish Gadhvi, Director being inducted in the company appeared before the Committee to explain the proposal. Shri Gadhvi stated that two Directors has been inducted and one Director has resigned from 13 i me

. Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

the company and also there is change in shareholding pattern in the company.

The Committee asked Shri Gadhvi about the items approved in their LoA. In reply, Shri Gadhvi stated that their unit in KASEZ is approved for manufacturing of building material of brass such as stoppers, hinges, etc.

d Shri Gadhvi about the items approved in their LoA. In reply, Shri Gadhvi stated that their unit in KASEZ is approved for manufacturing of building material of brass such as stoppers, hinges, etc.

The Committee further noted that earlier M/s. Vertex Mfg. Co. Pvt. Ltd. was holding 99% share and now the entire 100% shares of the company has been taken over by the two new Directors being inducted and asked the Director being inducted as to whether there is any Board Resolution of M/s. Vertex Mfg. Co. Pvt. Ltd. in this regard and whether they have submitted Board Resolution copy to the DC office. In reply, Shri Gadhvi stated that M/s. Vertex Mfg. Co. Pvt. Ltd. has passed necessary Board Resolution regarding transfer of shares, however, they have not submitted the same to the DC office.

Therefore, the Approval Committee after due deliberation decided to defer their proposal regarding change in Directors& shareholding pattern of the company and directed the unit to submit Board Resolution of M/s. Vertex Mfg. Co. Pvt. Ltd. regarding transfer of shares.

Permission to warehouse goods on behalf of Overseas/DTA client and Addition of Trading Activity under the existing LoA -— Request of M/s. Harish Processors Pvt. Ltd., KASEZ.

M/s Harish Processors Pvt. Ltd. is an approved unit vide LOA No. KASEZ/IA/042/2010-11 dated 29.11.2010 for warehousing service activity, as amended.

Now the said unit has requested for permission to warehouse additional items on behalf of their overseas as well as DTA client and also addition of trading activity in their existing LoA. Shri Harish Chaturani, Director along with Shri Sahil Chaturani, authorised representative of the company explained their proposal. Shri Harish informed that they were granted permission for warehousing of 14 chemical and allied products and now they have requested for permission for warehousing of additional items for chemicals and allied products and also addition of trading activity of chemicals and allied products. He further stated that they have already obtained PESO licence for the already approved chemical items and requested to further approve 31 chemical items in their warehousing and also addition of trading activity.

Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

The Committee noted that the items at Sr. No. 1, 12 & 13 are dual use substances items which are used domestically and in narcotics also and decided not to allow the said items in trading & warehousing activity.

noted that the items at Sr. No. 1, 12 & 13 are dual use substances items which are used domestically and in narcotics also and decided not to allow the said items in trading & warehousing activity.

The Approval Committee after due deliberation decided to approve the proposal for addition of items in warehousing service activity and also addition of trading activity except items at Sr. No. 1, 12 & 13 of the proposal/Agenda (subject to unit submitting KYC of their clients alongwith ITR of last 3 years on whose behalf they will warehouse goods) in their existing LoA and also subject to the following standard terms and conditions:

  • i) None of the items which are restricted or prohibited will be allowed to be traded/warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. This clause will have overriding effect for any approval granted in LoA now or before.

  • ii) In case of any discrepancy/mismatch between the above ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.

  • ili) Further, no DTA sale is allowed for the approved traded items. iv) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.

  • v) The above permission is also subject to further condition that the unit shall maintain separate accounts for trading and warehousing service activity and earmark separate space for all the activities with provisions of CCTV & other equipments.

r condition that the unit shall maintain separate accounts for trading and warehousing service activity and earmark separate space for all the activities with provisions of CCTV & other equipments.

  • vi) Further, the unit will submit separate APRs for their trading and warehousing service activity.

  • vii) Further, the unit will maintain separate stock register for trading and warehousing service activity which will be subject to regular checking by the KASEZ customs authorities.

  • viii) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

  • ix) Further, the unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.

  • X) Further, the unit will give an undertaking that none of the items proposed are falling under negative list and are not hazardous or require environmental clearance for storage/ transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

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Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

AGENDA ITEM NO. 204.3.5

Permission to warehouse goods on behalf of DTA/Foreign clients - Request of M/s. Soobaika Warehouse LLP, KASEZ.

The Committee noted that M/s. Soobaika Warehouse LLP, KASEZ has requested for permission for warehousing activity of additional items. Shri Mohit Bhanushali, Partner of the firm explained their proposal. Shri Bhanushali informed that they have requested for permission for warehousing of 3 HSN Code of ceramic items in their existing warehousing activity.

The Committee noted that the unit has been granted LoA on 23.11.2023 and asked the partner as to whether they have started their authorised warehousing activity in KASEZ or not. In reply, Shri Bhanushali stated that they are yet to start their authorised warehousing activity in KASEZ and will commence their operation very soon.

The Committee after due deliberation decided to permit the additional items to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criterion and submission of ITR of last 3 years of their clients on whose behalf they will warehouse goods and also subject to following conditions:

  • i) None of the items which are restricted or prohibited will be allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. This clause will have overriding effect for any approval granted in LoA now or before.

  • li) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.

will have overriding effect for any approval granted in LoA now or before.

  • li) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.

    1. In case of any discrepancy/mismatch between the ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.

  • iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

  • v) Further, the unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.

  • vi) Further, the unit will give an undertaking that none of the items proposed are falling under negative list and are not hazardous or require environmental clearance for storage/ transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated againstw\ them. 16 er

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Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

AGENDA ITEM NO. 204.3.6

Permission for Enhancement of production capacity —- Request of M/s. Transworld Furtichem Pvt. Ltd. (Unit-I), KASEZ.

M/s. Transworld Furtichem Pvt. Ltd. (Unit-I), Plot No. 353 & 367, Sector-IV, KASEZ is an approved unit for Manufacturing of N.P.K. Fertilizers vide Letter of Approval No. KASEZ/IA/024/2004-05 dated 26.10.2004 amended/ extended from time to time.

Now the said unit has requested for enhancement of production capacity from 1,44,000 MT to 3,00,000 MT.

Shri Pradeep Goyal, Director, Shri S. J. Singh and Shri Hiren Shah, Manager of the company explained the proposal. Shri Shah stated that they have 100% utilized their plant capacity and now they want to enhance the production capacity to 3 lakh MT to meet the future export volumes.

The Committee noted that the unit has requested for capacity enhancement and they will install the plant & machinery in their allotted Plot No. 345 & 348, Sector - IV and asked the unit representatives as to whether they have submitted the list of plant & machinery and the details of investment proposed & source of funds. In reply, Shri Goyal stated that they are going to invest about Rs. 15 crores in plant & machinery as the building in the allotted plot already exists, however, they have not submitted any such details along with their application for enhancement of production capacity.

ores in plant & machinery as the building in the allotted plot already exists, however, they have not submitted any such details along with their application for enhancement of production capacity.

The Committee asked the representatives of the unit to submit a complete proposal submitting therewith details layout plan showing the green belt area as per Pollution norms, details of plant & machinery, details of investment proposed & source of funds.

The Approval Committee after due deliberation decided to defer their proposal with direction to the unit to submit complete proposal along with detailed project report, details of plant & machinery required & source of funding & layout plan showing the green belt area as per Pollution norms. The Committee further directed the DC office to examine the performance of the unit during the last 3 years and parameters/compliances norms being followed by the unit.

AGENDA ITEM NO. 204.3.7

Renewal of LoA of M/s. Rama Cylinders Pvt. Ltd., KASEZ for further five years period from 15.09.2024 under Rule 19(6) of the SEZ Rules, 2006

M/s. Rama Cylinders Pvt. Ltd., KASEZ is an approved unit with LoA F.No. KASEZ/IA/ 039/ 2006-07/138817 datedrr ZN\ for undertaking

  • Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Manufacturing activity of High Pressure Cylinders and Trading Activity, as amended from time to time. The LoA of the unit is valid upto 14.09.2024.

The unit has applied for renewal of their LoA for further period of 5 years w.e.f. 15.09.2024 and during scrutiny of their request it was noticed that the unit has not achieved positive NFE and as per the APRs for the year 2023-24 submitted by the unit, the said unit is having negative NFE to the tune of Rs. (-) 6311.52 Lakhs at the end of their last five year block period.

Shri Milin Khalke and Shri S. K. Das, Authorised Representatives of the unit appeared before the Committee to explain the proposal. Shri Das stated that they were regularly exporting their cylinders to Iran & Pakistan but due to slow down of export market in Iran & Pakistan their export has come down to 10% due to which they could not achieve positive NFE in their last 5 year block period. Now, they are exploring new export markets in Italy and USA and also Egypt where there is demand for CNG Cylinders.

e to which they could not achieve positive NFE in their last 5 year block period. Now, they are exploring new export markets in Italy and USA and also Egypt where there is demand for CNG Cylinders.

The Committee noted that the unit could not achieve positive NFE in their last five year block period and for non-achievement of positive NFE, Rule 25 & Rule 54 of the SEZ Rules, 2006 stipulates that the said unit is liable for penal action under the provisions of the FT (D&R) Act, 1992. Therefore, the Approval Committee after due deliberation decided to renew the LoA of the unit for manufacturing and trading activity for further period of 5 years w.e.f. 15.09.2024 and also directed the DC office for issuance of show cause notice for non-achievement of positive NFE as per the provisions of the SEZ Rules, 2006.

AGENDA ITEM NO. 204.3.8 Ratification of SCN and O-I-O issued to Kandla SEZ units

The Committee was briefed on the issue of Show Cause Notice issued and O-I-O issued to the KASEZ units.

The members of the UAC unanimously agreed on the issues discussed in the SCN and O-I-O in view of the contravention made therein. The Approval Committee ratified the following Show Cause Notice issued by the Development Commissioner, KASEZ and authorised the Development Commissioner, KASEZ to adjudicate the show cause notice being issued. Sr. Name of the Unit Show Cause Notice No. | Issue in brief No. & Date 1. Deepak Acid ®&/} KASEZ/IA-1/DA/2016| Late submission of Chemical 17 dated 11.07.2024 application in Form Industries .Fl for renewal of 18 | a)

i

ow Cause Notice No. | Issue in brief No. & Date 1. Deepak Acid ®&/} KASEZ/IA-1/DA/2016| Late submission of Chemical 17 dated 11.07.2024 application in Form Industries .Fl for renewal of 18 | a)

i

Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

||||||their|Letter|of|
|---|---|---|---|---|---|---|---|
||||||Approval<br>for further|||
||||||5<br>years|period.||
||Further,|the|Approval|Committee|ratified<br>the<br>following<br>Order-in-|||
|Original issued||by the Development Commissioner, KASEZ.||||||
|No.|||No.|& Date||||
|1.|Global|Cups|&|KASEZ/07/2024-|||For<br>mnon-achievement<br>= of|||
||Consumables||25|dated|positive NFE||during|the<br>5|
||Pvt. Ltd.||24.07.2024||year<br>block<br>period||ending|
||||||2023-24<br>SCN||dated|
||||||10/11.06.2024|issued|to the|
||||||unit<br>and<br>the|adjudicating||
||||||authority has|issued|O-I-O|
||||||imposing|appropriate||
||||||penalty.|||

TABLE AGENDA ITEM NO. 204.4.1

Ratification of O-I-Os to be issued to M/s. MGA & Associates (Unit-I]), M/s. Varsur Impex Pvt. Ltd., KASEZ and M/s. Shriji Overseas, KASEZ The Committee was informed that the UAC in its 195 meeting held on 19.10.2023 had unanimously decided to withdraw all the approvals granted to the units in KASEZ for warehousing of Arecanut/Betelnut and Pepper which are only involved in providing warehousing services on the behalf of their clients as instances have come to the notice of the Development Commissioner’s office that many of the warehousing units of KASEZ are indulged in mis-declaration/mis-use of warehousing of goods viz. Arecanut/Betelnut and Pepper on behalf of their clients. Due to the sensitivity of the goods permission for warehousing of the subjected goods were not approved by the UAC since June, 2021. Aggrieved with the decision taken in 195% UAC meeting held on 19.10.2023, three of the KASEZ units i.e. M/s MGA & Associates (Unit-II), M/s Shreeji Overseas and M/s Varsur Impex Pvt. Ltd. have preferred appeals against the said order of UAC before the Board of Approval (BOA) and the BOA in its 119% meeting held on 06.03.2024 directed the Development Commissioner to provide them opportunity of personal hearing so that the principle of Natural Justice is complied with. Accordingly, DC office has issued Show Cause Notices to the above three units of KASEZ and personal hearings was also held with each of the three units.

principle of Natural Justice is complied with. Accordingly, DC office has issued Show Cause Notices to the above three units of KASEZ and personal hearings was also held with each of the three units. Further, the Committee was informed that M/s MGA & Associates (Unit-II) has withdrawn its appeal and submitted letter to this effect. (\ 19 er

, Minutes of the 204th Unit Approval Committee Meeting of Kandla SEZ held on 30.07.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

The Committee deliberated on the draft Order-in-Originals to be issued to above three units and authorised the Development Commissioner to issue O-I-Os to the above three units.

Trading and warehousing of Petroleum Products:

The Committee also reviewed the approvals granted to warehousing and trading units in KASEZ for chemicals & petroleum products and noticed that number of approvals have been granted for chemicals & petroleum products and decided to have a re-look of such units indulged in drumming of chemical & petroleum products. The Committee decided to first get the inspection and review of all such warehousing and trading units which are dealing in the chemical and petroleum products for compliances as per the Petroleum Act and Fire safety prospects.

The Committee further decided not to grant any approval for chemicals & petroleum products in the warehousing and trading activity henceforth till the inspection and review of the existing warehousing & trading units are decided.

The Committee also directed the DC office that the units who have been granted approval in the UAC may be given 3 weeks’ time to submit the requisite documents/undertaking otherwise the approval granted by the UAC will be liable for cancellation.

e units who have been granted approval in the UAC may be given 3 weeks’ time to submit the requisite documents/undertaking otherwise the approval granted by the UAC will be liable for cancellation.

Notwithstanding to the decisions of the Committee, if the DC Office/Approval Committee notices any instance of default in rent or pending legal proceedings as on date of decision of the Committee or any legal proceedings that may be initiated after the decision of the Committee against the unit/firm/company and/or its Proprietor/Partner/Director, which has a bearing on the decision taken/LoA issued to the firm in any manner, the LoA granted will be hable for cancellation including action under the FT (D&R) Act and necessary action will be taken against such units in terms of applicable provisions of law.

The meeting ended with a vote of thanks to the Chair.

ent | (Dinesh Singh) Development Commissioner Kandla Special Economic Zone

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