Minutes of the 2nd meeting of Approval Committee

Minutes of the 2nd meeting of Approval Committee (2009-10) held on 08/06/2009 at 1500 hrs. at KASEZ, under the Chairpersonship of Dr.(Mrs.) Maya D. Kem, Development Commissioner.

Following were present:

1 Shri Upendra Vasishth, JDC Nominee of MOC 2 Shri Jeetash Nagori, Jt. Commissioner of Customs
Nominee of Commissioner (Cus) 4 Shri D.B. Parmar I/c GM, DIC

Absent:

(1) Director (Banking)
(2) Addl.Commissioner Income-tax (3) Jt.Director General of Foreign Trade

I. Review/confirmation of minutes of last meeting of the Approval Committee:

Minutes of last meeting of the Approval Committee were confirmed.

II. Following proposals for setting up units in Kandla Special Economic Zone were taken up for consideration:

(i) M/s. Airfly Traders, Gandhidham:

It was noted that the proposal was discussed in the last Approval Committee meeting and the promoter was asked to re-work on his proposal and give specific list of items for trading. Promoter did not turn up for the interview today alongwith the above deteails. The proposal was, therefore, deferred.
(Action: IA-I)

(ii) M/s. Shree Saibab Petroleum, Ahmedabad:

Propoal is to set up a unit for trading of Petroleum and petroleum products. Mr. Vijay Purohit, Partner appeared for interview and put forth following:

¾ They are authorized business development associate for IOC for LDO and FO. ¾ In SEZ they will make storage tanks of 200 KL for storage of FO and LDO. ¾ Investment will be between Rs.35 to 40 lakhs. ¾ Products will be only LDO and F.O.

associate for IOC for LDO and FO. ¾ In SEZ they will make storage tanks of 200 KL for storage of FO and LDO. ¾ Investment will be between Rs.35 to 40 lakhs. ¾ Products will be only LDO and F.O. ¾ Some times the import will be cheaper and in that time they will import the product. ¾ Space requirement is 1200 sq.mtrs.

Committee’s observation/clarifications:

¾ FOB value of exports for 5 year period is Rs.92 crores with a NFE of Rs.92 crores.

Proposal is approved subject to standard terms and conditions. (Action: IA-I)

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(iii) M/s. Easy Warehousing, Gurgaon:

Committee noted that the proposal was discussed in the last Approval Committee meeting and the promoter was asked to give specific items. Propoal is to set up a Free Trade and Warehousing Service facility. Mr. Harmeet Singh Kohli authorisied by the promoter appeared for interview and put forth following:

¾ In the warehouse they receive the material and export as per the directions of their overseas supplier. ¾ Intend to do garments. ¾ Land requirement is 2800 sq.mtrs.

Committee’s observation/clarifications:

¾ FOB value of exports for 5 year period is Rs.4750 lakhs with a NFE of Rs.4750 lakhs.

Proposal was approved subject to standard terms and conditions. (Action: IA-I)

(iv) M/s. Armstrong Pellets Private Ltd., Mumbai:

It was noted that in the last Approval Committee meeting this proposal was taken up. But the promoter did not come for interview. In this meeting also promoter failed to appear for interview and for further discussions on their project.

Committee meeting this proposal was taken up. But the promoter did not come for interview. In this meeting also promoter failed to appear for interview and for further discussions on their project. It was noted that their requirement of space is 40,000 sq.mtrs. Since KASEZ do not have the space to meet with their requirement, it was decided to reject their proposal.
(Action: IA-I) (v) M/s. Ved Telecommunications, UP:

It was noted that in the last Approval Committee meeting this proposal was taken up. But the promoter did not come for interview. In this meeting also promoter failed to appear for interview and for further discussions on their project. It was reported by the IA-I Section that there was a phone call from the promoter that they are not interested to set up the unit in Kandla SEZ and desire to drop the proposal. It was therefore, decided to treat the proposal as withdrawn. The applicant may be asked to give it in writing. On receipt of letter case will be closed. (Action: IA-I)

(vi) M/s. Apex Lubricants, Gandhidham:

It was noted that the proposal discussed in the last Approval Committee. The proposal is to set up a trading unit for lubricants. Promoter appeared for interview and put forth following:

¾ They are agents for HPCL and already supplying the goods. ¾ They will be supplying to the foreign going vessels as per their requirements. ¾ Items will be procured from HPCL. ¾ They require a 200 sq.mtrs. land.

for HPCL and already supplying the goods. ¾ They will be supplying to the foreign going vessels as per their requirements. ¾ Items will be procured from HPCL. ¾ They require a 200 sq.mtrs. land.

Committee’s observation/clarifications:

¾ FOB value of exports for 5 year period is Rs.176 lakhs with a NFE of Rs.176 lakhs.

Proposal was approved subject to standard terms and conditions. (Action: IA-I)

• 3 - (vii) M/s. Haresh Petroleum Pvt. Ltd., Mumbai:

Promoter did not turn up for interview and for further discussions on their project. It was noted that their requirement of space is 38,000 sq.mtrs. Since KASEZ do not have the space to meet with their requirement, it was decided to reject their proposal.
(Action: IA-I) (viii) M/s. Oscar International, New Delhi:

Propoal is to set up a unit for trading of liquor, cigarettes and FMCG products. Promoter appeared for interview and put forth following:

¾ Procure materials from abroad and supply to overseas countries. ¾ Investment Rs.50 lakhs. ¾ Trading will be on back to back L/C. ¾ Space requirement is 450/380 sq.mtrs.

Committee’s observation/clarifications:

¾ Cigarettes is not an item covered under A/A route. ¾ FOB value of exports for 5 year period is Rs.3900 lakhs with a NFE of Rs.390 lakhs. ¾ Promoter was asked to give details of investment, means of finance, obtain licence from the State Govt. departments for liquor and also ITC HS code of the items. (Action: IA-I)

(ix) M/s. D.P.

Promoter was asked to give details of investment, means of finance, obtain licence from the State Govt. departments for liquor and also ITC HS code of the items. (Action: IA-I)

(ix) M/s. D.P. Associates, New Delhi:

Propoal is to set up a unit for manufacturing/service activity for refurbishing, repairing and recycling of old electronic and electrical materials. Mr. Pranav Tripathi, Parther appeared for interview and put forth following:

¾ Bring materials from abroad and undertake the repairing/refurbishing in SEZ and re-export. ¾ Investment Rs.10 to 15 lakhs, which will be met through bank and internal accruals. ¾ Margin between 30 and 40% ¾ Space requirement is 1400/700 sq.mtrs.

Committee’s observation/clarifications:

¾ FOB value of exports for 5 year period is Rs.1026 lakhs with a NFE of Rs.448 lakhs. ¾ Promoter was informed that they have to maintain one to one correlation for import and export. The remnants, waste, etc. will be governed by the SEZ Act/Rules & FTP. ¾ Proposal was approved subject to above conditions. (Action: IA-I)

(x) M/s. Shree Bhagwati Lubricant Industries, Ludhiana:

Propoal is to set up a unit for manufacturing of lubricants. Promoter appeared for interview and put forth following:

¾ He was an NRI and settled back in India recently. He was doing the same business in Dubai. ¾ Import HDPE material for can as it is cheaper than the HDPE available in India. ¾ The manufacturing line will be fully automatic and that the employment will be very less say about 15.

n Dubai. ¾ Import HDPE material for can as it is cheaper than the HDPE available in India. ¾ The manufacturing line will be fully automatic and that the employment will be very less say about 15. ¾ Project cost is Rs.80 lakhs and the same will be met from promoter’s contribution. ¾ Space requirement is 1550 sq.mtrs.

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Committee’s observation/clarifications:

¾ FOB value of exports for 5 year period is Rs.1925 lakhs with a NFE of Rs.825 lakhs.

Committee felt that this will be discussed in the next approval Committee meeting due to time constraint and there is no need to call for the promoter again for interview as he was already heard by the Committee as above. (Action: IA-I)

DC 09-06-2009