Minutes of the 40th meeting of Approval Committee

Minutes of the 40th Approval Committee meeting of KASEZ held on 22/12/2010. Page 1 of 3

Minutes of the 40th meeting of Approval Committee held on 22/12/2010 at 1100 hrs. at KASEZ, under the Chairpersonship of Shri Upendra Vasishth, Development Commissioner (i/c), KASEZ.

Following were present:

1 Shri Jitesh Nagori Addl. Commissioner (Cus) 2 Shri Thomas Kurian Dy. Development Commissioner 3 Shri Ranjit Kr. Singh, IAS Asstt. Collector, Anjar 4 Shri D.B. Parmar Rep. JCI & GM, DIC

Absent:

(1) Director (Banking) (2) Jt. DGFT (3) Addl.Commissioner (Income-tax)

40.1 Review/confirmation of the minutes of last meeting of the Approval Committee:

Minutes of the last meeting of the Approval Committee were confirmed.

40.2. Action Taken Report:-

40.2.1 As approved in the last Approval Committee meeting, Letter of Approval and the offer of allotment of premises have been issued to the following applicants:-

(i) M/s. ITM Safety Pvt. Ltd. (ii) M/s. Tokyo Plast International Ltd. (iii) M/s. Oswal Tradex (iv) M/s. Anchor Enterprises (v) M/s.Shiv Construction (vi) M/s. Sankalp Marines & Exports (vii) M/s. International Warehousing (viii) M/s. Add Impex (ix) M/s. Vishwas Enterprises (x) M/s. Aswin Enterprises

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

40.3.1 M/s. Gautam Freight Pvt. Ltd., Gandhidham:

The proposal is to set up a unit for Service Activity of Free Trade Warehousing Services.

cial Economic Zone were taken up for consideration:

40.3.1 M/s. Gautam Freight Pvt. Ltd., Gandhidham:

The proposal is to set up a unit for Service Activity of Free Trade Warehousing Services. Proposed project cost is Rs.1244.50 lakhs, will be met entirely from their own sources. FOB value of exports mentoned is 4953.58 USD with a NFE of USD 4115.68. They require an area of 25000 sq.mtrs. for warehouse storage and open area of 50000 sq.mtrs.

Minutes of the 40th Approval Committee meeting of KASEZ held on 22/12/2010. Page 2 of 3

40.3.2 M/s. Strands Textiles Mills Pvt. Ltd., KASEZ:

The proposal is to set up a unit for Service facility of Warehousing activity. Proposed project cost is Rs.205 lakhs, will be met own funds and unsecured loans. FOB value of exports mentoned is Rs.344.70 lakhs with a NFE of Rs.319.40 lakhs. It was noted that they do not require additional space as they have spare area of 10000 sq.mtrs.

40.3.3M/s. HRJ Warehousing and Trading, Haryana:

The proposal is to set up a unit for Service Activity of Free Trade Warehousing and trading activity. Proposed project cost is Rs.15 lakhs, will be met entirely from their own sources. FOB value of exports mentoned is Rs.240 lakhs with a NFE of Rs. 140 lakhs. They require an area of 500 sq.mtrs. built up area.

40.3.4 M/s. Rudraksh Warehousing & Logistics Services, Gandhidham:

The proposal is to set up a unit for Service Activity of Warehousing service activity and trading activity. Proposed project cost is Rs.89 lakhs, will be met entirely from their own sources.

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The proposal is to set up a unit for Service Activity of Warehousing service activity and trading activity. Proposed project cost is Rs.89 lakhs, will be met entirely from their own sources. FOB value of exports mentoned is Rs. 248.40 lakhs with a NFE of Rs.188.40 lakhs. They require an area of 10000 sq.mtrs.

Committee observed that there are about 21 units which have been given warehousing LOA in the Zone. Out of which about half-a-dozen approval has been issued with offer of allotment recently. Apart from this 100 acres of land has been allotted for setting up a Free Trade Warehousing, as co-developer of KASEZ. Therefore, Approval Committee felt that since KASEZ has very limited land resources, which should be used preferentially for manufacturing. Therefore, Approval Committee decided to watch the performance of the warehousing units, especially those which have been given LOA recently. DC’s office should prepare a performance of all the warehousing units over the next six months and accordingly the matter will be reviewed by the Approval Committee after six months. Therefore, the above applications were deferred. (Action: IA-I)

40.3.5 M/s. Milak Warehouse, KASEZ:

Committee observed that they are already operating warehousing activity in KASEZ and also engaged in export services like manufacturing of packaging product, co-packaging services, transport services, manufacturing of corrugated boxes, etc. The present proposal is to establish Cafeteria along-with communicating centre with fax and e-mail.

aging product, co-packaging services, transport services, manufacturing of corrugated boxes, etc. The present proposal is to establish Cafeteria along-with communicating centre with fax and e-mail.
Committee noted that no additional space was requested by them for establishing this as they have spare space available in their existing premises. Committee approved their proposal for cafeteria under the recreational services and internet under ITES. (Action: IA-I)

40.3.6 Suspension of broad banding permissions in respect of plastic/used clothing units in KASEZ:

Committee was briefed about the instruction No.69 issued by the Ministry of Commerce and Industry, which is a guideline to regulate the functioning of plastics/used clothing

Minutes of the 40th Approval Committee meeting of KASEZ held on 22/12/2010. Page 3 of 3

units in the SEZs. The LOAs of used clothing/plastic recycling units have been amended in tune with instruction No.69 dated 4/11/2010. All the broad banding permissions issued over a period of time have been suspended and they have been asked to apply for separate licence if they wish to continue these items, which was earlier permitted as broad banding. Committee noted this. (Action: IA-I Section)

40.3.7 M /s. Sanjay Ratilal Sorathia, Gandhidham:

Proposal is to set up a unit for Service activity of weigh bridge and warehousing. Committee approved the proposal subject to the condition that applicant furnishes 5 years NFE projection.
(Action: IA-I) 40.3.8 M /s.

unit for Service activity of weigh bridge and warehousing. Committee approved the proposal subject to the condition that applicant furnishes 5 years NFE projection.
(Action: IA-I) 40.3.8 M /s. E-Waste Solutions, New Delhi:

Proposal is to set up a unit for de-manufacturing of outdated computers/IT components/E- waste. It was noted that the proposal was discussed in the approval committee meeting held on 7/9/2010. The Committee observed that the applicant was a salaried person of annual salary of 3 lakhs only. He has not given details of his sources of funding, therefore, he was asked to give break-up of the proposed finance. Further, it was oabserved that recently a lot of complaints/news reports were coming about import of E- Waste into India, in the name of donations, This E-waste was being later diverted for re- processing etc. causing environmental hazards and the Govt. was considering ban on such activities. Therefore, it was decided to defer the case for the time being and meanwhile also seek guidance from the Ministry of Environment in such matters.

d the Govt. was considering ban on such activities. Therefore, it was decided to defer the case for the time being and meanwhile also seek guidance from the Ministry of Environment in such matters. As per the Minutes of the above approval committee, this Administration had sought the guidance from the Ministry of Environment in this matter vide letter dated 5/10/2010.The matter has been examined in the Ministry and informed vide their letter dated 3/11/2010 that any e-waste unit which intends to be set up in the country are required to obtain the permissions from the concerned State Pollution Control Boards and should be a member of the Common Treatment, Storage Facility for disposal of residue generated. Party vide letter dated 5/10/2010 has also given the break-up of their proposed finance. Additional Commissioner (Cus) wanted some time to study the reply of MOEF. Therefore, the proposal was deferred.
(Action: IA-I)

40.3.9 M/s. Ajanta Plastic Industries, KASEZ:

Committee noted that the unit is already existing in the Zone for manufacturing of sacks and bags of plastics and commenced production on 7/9/2007. Their request is for broad- banding of LOA for manufacture of (i) Plastic Granules, (ii) Plastic Films and (iii) Pet Flakes. Committee approved broad banding only in respect of plastic films with virgin plastic granules as raw material. Committee noted that raw material for plastic granules and pet flakes is scrap, which is in contravention of Rule 18(4)(d) and did not approve broad banding of plastic granules and pet flakes.

al. Committee noted that raw material for plastic granules and pet flakes is scrap, which is in contravention of Rule 18(4)(d) and did not approve broad banding of plastic granules and pet flakes.

(Action:IA-I Section)

(Upendra Vasishth) DC (I/c), KASEZ