Agenda of 44th BOA meeting 14th January, 2011

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Agenda for the 44th meeting of the Board of Approval to be held on 14th January 2011
at 10.30 AM in the Room No. 47, Udyog Bhawan

Item No. 44.1: 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. Mahindra World City (Jaipur) Limited Village Kalwara, Tehsil Sanganer, District Jaipur, Rajasthan Gems and Jewellery 10.1360 Yes Yes New ii M/s. Mahindra World City (Jaipur) Limited Village Kalwara, Tehsil Sanganer, District Jaipur, Rajasthan IT/ITES including Software and Hardware manufacturing 33.2545 Yes Yes New *State Government’s Recommendation

Item No. 44.2: Proposal for conversion of in-principle to formal approval

S. No. Developer
Location
Sector
Area
(in ha.) Remarks 1 Karnataka Industrial Areas Development Board (KIADB) Devanahalli Taluk, Bangalore Rural District, Karnataka Aerospace Industry 102

In-principle approval was granted in the meeting of BoA held on 22nd June 2007. LoA was issued on 26th July 2007. The developer had requested for conversion of in-principle approval to formal approval over an area of 102 hectares. The land is in possession of the developer. The Government of Karnataka has also recommended the proposal for grant of formal approval.

Item No.44.3: Requests for co-developers

(i) Request of M/s. Wipro Limited for co-developer in the sector specific SEZ for IT/ITES at Near Village, Tehsil Sanganer, Jaipur, Rajasthan, being developed by M/s. Mahindra World City (Jaipur) Limited

Sector specific SEZ for IT/ITES at District Jaipur, Rajasthan being developed by M/s. Mahindra World City (Jaipur) Limited was notified on an area of 76.10 hectares, on 10th April 2007. Subsequently, an area of 78.92 hectares was also notified on 27th March 2008 thereby making the total notified area of the SEZ as 155.02 hectares M/s. Wipro Limited has submitted a proposal for becoming a co-developer for development of IT/ITES infrastructure together with relevant amenities and facilities over an area of 23.46 acres (9.5 Ha.) of the SEZ. Co-developer agreement dated 26th August, 2010 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. Acqview Realty Private Limited for co-developer in the sector specific SEZ for Multi Services at Panvel, District Raigarh, Maharashtra, being developed by M/s. Sunny Vista Realtors Private Limited

Sector specific SEZ for Multi Services at Panvel, District Raigarh, Maharashtra, being developed by M/s. Sunny Vista Realtors Private Limited was notified on an area of
139.83 hectares, on 19th February 2009. M/s. Acqview Realty Private Limited has submitted a proposal for becoming a co-developer for development of Iconic Tower/Service Apartments/Hotel over an area of 4.72 hectares of the SEZ. Co-developer agreement dated 4th April, 2010 between the developer and co-developer has been provided. The request of the co-developer is submitted for consideration of BoA.

(iii) Request of M/s. DLF Utilities Limited for co-developer in the sector specific SEZ for IT/ITES at Rajiv Infotech Park, Plot No. 28, Hinjawadi, Ph. II, Pune, Maharashtra, being developed by M/s. DLF Akruti Info Parks (Pune) Limited

Sector specific SEZ for IT/ITES at Plot No. 28 Rajiv Infotech Park, Plot No. 28, MIDC, Hinjawadi, Ph. II, Pune, Maharashtra, being developed by M/s. DLF Akruti Info Parks (Pune) Limited was notified on 14th September, 2007 over an area of 10.33 hectares. M/s. DLF Utilities Limited had submitted a proposal for becoming a co-developer in the aforesaid SEZ for setting up a co-generation plant to install and commission gas turbine based power generating sets by setting up energy centres to provide electricity at a single source and generate chilled water using vapour absorption machines, in the processing of the area said SEZ. The request was considered in the BoA meeting held on 9th April, 2010 and was deferred till the finalization of fresh power guidelines.

The fresh power guidelines are yet to be finalized. However, M/s. DLF Utilities Limited have requested for consideration of its request stating that it has already been granted co-developer status for co-generation in the processing area through gas based gensets in four of DLF’s IT/ITES SEZs (i.e. one each at Chennai, Hyderabad and 2 at Gurgaon). Further it has already imported equipments for the above power generation facility which have been warehoused in the customs bonded warehoused for want of co-developer status. The company is incurring heavy demurrage on a day to day basis on the equipments. The detailed justification furnished by the company is at Annexure - 1.

The request is submitted for consideration of BoA.

Item No. 44.4: Requests for Authorized Operations

(i) Request of M/s. Myron Realtors Private Limited for authorized operations in sector specific SEZ for IT/ITES at village Santhal, Taluka, Sanand, District Ahmedabad, Gujarat

Sector specific SEZ for IT/ITES at village Santhal, Taluka, Sanand, District Ahmedabad, Gujarat by M/s Myron Realtors Private Limited was notified on
11th September 2009 over an area of 10.68.62 hectares. The developer had requested for the following authorized operations in the non-processing area:-

S. No. Authorised operations No. of units Area per unit (in sqm) as per FSI/FAR norms as applicable Total area
(in sqm)/ capacity (in MW) (1) (2) (3) (4) (5)

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Service Apartment 72 66.85 4813.2

48 60 2880

28 60 1680

Total 9373.2 sqm. 2. School

a. Class Rooms 56 59.45 3329.2 b. Activity Rooms – Type – I 7 116.50 815.5 c. Activity Rooms – Type – II 7 115.70 809.9 d. Staff Room – Type – I 7 44.38 310.66 e. Staff Room – Type – II 7 25.36 177.52 f. Toilets Blocks 7 82.36 576.52 g. Corridor 7 162.50 1137.50

Total 7156.8 3. Training Institute

a. Class Rooms 96 66.5 6384 b. Activity Room – 1 8 85.8 686.4 c. Activity Room – 2 8 110 880 d. Staff Room Type – 1 8 33.6 268.8 e. Staff Room Type – 2 8 26.75 214 f. Toilet Blocks 8 134.4 1075.2 g. Corridor
8 181.45 1451.6 h. Multipurpose Room 1 1370 1370

Total 12330 sqm.

The report of the DC, KASEZ, indicating quantum admissible, quantum already approved and quantum recommended is at Annexure - 2.

(ii) Request of M/s. Calica Construction & Impex Private Limited for authorized operations in the sector specific SEZ for IT/ITES at Ahmedabad, Gujarat

Sector specific SEZ for IT/ITES at Ahmedabad, Gujarat by M/s Calica Construction & Impex Private Limited was notified on 8th May 2009 over an area of 10.43.10 hectares. The developer had requested for the following authorized operations in the non-processing area:-

Authorized Operations No. of units Area per unit (in sqm.) Total area requested (in sqm)
1. Residential Apartments

-- A. Studio Apartment 120 40 4800 B. 1BHK 60 50 3000 C. 2 BHK 60 85 5100 D. 3 BHK 60 120 7200 Total of (1)

20100 2. Commercial

A. Banquet Hall 1 500 500 B. Restaurant 1 300 300 C. Food Court-24x7 1 300 300 D. Pub, Bar 1 100 100 E. Business Centre 1 500 500 F. Commercial Complex 1 2600 2600 Total of (2)

4300 3. Facilities

A. Guest House 1 800 800 B. Club House/Swimming Pool/Health Club & 1 5000 5000

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Utilities C. Conventional Centre 1 600 600 D. Bank 1 400 400 E. ATM 1 25 25 Total of (3)

6825

DC, KASEZ has intimated that this is the first request of the developer for the non- processing area. The report of the DC, KASEZ, indicating the details of quantum admissible, and quantum recommended is at Annexure - 3.

(iii) Request of M/s. Shantha Biotechnics Limited for authorized operations in sector specific SEZ for Biotech and related activities at village Muppireddipally, Mandal Toopran, District Medak, Andhra Pradesh

Sector specific SEZ for Biotech and related activities at village Muppireddipally, Mandal Toopran, District Medak, Andhra Pradesh by M/s Shantha Biotechnics Limited was notified on 13th August 2010 over an area 10.12 hectares. The developer had requested for the following authorized operations in the processing area:-

S. No. Authorised operations No. of units Area per unit (in sqm) as per FSI/FAR norms as applicable Total area
(in sqm)/ capacity (in MW) (1) (2) (3) (4) (5) 1. Boiler – 6TPH, 10.5 Bar, FO Fired (Hot water and steam generation including insulated piping for distribution) One set

-- 2. Laundry Washing and Services One Lot

-- 3. Air Compressor, Screw Type capacity 300 CFM to provide compressed Air 2 Nos

--

DC, VSEZ has recommended the request of the developer. The request is placed before the BoA for consideration.

Item No. 44.5: Requests for increase/decrease in area

(i) Request of M/s. Sri City Private Limited for decrease in area of the notified multi product SEZ at Satyavedu and Vardayya Palem Mandals, Andhra Pradesh

The above mentioned SEZ was stands notified over an area of 1538.123 hectares. Now, the developer has requested for de-notification of an area of 379.328 hectares from the SEZ, thereby making total area of the SEZ as 1158.795 hectares. The developer has stated that the slowdown in the export market has reduced the demand for SEZ. Further, the high growth of domestic demand in India has increased demand for Industrial DTA land. The developer has also stated that it has been receiving requests for larger extents of land in the non-SEZ area from Indian and foreign Companies. Therefore, in order to meet the demand

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for non-SEZ area, which, in turn, would create employment in the local area and raise the standard of living in the region, the developer has decided to convert some of the land notified as SEZ to DTA area.

The developer has undertaken to refund the duty benefits availed in respect of the land to be de-notified and has also stated that even after the proposed de-notification the balance land would remain contiguous and meet the minimum land requirement.

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

Item No. 44.6: Requests for de-notification

(i) Request of M/s. Medicaps IT Park Private Limited for de-notification of the sector specific SEZ for IT/ITES at village Panda, Tehsil – Mahu, District Indore, Madhya Pradesh, notified over an area of 11.936 hectares

The above mentioned SEZ was notified on 31st August 2006 over an area of
11.936 hectares. Now, the developer has requested for de-notification of the SEZ stating that due to the present market scenario, it does not seem possible to implement the project. The developer has also stated that no development work has been undertaken in the SEZ and thus, it has not availed any duty benefit under the SEZ Act/Rule.

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

(ii) Request of M/s. Neogen Properties Private Limited for de-notification of the sector specific SEZ for Apparel at Hindupur, District Anantapur, Andhra Pradesh, notified over an area of 141.65 hectares

The above mentioned SEZ was notified on 13th June 2007 over an area of 141.65 hectares. Subsequently, in the meeting held on 8th June 2010, BoA had granted approval to the request of the developer for de-notification of 40.80 hectares from in, thereby making the total area of SEZ as 100.84 hectares. However, the notification reducing the area of the SEZ is yet to be issued.

The developer has now requested for de-notification of the remaining area of 100.84 hectares. With this request the developer has sought de-notification of entire SEZ. The developer has stated that effective steps were initiated with an endeavour to implement the SEZ. However, despite the best efforts, business entities were not keen to set up units in SEZ. They find the DEPB scheme more beneficial as it gives them greater flexibility to respond to the demand both from domestic as well as export market. Under the circumstances, DTA location is being preferred by them, since operating from SEZ confines them to export obligations and procedural intricacies. This has resulted in SEZ facility lying idle.

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

(iii) Request of State Industrial development Corporation of Uttarakhand Limited (SIDCUL) for de-notification of the sector specific SEZ for IT/ITES at Dehradun, Uttarakhand, notified over an area of 14.6 hectares

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The above mentioned SEZ was notified on 16th June 2008 over an area of
14.6 hectares. The developer has now requested for de-notification of the SEZ stating that software units setting up at Dehradun are primarily working in domestic traffic area/STPI Scheme, therefore, operating as IT Park is more flexible in operation. The DC Noida SEZ has recommended the request of the developer and has informed that there are no units in the zone and also that the developer has not availed any duty benefits.

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

Item No.44.7: Requests for withdrawal of formal approval

(i) Withdrawal of formal approval granted to M/s. Modern India Property Developers Limited for setting up of sector specific SEZ for IT/ITES at Khopoli District Raigad, Maharashtra

M/s. Modern India Property Developers Limited was granted formal approval for setting up of sector specific SEZ for IT/ITES at Taluka Khopoli, District Raigad, Maharashtra, over an area of 14.77 hectares, vide LoA dated 14th December 2007. The SEZ is yet to be notified. Now, the developer has requested for withdrawal of formal approval stating that Board of Directors of the Company has re-evaluated their plans for development of SEZ and has decided that it will not be financially feasible to develop the SEZ due to ongoing uncertainties in global economy, its effect on IT/ITES sector and taxation under proposed Direct Tax Code. The developer has also informed that no development/construction activity has taken place in the formally approved SEZ, therefore, no fiscal benefits have been availed till date.

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

Item No.44.8: Requests for first extension of validity of formal approvals

(i) Request of M/s. J. Matadee Free Trade Zone Private Limited for extension of the validity period of formal approval, granted for setting up of FTWZ at Mannur Valarpuram village, Sriperumbudur Taluk, Kancheepuram District, Tamil Nadu, beyond 22nd May 2010.

(ii) Request of State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Engineering Goods at SIPCOT Industrial Complex, Ranipet, Phase – III, Tamil Nadu, beyond 29th July 2010.

(iii) Request of M/s. Mahindra World City (Jaipur) Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Handicraft at Jaipur, Rajasthan, beyond 22nd April 2011.

(iv) Request of M/s. Mahindra World City (Jaipur) Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Light Engineering including Automotive/Automotive component at Jaipur, Rajasthan, beyond 22nd April 2011.

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(v) Request of M/s. Genpact Infrastructure (Jaipur) Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Village Jamdoli, Jaipur, Rajasthan, beyond 6th January 2011.

(vi) Request of M/s. RNB Infrastructure Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Textile at Bikaner, Rajasthan, beyond 17th February 2011.

(vii) Request of M/s. Tata Consultancy Services Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Adibatla village, Ibrahimpatnam Mandal, Ranga Reddy District, Andhra Pradesh, beyond
3rd February 2011.

(viii) Request of Gujarat Industrial Development Corporation (GIDC) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Gandhinagar-Sarkhej Highway, Gandhinagar, Gujarat, beyond 6th January 2011.

(ix) Request of M/s. Writers and Publishers Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Chindwara, Madhya Pradesh, beyond 18th June 2010. The developer has made a delayed request for grant of first extension of the validity of the formal approval. The BoA may also consider condoning the delay.

(x) Request of Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Kurukalva villge, Renigunta Mandal, Chittor District, Andhra Pradesh, beyond 11th October 2010. The developer has made a delayed request for grant of first extension of the validity of the formal approval. The BoA may also consider condoning the delay.

(xi) Request of Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Sarpavaram village, Kakinada Mandal East Godavari District, Andhra Pradesh beyond 11th October 2010. The developer has made a delayed request for grant of first extension of the validity of the formal approval. The BoA may also consider condoning the delay.

(xii) Request of M/s. Parsvnath SEZ Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotech at Phase III, Biotechnology Park, Karakapatla village, Mulugu Mandal, Medak District, Andhra Pradesh beyond 21st August 2010. The developer has made a delayed request for grant of first extension of the validity of the formal approval. The BoA may also consider condoning the delay.

Item No.44.9: Requests for second extension of validity of formal approvals

(i) Request of Maharashtra Industrial Development Corporation for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Pharmaceutical at Krushnoor, District Nanded, Maharashtra, beyond 4th April 2010

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The developer was granted formal approval for setting up the above mentioned SEZ, over an area of 150 hectares, vide LoA dated 5th April 2006. The SEZ was notified on
11th January, 2007 over an area of 150 hectares. The developer has been granted first extension of the formal approval, the validity of which was up to 4th April 2010. The developer has requested for further extension stating that due to unavoidable circumstances development activities have slowed down. The developer has made a delayed request for grant of second extension of the validity of the formal approval. The BoA may also consider condoning the delay.

(ii) Request of Maharashtra Industrial Development Corporation for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Agro Processing Industry at Additional Latur, District Latur, Maharashtra, beyond 4th April 2010

The developer was granted formal approval for setting up the above mentioned SEZ, over an area of 200 hectares, vide LoA dated 5th April 2006. The SEZ was notified on
15th January, 2007 over an area of 200 hectares. Subsequently, an area of 61 hectares was de- notified from the SEZ on 3rd February 2010, thereby making the total area of SEZ as 139 hectares. The developer has been granted first extension of the formal approval, the validity of which is up to 4th April 2010. The developer has requested for further extension stating that due to unavoidable circumstances development activities have slowed down. The developer has made a delayed request for grant of second extension of the validity of the formal approval. The BoA may also consider condoning the delay.
(iii) Request of Maharashtra Industrial Development Corporation for second extension of the validity period of formal approval, granted for setting up of Multi Product SEZ at Nandgaonpeth, District Amravati, Maharashtra, beyond 2nd April 2010

The developer was granted formal approval for setting up the above mentioned SEZ, over an area of 1010 hectares, vide LoA dated 3rd April 2006. The SEZ was notified on
31st October, 2008 over an area of 1008.36 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 further extension stating that due to unavoidable circumstances development activities have slowed down. The developer has made a delayed request for grant of second extension of the validity of the formal approval. The BoA may also consider condoning the delay.

(iv) Request of M/s. G.P. Realtors 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 Behrampur, District Gurgaon, Haryana, beyond 13th November 2010

The developer was granted formal approval for setting up the above mentioned SEZ, vide LoA dated 14th November 2006. The SEZ was notified on 4th May 2009 over an area of 18.86858 hectares. The developer has been granted first extension of the formal approval, the validity of which was up to 13th November 2010. The developer needs more time to complete the project and has, therefore, requested for grant of extension. Further the request of the developer for de-notification of 2.16 hectares and additional notification of 4.88156 hectares of land is pending for clarification from the Government of Haryana.

(v) Request of M/s. Ascendant Estates Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for

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IT/ITES at Bondsi, Tehsil, Sohna, District Gurgaon, Haryana, beyond
5th November 2010

The developer was granted formal approval for setting up the above mentioned SEZ, over an area of 15.20 hectares, vide LoA dated 6th November 2006. The SEZ was notified on
2nd May, 2008 over an area of 12.5975 hectares. The developer has been granted first extension of the formal approval, the validity of which was up to 5th November 2010. The developer has requested for further extension stating that the development has been delayed in view of the acquisition of additional land for notification to address the limitations in the master planning of the total project and development.

Item No.44.10: Requests for third extension of validity of formal approvals

(i) Request of M/s. Bajaj Holdings & Investment Limited for third 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 2011

The developer was granted formal approval for setting up the above mentioned SEZ, 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 two extensions. The validity of the second extension is up to 6th April 2011. The developer has requested for further extension to enable them to complete the project. The details of the activities undertaken by the developer towards implementation of the project is at
Annexure - 4. The request of the developer for grant of third extension of the validity of formal approval is placed before the BoA.

Item No. 44.11: Requests for 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. Aurangabad SEZ Limited Gems & Jewellery, 102 hectares Aurangabad, Maharashtra In-principle approval was granted vide LoA dated 7th January 2008. The developer has already been granted first extension, the validity of which is up to 6th January 2011. The developer has stated that the acquisition process is still on and it is closely pursuing with MIDC for acquiring the land and from private land owners. In view of the above the developer has sought one year’s extension of the validity of the in-principle approval.
2. M/s. Nagpur Multi Product SEZ Limited Multi Product, 1000 hectares Nagpur, Maharashtra In-principle approval was granted vide LoA dated 9th January 2008. The developer has already been granted first extension, the validity of which is up to 8th January 2011. The developer has stated that the acquisition process is still on and it is pursuing with MIDC and Ministry for acquiring the land. In view of the above the developer has sought one year’s extension of the validity of the in- principle approval.

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Item No. 44.12: Request of M/s. Indiabulls Realtech Limited a 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, for increase in plant capacity from 1350 MW to 2700 MW

Multi product SEZ at Nasik, Maharashtra being developed by M/s. Indiabulls Industrial Infrastructure Limited was notified on an area of 1006.96 hectares, on
27th October 2009. The request of M/s. Indiabulls Realtech Limited, for co-developer in the aforesaid SEZ, for setting up a 1200 MW Power Plant, was approved in the 37th BoA meeting held on 15th December 2009. Further, in the meeting held on 11th February 2010 BoA had approved the request of M/s. Indiabulls Realtech Limited for enhancing the plant capacity from 1200 MW to 1350 MW. Now, considering the increase in future demand and reduction in cost of power production through optimal utilizations of infrastructure/common facilities, the co-developer proposed increase the capacity of power plant from 1350 MW to 2700 MW. The developer has also assured allocation of additional 101.71 hectares land to facilitate this increase power plant capacity. The co-developer has also stated the increase in the plant capacity will help foster overall industrial development in Maharashtra and greatly contribute towards employment generation in the state. This capacity addition will entail additional investment of 6515 crores and shall give direct employment to 250 persons besides indirect employment to about 2000 persons.

The request of the co-developer for enhancement of the capacity of power plant from 1350 MW to 2700 MW is placed before the BoA.

Item No. 44.13: Request of M/s. Torrent Energy Limited a co-developer in the multi product SEZ at District Bharuch, Gujarat being developed by M/s. Dahej Special Economic Zone Limited, for increasing the capacity of the power plant from 1500 MW to 1600 MW

The above mentioned SEZ was notified over an area of 1718-93-87 hectares, on
20th December 2006. M/s. Torrent Energy Limited, has been granted approval for co- developer in the aforesaid SEZ, for power generation up to 1500 MW and necessary transmission and distribution network, in the BoA meeting held on 22nd September 2008. The co-developer has stated that based on the configuration of the plant and gas turbine selected and looking to the power demand in SEZ and considering rapid industrial growth in SEZ area including PCPIR and DMIC, the company now proposes to install total generation capacity of 1600 MW (4x400 MW CCPP units). TEL has decided to install 3 units of 400 MW totalling to 1200 MW in the first phase and add one more unit of 400 MW in the second phase.

The co-developer has, therefore, requested for grant of approval to its proposal for increasing the Generation capacity for the Power Project from 1500 MW to 1600 MW.

The request of the co-developer is placed before the BoA.

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Item No. 44.14: Requests for change of sector/broad-banding the sector

(i) Request of M/s. Biocon Limited for broad banding of the sector of the SEZ for “Biotechnology” at Anekal Taluk, Bangalore, Karnataka as “Bio-pharmaceuticals” covering biotech and pharmaceutical products

The above mentioned sector specific SEZ for “Biotechnology” at Anekal Taluk, Bangalore, Karnataka was notified on 1st August 2006 over an area of 35.55 hectares. The developer has now requested for broad banding the sector of the SEZ as Bio-Pharmaceutical SEZ to cover both biotech as well as pharmaceutical products. The detailed justification furnished by the developer for broad banding the sector is at Annexure - 5.

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

(ii) Request of M/s. Mahindra World City (Jaipur) Limited for broad banding of the sector of the SEZ for “Handicraft” by including “Textile products, accessories and all handicraft items”

The above mentioned sector specific SEZ for “Handicrafts” at Jaipur, Rajasthan was notified on 6th January, 2009 over an area of 102.7659 hectares. In the BoA meeting held on 18th November 2010 the request of the developer for broad-banding the sector specific SEZ for Handicrafts as sector specific SEZ for Textile products, accessories and all Handicraft items, was considered by BoA and was deferred as the developer was requested to clearly specifying the items related to handicrafts which can then be considered by BoA. The reply of the developer is at Annexure -6.

The request of the developer is for consideration of BoA.

Item No. 44.15: Request of M/s. UMA Exports Pvt. Ltd., a unit in FSEZ, for allowing international trading of pulses from SEZ

M/s. UMA Exports Pvt. Ltd. was granted LoA on 14th October 2008 for processing and export of Masoor Dal in and from the SEZ. Subsequently, the status of the unit was changed from ‘processing unit’ to ‘international trading unit’ of Masoor Dal vide LoA dated
10th November 2008. However, since pulses are in prohibited list of export the approval granted to the unit was suspended. The unit has been pressing hard to allow them to remove the suspension on international trading pulses stating that it will be importing pulses and will not procure from DTA. DC, FSEZ, had also requested for a clarification in the matter.
Accordingly, the matter was placed before BoA in the meeting held on 9th April 2010, wherein, the Board noted that these are very sensitive products and there is requirement of clear policy for import and export of these products. Pending the availability of such policy, the Board decided to defer the request of M/s. UMA Exports Private Limited.

It is submitted that an amendment has been made in the SEZ Rules on
7th September 2010, whereby, the following proviso has been inserted after the second proviso of Rule 27 (1) of the SEZ Rules:-

“Provided also that items prohibited for import can be procured by a Special Economic Zone unit or Developer from a

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place outside India to the Special Economic Zone with the prior approval of Board of Approval”,

In view of the above mentioned amendment, the request of M/s. UMA Exports Private Limited for allowing processing and re-exporting of pulses from its unit in FALTA SEZ is placed before the BoA for consideration.

Item No. 44.16: Request of M/s. Adani Wilmar Limited, for setting up Pulses Processing unit in multi product SEZ at Mundra, Kutch, Gujarat, being developed by M/s. Mundra Port and Special Economic Zone Limited (MPSEZL)

Multi Product SEZ at Kutch, Gujarat by M/s. Mundra Port and Special Economic Zone Limited stands notified over an area of 6472.8684 hectares. M/s. Adani Wilmar Limited has proposed to set up a pulses processing unit in the SEZ. The manufacturing capacity of the proposed unit would be 400MT/day and cleaning activity would be about 200MT/day. It has been stated that the unit is expected to generate Net foreign exchange equivalent of about Rs. 409 crores over 5 year and employment of about 116 persons. The unit has made an application to the DC, Mundra Port SEZ

It is submitted that an amendment has been made in the SEZ Rules on 7th September 2010, whereby, the following proviso has been inserted after the second proviso of Rule 27 (1) of the SEZ Rules:- “Provided also that items prohibited for import can be procured by a Special Economic Zone unit or Developer from a place outside India to the Special Economic Zone with the prior approval of Board of Approval”,

Accordingly, the request of M/s. Adani Wilmar Limited for setting up of a unit for pulses processing, in the Mundra Port SEZ, is placed before the BoA for consideration

Item No. 44.17: Request of M/s. Mundra Port SEZ Limited, for warehousing of transhipment & other cargo

Multi Product SEZ at Kutch, Gujarat by M/s. Mundra Port and Special Economic Zone Limited stands notified over an area of 6472.8684 hectares. The developer has proposed to provide warehouse services in the SEZ to the clients who want to make India as one of their regional aggregation and distribution centers. The developer proposes to handle and warehouse the goods of foreign suppliers/buyers and dispatch them as per owner’s instructions as provided in Rule 18(5), so that the foreign entities could carry out their transhipment activities without any hassle. As part of this process, the developer has also proposed to provide incidental services such as packaging, labelling, polishing, blending etc. As some of the products intended to be stored as warehouse keeper are either prohibited for export and/or are restricted/canalized, in terms of Rules 26, 27 and 45 of SEZ Rules, 2006, the developer has requested for BoA’s approval for the same. The product for which approval is being sought are as under:-

S. No. Product description Policy for Import Policy for Export 1. POL products (HSD, LDO, Motor Spirit, Aviation Turbine Fuel, Naptha) State Trading enterprises Free 2. POL products (crude Oil) Free State Trading

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enterprises 3. Agri products (Various Pulses, Beans, Chickpeas, Lentils, Split, Tur, Guar Seeds etc) Free Prohibited 4. Agri products (Rice-non basmati, Wheat) Restricted/STE Prohibited 5. Fertilizers (Urea) STE Restricted 6. Fertilizers (DAP) Free Restricted

The detailed request of the developer is at Annexure- 6A.

The request is placed before the BoA for consideration.

Item No. 44.18: Requests for extension of LoP of units beyond 4th year

(i) Requests of M/s. Mastek Limited a unit in M/s. Mahindra World City SEZ, Chennai for extension of LoP beyond 4th December 2010

M/s. Mastek Limited was granted LoP for setting up of a unit for Software Development and IT Related services in the above mentioned IT/ITES SEZ. The unit has been granted extension from time to time by the DC MEPZ. The last extension granted to the unit was valid up to 4.12.2010. The unit has requested for further extension of the validity of LoP for a period of 6th months. The unit has stated that it had started construction activities of its offshore Development Centre building in May 2007 and completed the same by March 2009. Further, it is unable to start to the production due to the impact of recession. The unit has also stated that it has taken a number of taken steps to attract business and is hoping to get some openings in the global market, which after materialization should enable it to start operations by May 2011.

Rule 19(4) of SEZ Rules, 2006 have been amended vide notification dated 10.11.2010. The amendment has enabled BoA to grant further extension of the validity of the LoP of a unit, beyond fourth year (one year, at a time) on the request of the entrepreneur.

In view of the above position the request of the unit for grant of further extension of LoP for a period of 6th months is placed before the BoA for consideration.

(ii) Requests of M/s. Wipro Limited a unit in M/s. Mahindra World City SEZ, Chennai for extension of LoP beyond 28th November 2010

M/s. Wipro Limited was granted LoP for setting up of a unit for in the above mentioned IT/ITES SEZ vide LoP dated 29.11.2006. The unit has been granted extension from time to time by the DC MEPZ. The last extension granted to the unit was valid up to September 2011. The unit has stated that it has completed construction of work and had developed around 280000 sqft. area and has made a total investment of approximately Rs. 900 million. The unit has stated that it is expecting to commence operations shortly.

Rule 19(4) of SEZ Rules, 2006 have been amended vide notification dated 10.11.2010. The amendment has enabled BoA to grant further extension of the validity of the LoP of a unit, beyond fourth year (one year, at a time) on the request of the entrepreneur.

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In view of the above position the request of the unit for grant of further extension of LoP up to 30th September 2011 is placed before the BoA for consideration.

(iii) Requests of M/s. Zydus BSV Pharma Private Limited, a unit in the pharmaceutical SEZ at Ahmedabad, Gujarat being developed by M/s. Zydus Infrastructure Pvt. Ltd, for extension of LoP beyond 31st December 2010

M/s. Zydus BSV Pharma Private Limited was granted LoP for setting up of a unit for in the above mentioned pharmaceutical SEZ vide LoP dated 02.01.2007. The unit has been granted extension from time to time by the DC KASEZ. The last extension granted to the unit was valid up to 31st December 2010. The unit has stated that it is engaged in the manufacturing of finished products for exports of very high quality and complex nature for these highly regulated markets of US, EU & Japan, the timeline leading to commencement of exports is 5-6 years. The unit has, therefore, grant of extension two years to enable it to conclude all its regulatory requirements and establish profitable commercial production for exports. The detailed justification furnished by the unit is at Annexure - 7.

Rule 19(4) of SEZ Rules, 2006 have been amended vide notification dated 10.11.2010. The amendment has enabled BoA to grant further extension of the validity of the LoP of a unit, beyond fourth year (one year, at a time) on the request of the entrepreneur.

In view of the above position the request of the unit for grant of further extension of LoP beyond 31st December 2010 is placed before the BoA for consideration.

Item No. 44.19: Requests for extension/renewal of Letter of Approval of M/s. Sameer Industries, KASEZ

M/s. Sameer Industries was granted Letter of Approval on 23.09.1995 for setting up a unit in Kandla SEZ for manufacturing of recycled items from imported scrap/old and use machinery items. The unit started the commercial production in the year 1996. The validity of the LoP of the unit has expired on 31.10.2010. The unit has requested for further extension of the LoP for period of 5 years from the expiry of last extension. A detailed note on the case, as received from DC, KASEZ, is at Annexure – 8.

Under Sub-Rule (4) of Rule 18 of the SEZ Rules, 2006, the request for extension of LoP of the units engaged in import of used goods for recycling shall be decided by the Board.

Accordingly, the request of the unit is placed before the BoA for consideration.

Item No. 44.20: Requests for construction of boundary wall

(i) Request of M/s GMR Hyderabad Aviation SEZ Limited for construction of chain linked fencing and masonry wall in the sector specific SEZ for aviation at Mamidipalli village, Hyderabad, Andhra Pradesh

Sector specific SEZ for Aviation sector at Mamidipalli village, Hyderabad, Andhra Pradesh by M/s. GMR Hyderabad Aviation SEZ Limited was notified on 20th October 2009 over an area of 101.92 hectares.

Rules 11 (2) of SEZ Rules 2006 provides that the processing area of the SEZ shall have specified entry and exit points and be fully secured by taking such measures as

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approved by the Board of Approval. The second proviso of the Rules 11 (2) provides that in case the developer proposes to create two hundred and forty centimetre high wall with top sixty centimetres being barbed wire fencing and single entry and exit point, no separate approval shall be required.
Currently 186.5 acres of the land has been approved as processing area out of total notified 251.85 acres. The developer has requested for approval for chain linked fencing of the processing area consisting of 186.5 acres. The developer has stated that the chain linked fencing instead of compound wall will allow it to scale up the processing area to its full 251.85 acres, in future, as the investments in the Aerospace and Aviation industry are expected to increase manifold. The developer has also proposes to build the masonry boundary wall on eastern and western side of the SEZ. The developer has also stated that the southern side of the SEZ is already secured by masonry wall which meets the requirements of the SEZ rules as well as the Bureau of Civil Aviation Security. The developer has stated that the SEZ on one side is already fenced by the airport boundary wall with CISF Security posted along various points of the Airport. The airport area itself, within which the SEZ falls, is a secure area and is heavily guarded. The developer has, therefore, made the following requests:-

(i) Construction of Chain linked fencing on Northern side
1391.5 Running Meters (RM) (ii) Construction of Masonry Wall on Eastern and western side
984 Rm & 740 Rm (East & West side respectively

DC, VSEZ, has recommended the request of the developer and has requested for placing it before the BoA as per Rule 11(2) of the SEZ Rules 2006. The request of the developer along with the drawing for proposed chain linked fencing is at Annexure - 9.

(ii) Request of M/s Bhartiya International SEZ Limited for construction of chain linked fencing of 240 cm height, with top 60 cm being barbed wire fencing, around the processing area, measuring 5 KM in the sector specific SEZ for Leather & Leather products at Tada Mandal, Nellore District, Andhra Pradesh

The above mentioned SEZ was notified on 4th May 2009 over an area of 101.37 hectares. Rules 11 (2) of SEZ Rules 2006 provides that the processing area of the SEZ shall have specified entry and exit points and be fully secured by taking such measures as approved by the Board of Approval. The second proviso of the Rules 11 (2) provides that in case the developer proposes to create two hundred and forty centimetre high wall with top sixty centimetres being barbed wire fencing and single entry and exit point, no separate approval shall be required.

The developer has indicated that it would like to secure the boundary of the processing area of the SEZ, which is approximately 5 KM, by way of chain linked fencing instead of a boundary wall. The developer has stated that the contour of the area/land has been thoroughly surveyed and observed that the rain water flows from the SEZ processing area into the natural water body adjoining the land, which serves as a feeder water source to the paddy fields adjoining the water body, up to down and the area of the SEZ is sloping towards main area. The erection of a compound wall will act as a barrier to the natural flow of water to the water body thereby reducing the water catchment for the agriculture in the region. The developer has, therefore, sought approval for construction of chain linked fencing of 240 cm height, with top 60 cm being barbed wire fencing, around the processing area, measuring 5 KM. The developer has intimated that the entire processing area of 51.87

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hectares will be enclosed through the fencing. DC, VSEZ, has recommended the request of the developer and has requested for placing it before the BoA as per Rule 11(2) of the SEZ Rules 2006.

Item No. 44.21: Request of M/s. Larsen & Toubro Limited for temporary 2nd gate during construction activities in the sector specific SEZ for IT/ITES at Vadodara, Gujarat

The above mentioned SEZ was notified on 18th November, 2008 over an area of
10 hectares. The developer has requested for one additional temporary entry/exit gate in addition to the already existing one gate for a period up to 31st March 2012. A detailed note on the proposal received from DC, KASEZ, is at Annexure - 10.

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

Item No. 44.22: Request of M/s. Hansen Drives Limited for grant of approval for undertaking repair/reconditioning etc. of defective gear box units manufactured by third party (Indian and overseas) manufacturers

M/s. Hansen Drives Ltd. was issued LoA on 25.09.2007 in the sector specific SEZ for Hi-tech Engineering sector developed by M/s. Suzlon Infrastructure Ltd. For the manufacture and rendering services for Gear Units for Wind Turbines. In the meeting held on 23rd February 2009, BoA had granted approval to the unit for undertaking repair of the gear units manufactures by it and its parent company (Hansen Transmission International, Belgium). BoA, however, had rejected the request of the unit for undertaking repair of gear boxes manufactured by any third party – Indian and overseas manufacturer and for sending the repaired gear boxes back to the customers located in DTA. The unit has once again requested for grant of approval for:-

(a) undertaking repair/re-engineering activities of gear boxes (manufactured by an overseas manufacturer) received from DTA and sending it back to DTA after completion of repair/re-engineering activities; and

(b) undertaking repairs of gear boxes (manufactured by any DTA manufacturer) received from DTA and sending the gear units manufactured by third party manufacturers (domestic and overseas) and sending it back to DTA after completion of repair/re-engineering activities

The request was considered in the BoA meeting held on 18th November 2010 and was deferred for clarifications by the unit on the likely quantum of gear boxes from various sources which will be repaired/ serviced, the methodology of payment for the services and the issue relating to payment of duty in respect of gear boxes coming in from DTA.

The information furnished by the unit is at Annexure - 11. The request is placed before the BoA for consideration.

Item No. 44.23: Appeals before BoA

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(i) Appeal of M/s. Erba Diagnostics Mannheim GmbH against rejection of the request for setting up a unit, in SEEPZ Special Economic Zone, Mumbai (Deferred in the BoA meeting held on 18th November 2010)

M/s. Erba Diagnostics Mannheim GmbH had submitted application for setting up a unit in SEEPZ SEZ for manufacturing an export of medical instruments viz Blood Testing Analysers and Spare Parts and Accessories. The request of M/s. Erba Diagnostics Mannheim GmbH was considered by the Approval Committee in its meeting held on 26.03.2010 and was rejected as committee noted that the promoter has been penalized under FT (D&R) Act for violation. The decision of the Approval Committee was conveyed vide letter dated 12.04.2010.

Aggrieved by the decision of the Approval Committee, M/s. Erba Diagnostics Mannheim GmbH had preferred an appeal before the BoA. The Board considered the appeal. The appellant was not present. The Board after taking into account the recommendations made by DC SEEPZ, rejected the appeal.

M/s. Erba Diagnostics Mannheim GmbH have now made a representation stating that its appeal was rejected for non-appearance of the Appellant on account of some confusion even when the authorized representative was present there. Therefore, they have requested that they may be given an opportunity to present their case before the BoA. The justification submitted by M/s. Erba Diagnostics Mannheim GmbH is at Annexure – 12.

The appeal is placed before the BoA for re-consideration.

(ii) Appeal of M/s. Polychem Adhesives Private Limited, a unit in Surat SEZ, against rejection of its request for extension of the validity of its LoP (Deferred in the BoA meeting held on 18th November 2010)

M/s. Polychem Adhesives Private Limited was granted LoP on 21.07.2005 for setting up a unit in Surat SEZ for manufacturing Textile auxiliaries, Finishing Chemicals etc., Adhesive & Chemicals thereof. The validity of the LoP was extended from time to time by DC, Surat SEZ. The last extension was valid up to 31.03.2010. The unit had requested DC, Surat SEZ for extension of the validity of the LoP up to 31.12.2010. The DC vide letter dated 08.09.2010 had not granted further extension as the unit had not commenced production/authorized operation within the validity period or the extended validity period as required under Rule 19(4) of the SEZ Rules. It was also communicated to the unit that the LoP stands lapsed w.e.f. 31.03.2010, as per the provisions of rule 19(5) of the SEZ rules.

Aggrieved by the above decision, M/s. Polychem Adhesives Private Limited has preferred an appeal before the BoA for extension of LoP up to 31.12.2010. The justification of the unit is at Annexure -13.

The appeal is placed before the BoA for consideration.

(iii) Appeal of M/s. Marval India, a unit in Surat SEZ, against rejection of its request for extension of the validity of its LoP (Deferred in the BoA meeting held on
18th November 2010)

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M/s. Marvel India was granted LoP on 24.03.2006 for setting up a unit in Surat SEZ for manufacturing Textile Machineries (Water Jet) and Mechanical Components (Auto components). The validity of the LoP was extended from time to time by DC, Surat SEZ. The last extension was valid up to 23.03.2010. The unit had requested DC, Surat SEZ for further extension of the validity of the LoP. The DC vide letter dated 28.04.2010 had not granted further extension as the unit had not commenced production/authorized operation within the validity period or the extended validity period as required under Rule 19(4) of the SEZ Rules. It was also communicated to the unit that the LoP stands lapsed w.e.f. 23.03.2010, as per the provisions of rule 19(5) of the SEZ rules.

Aggrieved by the above decision, M/s. Marvel India has preferred an appeal before the BoA for further extension of LoP up to 23.03.2010. The justification of the unit is at
Annexure - 14.

The appeal is placed before the BoA for consideration.

(iv) Appeal of M/s. ATC Tires Private Limited, a unit in SIPCOT SEZ, Tamil Nadu, against the order of DC, MEPZ, rejecting its request for broad banding of LoP

M/s. ATC Tires Private Limited was granted LoP on 03.07.2008 for setting up a unit in SIPCOT SEZ, Tamil Nadu, for Manufacture of new pneumatic tyres of rubber, tyre flaps; and inner tubes of rubber. The unit has commenced commercial production on 01.12.2009. The unit had requested DC, MEPZ, for approval and inclusion of Tyre, Inner Tube, Tyre Flap, and Rim (wheel) i.e. Tyre assembly (semi/complete set) as an authorized operations in the LoA. The request of the unit was considered in the UAC held on 26th November 2010 and was rejected as the UAC felt that the request amounts to trading and not manufacturing. The decision of the UAC was conveyed to the unit vide letter dated 1st December 2010

Aggrieved by the above decision, M/s. ATC Tires Private Limited has preferred an appeal before the BoA for inclusion of ancillary activity of tyre assembly [(set of Tyre+Tube+Flap+Rim) or (set of Tyre+Tube+Flap) or (Set of Tyre+Tube) or (set of Tyre+Flap) (Tyre only)] as a authorized operations in the LoP. The justification of the unit is at Annexure - 15.

The appeal is placed before the BoA for consideration.

(v) Appeal of M/s. Hansen Drives Limited, a unit in Synefra Engineering & Construction Limited SEZ, Tamil Nadu, against the order of DC, MEPZ, rejecting its request for broad banding of LoP

M/s. Hansen Drives Ltd. was issued LoA on 25.09.2007 in the sector specific SEZ for Hi-tech Engineering sector developed by M/s. Suzlon Infrastructure Ltd. for the manufacture and rendering services for Gear Units for Wind Turbines. The LoA was subsequently amended to undertake repair/re-engineering and reconditioning of gear box manufacture and also to include services relating to trading in spare parts of gear box units for wind turbines. The unit had sought approval for inclusion of “Mandap Keeper’s Services” as authorized service. The request of the unit was considered by the Unit Approval Committee (UAC) in its meeting held on 26th November 2010 as the UAC felt that the requested service is in the nature of personal consumption. The decision of the UAC was conveyed to the unit vide letter dated 2.12.2010.

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Now, aggrieved by the decision of the UAC, the unit has preferred an appeal before the BoA for approval for inclusion of “Mandap Keeper’s Services” as authorized service. The brief facts of the case along with the grounds on which appeal has been filed as furnished by the unit is at Annexure - 16. The appeal is placed before BoA for consideration.

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