Minutes of the 6th meeting of Approval Committee

Minutes of the 6th meeting of Approval Committee (2009-10) held on 25/08/2009 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 Jeetesh Nagori Jt.Commissioner (Cus) 3 Shri S.K. Sharma Jt. DGFT 4 Shri B.N. Pani Asstt.Collector & SDM 5 Shri Zinzuwadia GM, DIC

Absent:

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

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. Grace Enterprises, Maharashtra:

Proposal is to set up a unit for Sandal woods pcs, sandal wood chips, sandal wood flacks and sandal wood dust/powder. Mr. Sohail Punjani, Proprietor appeared for interview and put forth the following clarifications:-

¾ They will get the sandalwood from Dubai and make sandal wood pcs, flacks, chips, and sandal wood dust/powder. They have a buy back agreement. ¾ Project cost is Rs.4.50 lakhs, which will be met from promoter’s contribution. ¾ Requirement of space about 500 sq.mtrs.

  Observations/clarifications the Committee: 

¾ FOB value of the of exports for the 5 year project period is Rs.240 lakhs with a NFE of Rs.240 lakhs.

Requirement of space about 500 sq.mtrs.

  Observations/clarifications the Committee: 

¾ FOB value of the of exports for the 5 year project period is Rs.240 lakhs with a NFE of Rs.240 lakhs. ¾ It was informed that due to shortage of open land/built up space, promoter was informed that the Zone Administration will be able to give them one Shed No.226 spl.type having electricity dues of previous occupant. Promoter agreed to pay the electricity dues. It was made clear to him that the amount paid by him towards the electricity dues will not be adjusted against their lease rentals.

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

(ii) M/s. Rad Elan Distributors, New Delhi:

Proposal is to set up a unit for repair, refurbishment and recycling of printer cartridge and computer accessories. Mr. Amit Goel, Promoter appeared for interview and put forth the following clarifications:-

¾ They will bring used printer cartridges for refurbishing, repair and filling in SEZ. ¾ Presently having a unit in Hong Kong for the same activity. ¾ Export to Asian countries, China, Thailand, Philippines. ¾ Value addition stated to be 30%. Ink for filling will be procured from domestic market. ¾ Project cost is Rs.68.40 lakhs, which will be met from own sources and borrowings from Bank. ¾ Requirement of space about 1200/800 sq.mtrs.

  Observations/clarifications the Committee: 

¾ FOB value of the of exports for the 5 year project period is Rs.725 lakhs with a NFE of Rs.278 lakhs.

rement of space about 1200/800 sq.mtrs.

  Observations/clarifications the Committee: 

¾ FOB value of the of exports for the 5 year project period is Rs.725 lakhs with a NFE of Rs.278 lakhs. ¾ It was informed that due to shortage of open land/built up space, promoter was informed that the Zone Administration will be able to give them one Shed No.225 spl.type having electricity dues of previous occupant. Promoter agreed to pay the electricity dues. It was made clear to him that the amount paid by him towards the electricity dues will not be adjusted against their lease rentals.

Proposal was approved subject to standard terms and conditions.. (Action: IA-I Section) (iii)M/s. Gimpex Ltd., Chennai:

Proposal is to set up a unit for processing of mill scale. Mr. Sudesh Sansgiry, Sr. General Manager along with other officers appeared for interview and put forth the following clarifications:-

¾ They have explained about the Mill Scale. This is a waste generated by the steel rolling mills or from steel industry and the iron content will be 62-69%. After procurement of this, they will remove impurities and export. ¾ Used in manufacture of electrodes, roads, etc.
¾ They are already exporting it for the last two years and export is around 2- 4 lakh T. ¾ Total cost of the project is Rs.91.04 lakhs, which will be promoters capital and internal accruals. ¾ Requirement of space about 12144 sq.mtrs.

e last two years and export is around 2- 4 lakh T. ¾ Total cost of the project is Rs.91.04 lakhs, which will be promoters capital and internal accruals. ¾ Requirement of space about 12144 sq.mtrs.

  Observations/clarifications the Committee: 

¾ FOB value of the of exports for the 5 year project period is Rs.15624 lakhs with a NFE of Rs.15624 lakhs.

• 3 - ¾ It was informed to the applicant that there is no land available as per their requirement and they will be kept in the waiting list, which they have agreed.

Proposal was approved subject to standard terms and condition and also on the condition that land will be allotted only as per the availability and they will be kept in waiting list.

(Action: IA-I Section) (iv) M/s. Crescent Organics Pvt. Ltd., Mumbai:

Proposal is to set up a unit for processing of Manufacturing and trading of chemicals, solvents, petrochemicals, polymer products. Mr. Nitin Shah, authorized representative of the applicant company appeared for interview and put forth the following clarifications:-

¾ He briefly explained about their company through a slide show. They are established in 1964 and their group turnover is about Rs.1000 crores. ¾ They will be setting up a drumming plant in SEZ. . ¾ Total cost of the project is Rs.125 lakhs, which will be met from promoters share capital. ¾ Require a built up space of about 4500 sq.mtrs.

  Observations/clarifications the Committee: 

¾ FOB value of the of exports for the 5 year project period is Rs.117097 lakhs with a NFE of Rs.52994 lakhs.

t up space of about 4500 sq.mtrs.

  Observations/clarifications the Committee: 

¾ FOB value of the of exports for the 5 year project period is Rs.117097 lakhs with a NFE of Rs.52994 lakhs. ¾ It was informed to the applicant that there is no built up space available as per their requirement. It was further informed to him that a piece of land admeasuring 648 sq.mtrs. (area of demolished sheds 161-162) is available. He agreed to take the said land to begin their operpations in SEZs and stated that as and when the land/built-up space is available they may be considered for allotment to do the activities in full swing..

Proposal was approved subject to standard terms and condition.

(v) M/s. Om Drishian International Ltd., Delhi:

Proposal is to set up a unit for Manufacturing of Stainless Steel Circles and trading of garments, plastic products, etc. Mr. Naresh Kumar Jain, Director appeared for interview and put forth the following clarifications:-

¾ They will be manufacturing stainless steel circles and sinks. ¾ Trading of kitchen wares, garments, plastic materials, etc. both imported as well as procured domestically.
¾ Total cost of the project is Rs.150 lakhs, which will be met from bank loan and share holders fund. ¾ Require space of about 3000 sq.mtrs.

  Observations/clarifications the Committee: 

¾ FOB value of the of exports for the 5 year project period is Rs.2454.42 lakhs with a NFE of Rs.1932.35 lakhs.

space of about 3000 sq.mtrs.

  Observations/clarifications the Committee: 

¾ FOB value of the of exports for the 5 year project period is Rs.2454.42 lakhs with a NFE of Rs.1932.35 lakhs.

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¾ It was informed to the applicant that there is no land available and that the Zone Administration will be in a position to allot them a built up space of about 500 sq.mtrs. (Shed No.355), which they have agreed.

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

(vi) M/s. Syndicate Printers Ltd., Noida:

It was noted that the LOA has been issued to them mon 13/7/2009. Their present request is amendment to the LOA i.e. the authorized activity specified in the LOA.
Unit clarified that they are not going to manufacture paper and the activity proposed to be undertaken is “manufacturing activities of all types of printed and un-printed paper, film and foil products, including stamps, tickets, tags, bands, labels, stickers, cartons, plastic cards, holographic foils, etc. falling under the Chapter heading No.48, 49, 39 and 56”.

It was agreed to amend the LOA as requested by the unit. (Action: IA-I) (III)General:

Inadequate supply of water by the Gujarat Water Supply & Sewerage Board was discussed with the Asstt.Collector and SDM and requested his intervention in the matter. However, Asstt. Collector and SDM stated that there is scarcity of water in the Kutch District and that SEZ should make their own arrangement for water supply and consider setting up a desalination plant.

DC 26-08-2009