Minutes of the 82nd meeting of Approval Committee

Minutes of the 82"? Unit Approval Committee Meeting of Kandla SEZ held on 05.06.2015 at KASEZ.11:30 hrs under the Chairmanship of Shri UpendraVasishth, Development Commissioner, a a i a ee ea Cee

Following were present:

1. Shri Krishan Kumar : Joint Development Commissioner, KASEZ 2. Shri Niranjan Godara : Asstt. Commissioner of Customs, Rep. of 3. Commissioner of Customs, Kandla 4. Shri Dilip Kumar : ITO, Ward-I, Gandhidham Shri R. G. Khairkar : FTDO, Rep. of Jt. DGFT

Absentees:

1.Director (Banking) 2.SDM 2.Jt. Commissioner, Income Tax. 3.GM, DIG, Bhuj.

Review/Confirmation of the minutes of last meeting (81°UAC) of the Approval Committee:

Minutes of the last meeting ofApproval Committee were confirmed.

• 82.1 New proposals:

82.1.1 M/s. Rusan Pharma Ltd (Unit-I), Mumbai:

The proposal was for setting up a manufacturing unit in Kandla Special Economic Zone for manufacturing activity of Transdermal Patches (Pharmaceutical Products) (HS Code 3004). Cap. Sajith Nair, representative of the Company appeared before the Committee and explained about their proposal. They will be manufacturing mostly Anti Nicotine Patches. He stated that they will be utilizing the excess space available with their existing unit M/s. Rusan Pharma Ltd. in the Zone. The Committee noted that their existing unit in the Zone, viz. M/s. Rusan Pharma Ltd., KASEZ is having a good track record with a positive NFE of Rs.2858.49 lakhs for the year 2013-14. The FOB value of exports projected for five year period is Rs.56400.00 lakhs with a Net Foreign Exchange Earnings of Rs.4882.00 lakhs for this new project.

Committee approved the proposal subject to standard terms and conditions and also informed the applicant that for the premises which they will be utilizing from their existing premises in KASEZ shall have the new rent applicable.

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82.1.2 M/s. Genetic Industries Pvt. Ltd., Vadodara:

Nobody appeared on behalf of the firm to explain the project before the Committee. The Committee, therefore, decided to defer the proposal.

82.1.3 M/s. Shreeji Polymers, KASEZ.

The proposal was for setting up a warehousing service unit in Kandla SEZ under Rule 18(5) & 76 of the SEZ Rules. Shri Sheetal Jain, Representative of the firm appeared before the Committee and explained about the proposal. He has stated that they will not import or store any type of second hand goods into the warehouse. The project will be implemented at their existing premises i.e. Plot No.269/A, Sector-IV. FOB value of exports projected for 5 year period is Rs.375 lakhs with a NFE ofRs.375 lakhs.

The Committee approved the proposal subject to standard terms and conditions and also on the condition that they shall not import/warehouse any type of used or second-hand goods. Further, for the premises to be used for warehousing, new rent shall be applicable, and it should be clearly demarcated and got approved from Development Commissioner.

82.1.4 M/s. Central Warehousing & Trading, Mumbai.

Nobody appeared on behalf of the firm to explain the proposal before the Committee. The Committee, therefore, decided to defer the proposal.

82.1.5 M/s. Lalit Stainless Steel Pvt. Ltd., KASEZ.

M/s. Lalit Stainless Steel Pvt. Ltd., is an existing unit in KASEZ. Mr. Madhusudan K, Director of the company appeared before the Committee and explained about their proposal. He stated that they wanted to add the warehousing activity into their existing LOA, They have sufficient space. He has stated that they will not import or store any type second hand goods in the warehouse. FOB value of exports projected for 5 year period for the additional activity is Rs.2890 lakhs with a NFE of Rs. 1400 lakhs.

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The Committee noted that they are the first unit in the Zone and were also felicitated in the Golden Jubilee Celebrations of KASEZ.

The Committee approved the broad-banding proposal subject to standard terms and conditions and also on the condition that they shall not import/warehouse any type of used or second-hand goods. Further, the unit should maintain separate accounts for manufacturing activity and warehousing activity and figures of both the activities should be shown separately in the APR and Net Foreign Exchange for both the activities should be positive, They will also clearly demarcate warehousing area & get it approved from office of the Development Commissioner.

82.1.6 M/s. Mukesh Marketing Pvt. Ltd., New Delhi:

The proposal is for setting up a warehousing service unit under Rule 18(5) & 76 of the SEZ Rules in the Kandla SEZ. Representative of the firm appeared before the Committee and explained about the proposal. They are already in the business and their turnover last year was Rs.125 Crores. He has stated that they will not import or store any type second hand goods into the warehouse. They will be importing polymers, granules, etc. which fall under free category of import FOB value of exports projected for 5 year period is Rs.289 lakhs with a NFE of[Rs.289][lakhs.]

The Committee approved the proposal subject to standard terms and conditions and also on the condition that they shall not import/warehouse any type used or second-hand goods. For the premises, they were asked to participate in the open bidding for getting suitable space for their project.

82.2. Broad Banding request in existing LoA & other miscellaneous cases:

82.2.1 M/s. Gimpex Ltd, KASEZ

They are an approved unit in KASEZ for manufacturing activity. Their request was for change of constitution of the company from Public Limited to Private Limited. It was noted that necessary changes have been made in the record of Registrar of Companies for the change of constitution of the company from Public Limited to Private Limited and also Page 3 of 6 ML

obtained approval from the Registrar of Companies. Accordingly, the Committee approved the change of constitution of the Company from “M/s. Gimpex Ltd.” to M/s.Gimpex Private Limited”.

The Committee noted that there is no change in the Directors and share pattern and these are taken on record the change of constitution of the company,

79.2.2 M/s. Oswal Polymers, KASEZ.

M/s.Oswal Polymers is approved unit for manufacturing of recycling of scrap/waste into plastic granules, agglomerates, flakes, pallets bars, power and other plastic items. Mr. Mukesh Parekh, Partner of the firm appeared before the Committee and explained about their proposal. Their request is for approval for undertaking manufacturing activity of BSS Grade Castor Seed Oil, Commercial Grade, Pale Pressed and various other grades of Castor oil, Castor seed and castor de-oiled cake”. He has mentioned that earlier their LoA was broad-banded for this activity but the said permission was suspended by the Zone Administration based on instruction No.69 dated 4/11 /2010. Now, they seek a fresh approval for above mentioned products. FOB value of export projected for 5 year period is Rs.31203.90 lakhs with a NFE of Rs.30583.51 lakhs. He stated that no additional space is required and the activity will be carried out from their existing premises.

Committee after deliberations approved their proposal as Unit-II and informed the applicant that area should be demarcated for this project and new rent shall be applicable.

82.2.3 M/s. High Seas Trading Corporation, KASEZ.

M/s High Seas Trading Corporation, KASEZ is approved unit under taking trading activity as per LoA dated 28/4/2006. The proposal is for change of Partnership. They have also submitted Reconstitution Deed of Partnership. The Committee noted the change as under:-

Name of the Partner Existing Share Revised Share

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The Committee noted that there is no induction of new partners but only changes in the ratio of shares between the existing partners and approved the same.

82.2.4 M/s. One World, KASEZ.

M/s. One World is an approved unit for manufacturing activity of refurbishing, re-engineering and reconditioning of IT equipment, etc. Their present proposal is for adding warehousing service activity under Rule 18(5) & 76 of the SEZ Rules to their existing LOA. The representative of the unit appeared before the Committee explained about their proposal. He has stated that they will be continuing with the existing activity also. They have sufficient area and no additional space is required. FOB value of exports projected for five year period for the additional activity is Rs.152.47 lakhs with a NFE of Rs.152.47 lakhs.

The Committee approved the broad-banding proposal subject to standard terms and conditions and also on the condition that they shall not import/warehouse any type of used or second-hand goods. Further, the unit should maintain separate accounts for manufacturing activity as well as trading activity and figures of both the activities should be shown separately in the APR and Net Foreign Exchange for both the activities should be positive and also clearly demarcate the area between the two activities. The two area should separately meet FSI requirement, if applicable.

82.2.5 M/s. Renew Plastics, KASEZ (taken up as supplementary agenda):

M/s. Renew Plastics is an existing unit in KASEZ engaged in the manufacturing activity of Plastic granules/shredding/grinding pieces etc. from waste/scrap/discarded/obsolete plastic items. The unit had submitted a fresh Partnership deed registered with Registrar of firms in Form-G on 11/5/2012. The proposal was discussed in the 58 UAC held on 31/7/2013 wherein the case was deferred till the policy on plastic recycling units is finalized by the MoC. The unit was following up the matter since then for approval of the change in partnership. After announcement of the plastic policy, the proposal

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was discussed in the 74" UAC held on 11/11/2014 and the Committee approved the same subject to the firm paying new lease rent from the date of UAC ice. 11/11/2014.

The unit’s plea is that their request was pending with the DC’s office from 11/5/2012 and at that time no revised rent was applied where there is change of Partners.

The Committee deliberated the issue and come to a conclusion that the unit applied in 2012 for change in Partnership, which was approved in 2014 and therefore, no new rent is applicable in their case. It was also decided that issues related to rent will be decided is KASEZ Authority only.

The meeting ended with vote of thanks to the Chair.

(Upendra Vasishth) Development Commissioner, Kandla Special Economic Zone.

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