Minutes of the 99th meeting of Approval Committee

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Minutes of the 99th Unit Approval Committee Meeting of Kandla SEZ held on 07.07.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, -Development Commissioner, Kandla Special Economic Zone. a

Following were present:

1. Shri. Krishan Kumar : Joint Development Commissioner, KASEZ. 2. Shri. Pradeep Sharma : Assistant Commissioner, Customs, Kandla, Gandhidham- Representative of

cou Commissioner of Customs Kandla.

3. Shri. R. G. Khairkar : Foreign Trade Development Officer, Rep. of Jt. DGFT, Rajkot.

4. Shri.Dilip Kumar : Income Tax Officer, Income tax Office — Representative of Additional Commissioner of Income Tax.

5. Shri.R.R.Virda, ; Assistant Executive Engineer, GPCB, Kutch (East) Gandhidham

Absentees:-

1. Director (Banking)

   • 2, SDM

• _ 3. Representative from DIC, Bhuj

Review/Confirmation of the minutes of last meeting (98 UAC) of the Approval Committee:.

Minutes of the last meeting of Approval Committee was confirmed,

99.1 NEW PROPOSALS TO SET UP UNITS IN KASEZ AGENDA ~ Item No. 99.1.1

||M/s|Kamna Tobacco Private Limited|Kamna Tobacco Private Limited||:|
|---|---|---|---|---|---|
|||Their proposal is for setting up a unit in Kandla Special|||Economic|
||Zone|for manufacturing Activity ofthe following items:||||
|||SiNo.|[Items<br>_|ITC (HS) Code|3|
|,|||Spit Tobacco (Khaini|24039910|‘|
||||Gutkha<br>a|24039910||
|||||21069020||
|||4||. Filter Khaini|24039910||
|||5)|zarda|24039930.||

Their proposal is for setting up a unit in Kandla Special Economic Zone for manufacturing Activity of the following items:

Shri, Surendra Chhajer, Director, Ritesh K Patawari. Marketing Head Exports and Shri. R.R.Dave, Consultant, appeared before the approval Committee to explain their proposal. Yo Pe

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wing items:

Shri, Surendra Chhajer, Director, Ritesh K Patawari. Marketing Head Exports and Shri. R.R.Dave, Consultant, appeared before the approval Committee to explain their proposal. Yo Pe

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Minutes of the 99th Unit Approval Committee Meeting of Kandla SEZ held on 07.07.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.

They briefed the approval committee, their experience in the field of manufacturing of above products. They explained that they had a unit in ' Silvassa and that due to Governments policy they had stopped the production at Silvassa unit. They have ready export orders in hand. On inquiry from the Approval Committee about funding of their project, they informed that they have funds of approx. 1 crore in their bank account for funding the project. The approval Committee apprised them that the permission for manufacturing of tobacco products for export is only till ‘September 2016 and if the Government of Gujarat does not extend the permission, their LoA will be cancelled, to which they agreed.

The approval Committee also informed that imports of Betal nuts will not be allowed and No DTA sale of any goods will be permitted .

‘ The Approval Committee after due deliberation approved the proposal subject to standard terms and conditions for such units which include no DTA sale / clearance of any goods and no import of betel nuts (Supari).

99.2 BROAD BANDING REQUEST IN EXISTING LETTER OF APPROVAL' AGENDA - Item No. 99.2.1 ,

M/s Om Shiva Products Inc.,

| M/s Om Shiva Products Inc., KASEZ is an approved unit for manufacturing activity of following items :-

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----- Start of picture text -----<br> [Sl No, _| Name of the Item : ITC(HS) Code<br>1 Pan Masala 21069020<br>ee Pan Masala containing Tobacco (Gutkha 24039990<br>S Zarda 24039910<br>3 Khaini = 24039930<br>The proposal was for Broad Banding and addition of following items<br>for trading activity: .<br>SL. Items ITC HS Description shown Export Import<br>No. | requested Code of in DGFT Website Policy Policy<br>for Trading | items .<br>activity ‘| requested om<br>for «<br>Trading<br>rnny |is [Ratha] FoodEdibleGrade eeeactivity FoodIndianFlavoring Katha =ae | ree| | pane: Free<br>= Flavour _ eee Material eee | iwage Free<br>ee 2 \Ly<br>----- End of picture text -----<br>

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‘Minutes of the 99th Unit Approval Committee Meeting of Kandla SEZ held on 07.07.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.

s of the 99th Unit Approval Committee Meeting of Kandla SEZ held on 07.07.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.

|pe|pe|pe|pe|pe|pe|pe|pe||
|---|---|---|---|---|---|---|---|---|
||||||Mixtures of||||
|,|||||odoriferous||||
||||||substances and||||
||||||mixtures(including||||
|||||ff|alcoholic solution)||||
||||||| with a basis ofone||||
||||||or more ofthese||||
|3||Non<br>Alcoholic|||33029090||substances, ofa<br>| kind used as raw|Free|Free||
|||Fragrance|||materials in|||||
|;|||;|:|industry; other||||
|||||.|preparations based||:||
||||||on odoriferous||||
||||||substances, ofa||||
||||||kind used for the||||
||||||manufacture of||||
|||RE|||beverages||||
||||||||Free||
||||||||(Import||
||||:|:|||permitted||
|4|||Betelnut||08028010||||Whole|Free|freely.<br>panded<br>CIF value||
||||||||is Rs. 35/-||
||||||||per||
||||:||||;|Kilogram||
|||Light Food||||||and aboye)-||
|5|||Grade<br> wammecrum|||20869920|Magnesium<br> a eae|Free|Free||
|||Carbonate|||||||
|e||Ayurvedic|||Attars ofallkindsin<br>fixed oil base<br>Machinery for||ae||
||||:||sorting, screening,||||
||||||separating, washing,||||
||||||crushing, grinding,||i||
||||||mixing orkneading||||
|va||Machinery<br>Hen|84748090<br>ae||earth, stone, oresor<br>other mineral<br>substances, in<br>solid(including|Free|Free||
||||||powderor paste)||||
||||||form; machinery for||||
||||||agglomerating,||||
||||||shaping ormoulding||||
||||.||aes||||

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ding|Free|Free|| ||||||powderor paste)|||| ||||||form; machinery for|||| ||||||agglomerating,|||| ||||||shaping ormoulding|||| ||||.||aes||||

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```text
||Minutes of the|Minutes of the|Minutes of the|99th|99th|Unit Approval Committee Meeting|Unit Approval Committee Meeting|of|Kandla|SEZ held|SEZ held|on||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||‘07.07.2016||at|12:00||hrs. under the Chairmanship of||Shri Upendra Vasishth,||||||
||Development Commissioner, Kandla Special Economic Zone.|||||||||||||
||||||||||—|||||
||||||||ceramic paste,|||||||
||||||||unhardened|||||||
||||||||cements, plastering|||||||
||||||||materials or other|||||||
||||||||mineral products in|||||||
||||||;||powder orpaste|||||||
||||||||form; machines for|||||||
||||||||forming foundry|||||||
||||||||moulds ofsand:|||||||
|||||||||Other machinery||=||||‘|
||||||||Plastics other|||||||
||||||||plates, sheets, film,|||||||
||||||||foil and strip, of|||||||
||||||||plastics, non-|||||;||
||8|Packing<br>material|||39201019||cellularandnot<br>reinforced,||Wee|Free||||
||||||||laminated,|||||||
||||||||supported or|||||||
||oo||||||s**i**milarlycombined<br>w th other minerals|||||||
|||10|Setene! <br>Powder<br>||||25221000|Quicklime<br>ne<br>:||||Free|Free||||
||Shri.<br>Devang<br>Mehta,<br>Authorised<br>Signatory<br>approvalcommitteeandexplainedhisproposal.|||||||appeared||before|the|||

r>Powder<br>||||25221000|Quicklime<br>ne<br>:||||Free|Free|||| ||Shri.<br>Devang<br>Mehta,<br>Authorised<br>Signatory<br>approvalcommitteeandexplainedhisproposal.|||||||appeared||before|the|||

The Approval Committee observed that no broad banding of panmasala manufacturing unit with other products be permitted, as it would be difficult to monitor ‘no DTA sale’ condition for Gutkha, etc., and will thus vitiate the said condition. : units The approval Committee after due deliberation did not approve the request for broad banding for trading activity. However, the UAC permitted Manufacture of Flavoured Betel Nut with the condition that no import of Betel ‘Nut: will be allowed and flavoured betel nut will only be exported. Regarding trading, the unit was advised to apply for a separate . unit and come with list of such items only for which they have orders specifically. ; AGENDA- Item No.99.2.2 _:| , 7 ‘M/s Zug Bearing Private Limited :- M/s Zug Bearing Private Limited, KASEZ is an approved unit for manufacturing activity and trading activity of Industrial and Automobiles Use Bearings. , cS. - : 

Minutes of the 99th Unit Approval Committee Meeting of Kandla SEZ held on 07.07.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone. 

The units request is for broad banding and addition of Warehousing Service Activity in their existing LoA.

anship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone. 

The units request is for broad banding and addition of Warehousing Service Activity in their existing LoA. 

None of the representative appeared before UAC. However, the UAC - discussed the issue. After due deliberation, the UAC opined that, a Committee formed in this regard is already working on various issues of warehousing units and this issue can only be decided after receipt of report from the Committee.: Therefore, the proposal is deferred. 99.3. MISCELLANEOUS MATTERS AGENDA ITEM 99.3.1 M/s GKN Enterprises . Request of M/s GKN Enterprises, KASEZ, for broad banding and addition of manufacturing of Melamine Formaldehyde Resins to their Letter of Approval was approved in the 97th Approval Committee meeting. However, in the meantime, Melamine Formaldehyde Resins, vide . Notification G.S.R No. 395 (E) dated 04-04-2016 issued by the Ministry of Environment, Forest and Climate Change have been classified in Schedule VI of Hazardous & Other Wastes (Management & Transboundary Movement) Rules 2016 (B3010) under prohibited category. Therefore, the UAC unanimously decided to withdraw the approval granted in 97th UAC.

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M/s India International, KASEZ has been approved unit for Warehousing and Service Activity for Sulfolane, Dimethyl disulfide, Heat Transfer Fluid / Salt, Di-isopropanol amine, MDEA (Methyl Diethanolamine), MEA (Mono Ethanolamine), Dyes, Intermediates and Pigments, Disposable Surgical Products, vide LoA No. KASEZ/TA/001/201011 dated 28-04-2010. The validity of their LoA was upto 10-05-2016. The LoA was submitted for renewal. 

However, it was observed that the unit has calculated NFE based on Import / export figures which is applicable for trading unit. In case of warehousing unit, NFE is on account of rent charged in Foreign Currency. In this regard the unit was earlier informed to appear before the Joint Development Commissioner. The representative of the unit appeared before the Joint Development Commissioner and had explained that the LoA has been issued for Warehousing & Services’ which_Ancludes trading also (Services include trading). a 

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Minutes of the 99th Unit Approval Committee Meeting of Kandla SEZ held on 07.07.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.

## None of the representative appeared before the UAC. 

The issue was discussed in the approval Committee. 

: The Committee noticed that, initially their proposal was deferred in the 11% Meeting held on 09-03-2010 as the agreement with Adar Group was for Warehousingonly and the application was for Trading activity. Later on warehousingin the meetingservices.held on 06-04-2010, their proposal has been accepted for _ 

Therefore, the contention of the unit was not accepted by the Approval Committee and the Committee noted that LoA has already been extended for warehousing and decided to call the unit representative for personal hearing in its next Approval Committee meeting. The Committeealso decided that the party may be informed that till the issue is resolved, they should not do any Trading Activity.

## SUPPLEMENTARY AGENDA 

99.4 NEW PROPOSALS TO SET UP UNITS IN KASEZ SUPPLEMENTARY AGENDA - Item No. 99.4.1

## M/s Tully Promoter & Infrastructure Private Limited 

Their proposal is for setting up unit in Kandla Special Economic Zone for manufacturing Activity of the following items: 

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: Sl. | Items ITC (HS) Code<br>No.<br>BOPP Tape 39199090.<br>The unit made following projections:<br>**----- End of picture text -----**<br>


(i) Investment in Capital Goods = Rs. 130.00 Lakhs (ii) | FOB value of Exports = Rs. 4300.00 Lakhs (i) NFS = Rs. 1570.00 Lakhs 

Shri. Sukhbir Singh, Vice President, of the unit appeared before the approval Committee to explain his proposal. He also explained that they have entered into understanding with two units in Dubai for supply of these products. : The Approval Committee after due deliberation approved the proposal, 6 V4tf , | 

Minutes of the 99th Unit Approval Committee Meeting of Kandla SEZ held on 07.07.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone. ee ee ee eee

## SUPPLEMENTARY AGENDA - Item No. 99.4.2

## M/s. Zip Zap Exim Pvt. Ltd., 

Their proposal is for setting up a unit in Kandla Special Economic Zone for trading activity of approximately 368 items. 

Shri. Gaj Raj Singh Baid Director and Shri. Saboo George, General Manager, of the unit appeared before the approval Committee and explained their proposal. . 

The Approval Committee observed that the unit had requested for permission for trading of many items. They were not able to explain their exact business plan. It was also noticed by the approval Committee that the party had shown very minimum investment of Rs.5 lakhs in their project, whereas, they intend to trade 368 items. The UAC therefore asked the party to submit a clarification on this. : 

The Committee advised the representative to come forward with specific items with 6 digit ITS (HS) code which they intend to trade. The unit was also asked to submit documentary evidence of business in hand by way -of purchase order. They were also requested to submit a brief of their experience in the field. 

The Approval Committee after due deliberation deferred the proposal. TABLE AGENDA 

99.5 NEW PROPOSALS TO SET UP UNITS IN KASEZ TABLE AGENDA ~ Item No. 99.5.1

## M/s. Consolidated Cobalt Chemicals Limited

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M/s Consolidated Cobalt Chemicals Limited has filed -an application for setting up a warehousing service activity unit in Kandla Special Economic Zone under Rule 18(5) of SEZ Rules, 2006. The promoter of the project is already having an approved unit for manufacturing of Cobalt Salts, Ceramic Colours and stains,Magnesium Nitrate Hexahydrate, Borax Decahydrate. for warehousingThe Committeeas advisedobservedin thethat,98ththeUAC.unit had applied for separate LoA After deliberation the approval committee approved the proposal. 

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- Minutes of the 99th Unit Approval Committee Meeting of Kandla SEZ held on 07.07.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone. ——————————— rereoe = ere tomersemensienonenenonsenssneeeenee 9

## TABLE AGENDA — Item No. 99.5.2

## Transfer of M/s MGA & Associates, KASEZ under Rule 74-A 

Their request is for permission to transfer their business, including Unit I & UH, in the name of Shri Gulab Gidwani and Mrs. Rahika Gidwani with same name & Style “MGA & Associates”, i.c. for taking over of M /s MGA & Associates under Rule 74 A, which would mean taking all assets and * liabilities. . 

_None of the representative of M/s MGA & Associates appeared before the approval committee, though, Mr. Gulab Gidwani appeared before the approval Committee. The Committee however, noted that a written letter of M/s MGA & Associates, KASEZ for transfer of their unit to Shri Gulab Gidwani and Mrs. Radhika Gidwani was available on the file. 

The Approval Committee observed that both the units have similar address. The Committee decided that there is no objection to transfer LoA of M/s MGA & Associates (Unit-l), as the said unit is operational since. 2003. However, in case of Unit-Il, presently it is not eligible for transfer because it has not completed two years as on date of trarisfer which is a precondition _under Rule 74A. Therefore, this decision was informed to Shri. Gulab -Gidwani. 

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The Approval Committee decided to defer the case. 

The meeting ended with vote of thanks of the chair. 

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(UPENDRA VASISHTH) _ Development Commissioner . 

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ittee decided to defer the case. 

The meeting ended with vote of thanks of the chair. 

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(UPENDRA VASISHTH) _ Development Commissioner . 

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