Minutes of the 6th SEEPZ-SEZ Authority Meeting held on 5th May 2010

_ “Minutes of the sixth meeting of the SEEPZ Authority held on 5" May, 2010. « | ‘ : Present: rr ew Ag . - J hy # yy : i‘, Development Commi issioner - Chair Person “ . ; ith 2: Joint Development Commissioner oe Member a SS 3 “os 3.. Shri J. K. Singh . Member representing Zonal DGFT e- | Jt. DGFT; Mumbai fyi ee a . ore 4 - Managing4. Mr. AmarKothari Director = Member Mr ; “ae Pe | oo . eo ne OG | * Mis Intergold India Ltd. ae . et " | * s.)5. Shti PS. Rarnan “" e - Secretary . - i a. ss "she De Development Commissioner eee ee | cm, 8 Mrs.MJ.Kulkami - Manager (Estate) © me eel Lal. . Agenda Item No. 1: Presentation of status of funds with SEEPZ Authority and suggestion - ~— | - on deployment. ; vo Ser es : - Rag Vix" ae | oe es Authority noted that a sum of Rs. 28.74 Crores is available in the Authority Fund, ' 7 ’ caren "out of which Rs. 18.00 Crores is kept in temporary ‘Fixed deposit’ and the remaining in the . | - Gel gibo Current Account of theAuthority Fund. It was also noted that as provided under Rule’6 ofthe. ig! | °F. SEZ Authority Rules, a Chartered Accountant to be engaged for maintenance and audit of « | Pa “ _ Authority’s account, for which quotations have been invited from five Chartered Accountant } mY " firms who are in the Panel of CAG. It was further noted that receipt and expenditure estimate — oe _ a would be prepared as soon as the Chartered Accountant firm is engaged for maintenance: and a ae | finalization of accounts of the Authority. oa a 2 Decision: - The Authority decided that Keeping a sum of Rs. 3.00 Crores in the Current’ | 3 Account, the remaining amount may be deposited as fixed deposit so that such deposit can ~ iol | ae ; fetch better rate of interest. Itwas also decided to take further professional adviseSor proper. ” | i %, investment of Sunds as per Rules & Govt. Norms. . a 7 |

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. Agenda Item No. 2: Appointment of Chartered Accountant for Accounts and concurrent audit work of SEEPZ, Authority. ee See - "ae It was noted that out of five quotations invited from file Chartered Accountants Firms who a are on the panel of CAG, only two firms have submitted quotation. It was ‘blso noted that - the Professional fees eueted by M/s. B.N. Kedia & Co. is the lowest i.e. Rs. 14,400/- per month (Professional fees of Rs. 12000/- per month plus out of pocket expenses not exceeding 20% of Professional fees). . = .

_ Wi Decision: - The Authority approved engagement of M/s. B.N. Kedia & Co. as Chartered Accountantfor maintenance and audit ofthe Authority’s account. . ‘ . Agenda Item No.3: Re-development plan for SEEPZ, ih The Authority noted that additional FSI of 581315 Sq. mts is available to SEEPZ. It was also noted that as availability of space in SEEPZ has been less than the demand for space, taking \ into account the expansion needs of the existing units and the need for providing space fd . setting up new units, it is necessary to utilize the additional FSI so that additional space becomes . . available. It was further noted thatthe M.LD.C. has submitted a proposal for Re-development of SEEPZ envisaging investment of approximately Rs. 1200 Crores spread over a period of 8 years, This proposal envisages full utilization of available FSI, by construction of 8 towers. After construction of ” new tower, the existing allottees will be given equivalent built-up space of what they presently have and the remaining space will be sold at market rate. The Chair-Person informed that based on discussion and the presentation by MIDC in respect of their proposal, ) preliminary views of the Zone Administration were conveyed to the CEO, MIDC, vide D.c. ‘SEEPZ, D.O. letter No. SEEPZ SEZ/EMS/Min/09-10 dated 15/04/2010. It was noted that in © case of PPP initiative, a mechanism to ensure quality standards of towers in which existing units will be re located and pricing of space in new towers etc. should be there so that expansion of Exports/Employments in SEEPZ can continue. . | =

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• Agenda Item No: 4: Proposed refinery projects in SEEPZ - — decision on allotmentof a plot 7 Z . # ; Ofjand. . . os . fam ok oo? *) ; It was noted that a common refinery facility is required in SEEPZ to take care of the , . disposal of septic tank waste aid gutter waste. M/s. Hoover and Strong; U.S.A., have forwarded, - | 7). a project proposal for setting up of a refinery in SEEPZ. after preliminary discussion with the, a a | a SGJMA and some of the units, They have indicated minimum land requirement of 1000 Sq.mts: Op at ae

Decision: - The Authority welcomed the Re-development Plan & agreed with. the view expressed in the letter of DC dated 15.04.2010. It was also decided that the possibility of ay obtaining ASIDEfundfor constriiction ofa single Tower by MIDC be.explored. tet

-... Decision: - The Authority held that[[-]]

[[-]] a | 3 , a 2. —_ I. It is necessary to assess whether the technology offered by MA. Hoover and Strong, — 3 a o ee _ ete | US.Ais reasonably latest. They may be asked to give a self-assessment, certified by an >>. 2! - internationally accepted authority. . . an 7 bia at 8s na, ‘7 — | . aa 2 Be aes level of technology offered by M/s. Hoover and Strong, U.S.A. may also begot A ' | , verifiedfrom expert agencies like BIS, MMTC, etc. 1a i 7 | _ | et Ps: Be Expertise ofthe Refinery wing ofIIJMA may be utilized wae Sor this purpose. . e , E f om : y Hq, @ Ah, After the technology issue is settled, the question of allotment of land could befurther Pp oye discussed. : se . 7h Le , 3 &. Agenda Item No. 5: Bio-Methanization plant ne —approval of agreement by Authorityia ns : | @ | The Authority noted that basedon the tender notice advertised in news papers, the offer | . — received from.M/s. Ashoka Biogas has been recommended to the Ministry. of New and» 7 , Renewable Energy (MNRE), New Delhi, for considering admissible grant to the entrepreneur: _ - ~The total project cost envisaged is Rs. 80.00 lacs out of which the grant expected is to the extent’ ae a ‘ of 50% of the project cost. The remaining contribution shall be from the promoter. The: _ / _. ,. Promoter has stated that requirement of land for the purpose would be 1500. Sq. mts. which . ° oe i iy should be leased for a 30 years. It was noted that land for locating the Methanization projecthas ‘4

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been identified near the G & J complex-II. The representative of the MIDC stated that there are * , no issues with regard to the SPA. -

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Decision: - The Authority granted in principle approval proposal for allotment of 1500 Sq. _ mits., of land to M/s. Ashoka Biogasfor a period of 30 years on usual terms and conditions for setting up ofBio-Methanization Plant. Agenda No. 6: Lift & Ramp For SEEPZ Service Centre Building. |

| ; The Authority noted that the proposal is for providing a Ramp & modular Lift in the Service Centre Building. It was noted that the office of Development Commissioner and SEEPZ SEZ Authority are located in this building and various important Government delegations, Trade delegations, Trade missions and overseas entrepreneurs visit the office. The building is not friendly for access by the elders & physically challenged, which is a mandatory requirement. "The visitors as well as the functionaries of units, particularly senior citizens, require facility of the lift in the Service Centre Building. ="

It was noted that the MIDC has submitted an estimate of Rs. 51.69 lacs (including 12.5% ETP charges) for providing modular Lift for Service Centre Building. A Ramp should be added in the estimate.

Decision: - The proposal was approved. The expenditure for Ramp & Lift is to bé incurred from the Authority Fund.

' Agenda No. 7: Repair / Renovation of SDF-V and Waterproofing treatment of terrace eo of SDF-1 Building out Building out out of Authority funds.. Authority funds.. funds... |

of : SDF-1 Building out Building out out of Authority funds.. Authority funds.. funds... | — The Authority noted that urgent waterproofing treatment of terrace of SDF-I and repair/renovation of. SDF-V are required. It was further noted that SDF-I building was — 3 constructed during 1973-74 and major repairs were carried out 3 years back. 32 units are located . in this building carrying out export production activities. The representative of MIDC informed — that waterproofing was carried out 3 years back only in part of terrace for want of funds and : present proposal is for carrying out Waterproofing work in the remaining area of the . terrace. : ‘

} en, ‘As regards SDFOates Authority was informed that the building was constructed.during .[7] | _ 1988 and no major maintenance-has been carried out in the building since them 43 units are | located in this building carrying out exportproduction activities, ~ _ Pe a 7 . " “ , After inspecting the building premises, the MIDC has submitted estimate of Rs.188.61, ge |Bi .-_.treatmentlacs in respectof SDF-I. .of renovation. of SDF-Vaa building andSp) Rs.13.71 lacs for carrying| Waterproofing’a | ; Sd: : _. Decision: - T;he Authority eed theproposalfor carrying out waterproofing work in SDF- < ce | Be L It was decided thatSDF- V Renovation being a major work, exceeding Rs. 50-lakhg and also i 5 ‘hot a construction of infrastructure, should be posedfor M & Rfunds, as ASIDEfunding is: Me “Pn ; | | not likely to bé available. ays 7 Pee Fe Agenda ' No. 8. ‘Settin up of a Weltnesp Centre Creche and wholesale price sho for j oy i 5ftbd set Se ‘The. Authority noted that SEEPZ Units employ nearly 85,000 persons and nearly 40% of | et * work force comprises ofwomen employees. The wages of large number of work force averages i. ria a the minimum wage level prescribed for the industry. At present in SEEPZ SEZ, there is no: / . | i . facility available for providing preliminary medical aid, pre-hospitalization medical ote inthe. | o | : i ies.”[veo] - case of. mishap/emergency or. health check-up, Therefore, considering the large ‘number of a 4 = ; , 8 ‘employes in the zone complex, it is necessary to provide.a Wellness Centre. . ~ aot =“, we o8, pe It was also noted the existing Creche facility. requires better maintenance. The existing me” : Te | | Meebttde of the Creche of at SDF-IIf is also not suitable for runing Crache facility. Considering the. .° | omBi ‘large women workforce in SEEPZ SEZ complex, it is necessary to have a better Creche facility . ar hen 4 | : with Proper space and facility so that interested employee Sali avail ofthe facility. . af, - | ! g Similaily, the facility in the nature of a enioteneting consumer shop in the Zone would if 8 | mE - Servewages asare a welfare relatively measureaveraging and at would the minimum benefit wage employees, level.. particularly those7 employees: ; whose a‘ = | . 7 |Z i

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It was noted that the MIDC has furnished an estimate of Rs. 51.96 lacs for construction of - a small complex to accommodate (i) Wellness Centre (ii) Creche facility and (iii) Wholesale Price Shop. An independent plot which has témporary construction can be used for this purpose. "After detailed discussion the Authority granted in principle approval above proposal.

_ Decision: - The Authority directed that the proposal may be forwarded to the Ministry for the Seeking fund under the ASIDE Scheme. In case the proposal is not approvedfor funding vunder the ASIDE Scheme for any reason, then. the. proposal may be re-submitted for consideration of the Authority. 1

' Agenda No. 9 : Requirement of Manpower for Fire Station :

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|||It was|noted|that|considering|the|large|number|of factories|located|at|SEEPZ|SEZ|and|
|a employment|of|nearly|85,000|persons|by|them,|the|Empowered|Comintios|of|Ministry|of|
|Commerce & Industry|—|setting up|of Fire Station|in SEEPZ under ASIDE Scheme and|
|s.|accorded|sanction|
|_|is|in progress. As=regards520/- Manpower lacs for for the roaning projects.theMIDCfire|stati is c|on|,structing the Fire Stationthe|Chief Fire|Officer,|MIDC,which|
|vide|letter dated 13.04.2010|has|stated|that|the|minimum|manpower|requirement|of the|Fire|
|Station|is|as|under|:-|
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|;|a)|Fire|Station|Officer|.|01|
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|_b)|Asstt.|Fire|Station|Officer|=|-|01|
|c)|Sub Fire|Officer|.|-|01|
|d)|Fire Rescue Leader|-|02|
|€)|Driver Operator|-|04|
|f|Firernan Rescuer|-|12|

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. representativeThe annualof MIDCcoststated thatfor running if SEEPZthe Fite AuthorityStation wantis estimated to levy anyat chargesRs. 36,96,903/-. for maintenanceThe i of Fire Station, the norms of MIDC for this purpose can be adopted.

fa, es a | ee | . iS, Decision: - TheAuthority approved the aboveproposalfor incurring an estimated expenditure _ - | x, ofRs. 36,96,903/- Srom the Authority Fund. It was decided that the ‘possibility of recovering | . | _ a the costfrom the Units by way ofFire Cess as charged by MIDCSrom industrial units outside - c » | SEEPZ, may be worked out& approved. . i a cuff io : / . ‘ . a . Agenda No. 10: Outsourcing of Executive Assistandsfor Authority fands, © ee | It was noted that at present 299 operating units employing nearly 85,000 persons with.F : . i ee -annual aggregate export of Rs. 10,000/- Crores. The Zone is spread over an area of 111 acres 7 ... - <. °. consisting of 7 SDF buildings, 3 Gem & Jewellery Complex Building, 3 Multistoried Towers - oa“ anda number of self built factories. Apart from various Trade delegations and number of.. © :. |i "Overseas client ofthe units visit SEEPZ. It is therefore necessary to ensure proper maintenance | : cn and upkeep ofthe Zone Complex, for which the existing manpower is inadequate. It is therefore Ce im, . necessary to outsource supporting staff to function as Executive Assistant.. It was informed that 7 the requirement of Executive Assistant is as mentioned below : . 1 rgi ot ee 1 For attending = the work ofEstate Section : : ; 2 , ae st i . 2) For attending the work of caretaker a). lod 1 . - ‘ a A * 3)! For attending the to be work related topublic relations ~~ l Pia ee St, | : a . ~ . The Ministry + vide communication dated 10.02.2010 conveyed that a qualified Engineer : : " ofthe rank of AE may be appointed on cost-recovery-basis to look after the estate functions, af . 5° The mode ofappointment wil] be ‘deputation’ by suitable: officials from the’ State Government/ co | ~<"procedure,. State Governmenteee OrganizationsFO . after creation: of the post in the Authority as per the prescribed = wS : te “ a ee . © “< Decision: > The Authority approved the Proposal for outsourcing of services for Executive ja * : i ‘ Assistant and taking Services of an Assistant Engineer on deputation from the State . ‘. , i . _ Government 7 State ‘Government Organization. The Authority approved the estimated | expenditure ofRs. 12.00 lacs per annum for thepurpose. As a regards the Asst, Engineer, since . wa ! i fe recoverythe communicationis to be affectedSromfrom the Ministry units accordingly, specifies appointmentns on cost recovery basis,_ the cost| | = j

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Agenda No. 11: Engagement of Hindi Consultant for Authority.

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It was decided to get the issue examined in file.

. Agendamarketing,No. 12: Commissioning. of an Audio. Visual for SEEPZ SEZ/ New SEZs for |... «2 made The Authority noted that the proposal is to get a 2 Part audio visual of Broadcast quality on SEEPZ-SEZ and the new SEZs of DC’s jurisdiction (5+5 minutes) from a profession : agency. This is required for familiarizing people with concept of SEZ and also marketing of nev SEZs. . ‘+ Decision: - The Authority held the view that estimate may be obtainedfrom reputed agencies al and the work may be awarded on the basis ofLimited Tender Procedures. an - . Agenda No. 13: Transfer /Re-assi nment of Hotel Heavens. |

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The Authority noted that M/s. Indian Coffee Worker Co-op. Society Ltd. who have been ~ .Tunning common canteen facilities in SEEPZ for the Industrial workers since 1978, have sought permission for transfer of their Hotel Premises on Plot No. A-1 in the SEEPZ ++, constructed by. them in the Plot allotted by the MIDC in 2003. The Authority was informed that the existing’ guide-lines for transfer of premises in SEZ covers only premises of units. The present reques. pertains to Hotel premises which is in the nature of a utility. It was noted that as utility is not covered in the existing transfer guide-lines, the matter has been brought for the consideration of . the Authority. ;

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based It was further noted that the above mentioned plot was allotted to M/s. ICH by the MIDC i on tender notice published in newspapers. M/s. ICH have stated that they have huge liabilities by way arrears of wages, bonus and statutory: payments in respect of employees, bank -.”. loan availed for construction of the preinises etc. The proposal of M/s. ICH is to pay up the ¢ existing liabilities from the proceeds of transfer of the Hotel Premises and to utilize the balance funds for strengthening their existing common canteen facilities in SEEPZ SEZ. It was noted

ey 7 that considering the co-operative institution status of M/s. ICH, they have been charged only» . | - token rent of Re.1 by the Ministry of Commerce and Industry. The Authority was informed that | . the M/s. ICH— nearly 450 persons and have been running common canteen facilities for Le | | “, the units in the zone. ‘they also provide use of their premises free of charge for taking break7 7 | os, fast/lunch/dinner by employees of units who brings their tiffins/lunch/dinner. They also allow. if age | oa use of water free of cost for cleaning their tiffin box. The matter was discussed in-detail. Present, te _ 7— policy applies to units & not to utilities. However, it was discussed that the co-operative | - es organization should not collapse on account of theit liabilities. The question whether the ICH can. iy ‘ie, setae one particular agency for a qranisfer was also discussed, It was felt that to ascertain the best _ , iting bidding could be one option. MOC & I’s aiiews that Zone Administration should not get Ns _. into the process of bidding was pointed out by the Chair person. ae a | . Bad . + |. Decision: - After detailed discussion on the subject, we itwas decided that: 7 a) ere : . i Valuation of the ‘Hotel premises may be got done from a Government approved i? | a <.yO 2. = The.-real position ofliabilities duly certified may be ascertained, ar : ee ‘ ‘a e a Foe Agenda No- 14: Revised Tender for Business Facilitation Centre. mpeg ate ey | a[-] re: ‘was noted that no response was received to the Tender notice ‘published in, the. "ume | ey newspapers. inviting tenders on the basis of proposal of leasing of premises in the BFC building’ oe ro | ) to a single professional hospitality agency, probably for the reason that the rent of Rs.’ 58/- per -a 7 : = ‘ *% sq.ft. per month worked out as per MIDC norm was on the higher side and lea’ sihes the’ : : ' / mm clientele is restricted to within the Zone which also restricts the retun on investment. thee. i ee | I ' . Authority ‘was informed that the rent for Govt. buildings viz. SDFs are calculated on the basis of i 3| - FR4SB provision-in terms of which the lease rent is likely to be lower as compared to lease’ rent” i : E . | We calculated.as per MIDC incense Therefore, since the BFC building is constructed out of Govt. of7 “2 j aoe “India funds, the possible option seems to Be to calculate the lease rent on the basis of FR45B "| : a a j . and re- advertise the tender with ‘the revised lease rent inviting tenders from interested-reputed at j | : - hospitality agencies. In case no response is received even with reference to the revined tender, “ag 1] the facilities may be given out for running on modular basis. _ 7 7 | 2 . : st ‘Decision: Ff The Authority approved the proposal. " 7 at, Joe é 7 \

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Agenda No. 15: Health check-up for employees of units.

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The Authority noted that the proposal is to providea health check up camp for employees of Units. It was also noted that 3000 persons are expected to be checked during the camp period. for which estimated expenditure is approximately Rs. 20.00 lacs. The Authority held the view that as per the objectives prescribed for use of Authority funds, contribution from the Authority towards the expenditure for the health camp may not be permissible.

Decision: - The Authority welcomed the idea of the camp & held the view that space may be provided without any charge considering that the health camp is intended to benefit a large | number of employees of units, particularly those who receive wages averaging the minimum wages level. The camp could be sponsored by respective units & the Association. Agenda No. 16: Preservation of Old Church Building.

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“The Authority was informed that the Christian community offers prayers at the Church located within the Zone complex every year in the 2"° week of May. This Churchis stated to be * of 16" Century A.D. As directed by the Ministry of Commerce, the Zone Administration has .. provided a separate gate which provides access to the Church from outside. . , , The Church site was inspected by the Archaeological Survey of India and vide their letter dated 20.04.2010 it has been stated that to avoid any untoward incident, proper conservation _ work needs to be done ‘at this monument. It is essential to strengthen the whole structure ” _ stepwise, including clearance of vegetation, debris, stitching of cracks, repairing of walls, edging | and plastering etc.

The ASI have stated that this monument can be taken up for conservation work under the _ financial assistance scheme or civil deposit work if the controlling department of the monument na (SEEPZ) deposit substantial funds for the proper conservation of this monument to the Director _ General of ASI. Preservation of this ancient church is required for the posterity.

Decision: - The Authority held the view that it may be taken up with the ASI as to whether they can consider the Church as a monument of heritage preservation, in which case deposit

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of substantial fund may not : arranged on request. by the Churchbe necessary.Community._ If this . does not materialize, funds could beae. , 7 . |.t| . The meeting ended with meeting ended with ended with with vote of thanks to the Chair. to the Chair. the Chair. Chair. - 7 . al

. The meeting ended with meeting ended with ended with with vote of thanks to the Chair. to the Chair. the Chair. Chair. - 7 . ba ; FR fe kok ak ak oak aes oe "Tait a a