Minutes of the 18th SEEPZ-SEZ Authority Meeting held on 03.06.2013

| °° MINUTES OF THE 18™ MEETING oF THE SEEPZ-SEZ AUTHORITY HELD ON | 03.06.2013 AT 3:00 P.M. UNDER _ THE CHAIRMANSHIP OF DEVELOPMENT | Z COMMISSIONER, SEEPZ-SEZ AND CHAIRPERSON, SEEPZ-SEZ AUTHORITY. _ | | Present | ' 4. ShriP.S.Raman :Member | : || | 2. Dr.Secretary Ramesh . : Nominee of Zonal Addl. DGFT ( ae In attendance 3.Shri Y.B.Baghel — i“ oi | (Asstt. Development Commissioner) : | | | Minutes | the 17% meeting held o .02.2013-were confirmed. Agenda Item No.1:a access. | toSEEPZ Service Centre premises : and providing chain link fencing around the premises poy : It was noted that for administrative convenience: the proposal is for isolating the SEEPZ Service Centre bldg, BFC bldg. and Bank bldgs., from the processing area of the — Zone, by. providing a separate entry/exit gate and erecting suitable wall to separate foes these buildings from the processing area. It was also noticed that estimated expenditure for the work is Rs. 82,31,600/- as per estimate submitted by MIDC. Decision: The Authority approved the proposal. 7 Agenda the No.2: Creche facility. | | i - tt Ws noted that créche facility is to be provided by the employer as per the a Factories Act, 1947 wherever is 30 or more women are employed. Considering the I space constraints in SEEPZ-SEZ, ‘it is not practically possible for providing space for | _ creche facility for each unit and therefore, the common créche facility has been | considered necessary. It was further noted that due to increase in the number of ! - children in the creche and also due to the need for granting wage increase to the on - ‘the_ persons quarterlyemployed amountin fromthe thecréche, existingStree Rs. 1,20,000/-Mukti Sangathana to Rs. 1,50,000/-.has sought enhancement in a a The! Authority noted that so far an amount of Rs. 8,37,426/- has been spent from “ the Authority Fund for running the créche facility against which a sum of Rs. 5,16,750/| has been| received. as contribution from some of the employers. The remaining “| "employers |have been reminded and the progress of recovery is being monitored. It was - _ Noted that the contribution from the employers should come in time and regularly so that | the operational expenses of the créche facility is. met from the same. - | | Decision: 7 | : 1. Fhe proposal to enhance the quarterly amount from Rs. 1,20,000/- to Rs. | 7 180,000" w.e.f, 01.04.2013 was approved. ae ot 2. It was directed that as providing créche facility is mandatory on the part of © ! the employer, it is necessary to open a separate bank account for ee depositing contributions of the employers and for meeting the operational | expenditure for running the creche facility. It was directed that this issue | may be examined and suitable proposal may be submitted in the next | | meeting of the Authority. | 3. The recover of expenditure already incurred from the Authority fund for 7 run fing the créche facility should be monitored and the progress thereof : shot Id be submitted in the next meeting ofthe Authority. ¥.

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AgendaL No.3: Continuation of Gym Facility with 50% discount rent | ; the Authority noted that an area of 230.83 sq.mtrs. has been provided for Gym - facility: in the BFC bldg as a part of common infrastructure. This facility was allotted to . Ms. DK. Hospitality and the Gym became operational w.e.f. 02.07.2011. The rent applicable to the BFC bldg is @.of Rs. 44/sqft/month apart from service charges of Rs. - 56 sq. mtr per annum. Concession of 50% in rent as well as service charges were granted to M/s. -D.K. Hospitality for a period upto 31.02.2012. in order to facilitate effective running of the Gym facility. Therefore, it was decided to charge full rent and service charge w.e.f. 01.04.2012. : | It was noted that M/s. D.K. Hospitality vide their letter dated 25.02.2012 has | been.requestedto re-consider grant of concessional rent and service charges as they have suffering loss in running the. facility. They have also stated that they are not in a | position to manage the Gym at the present rental charges and have served 30 days i termination notice with the request to terminate the contract w.e.f. 30.04.2013. The / proprietor jof M/s. D.K. Hospitality was granted a personal hearing before the Authority, | _ during which he submitted that at present, the monthly expenditure for running the Gym it ; facility works out to Rs. 2,53,497/- as against the monthly income of Rs. 1,55,799/-, es thereby suffering a loss @ Rs. 97,698/- per month. He further submitted that he is | making all the possible efforts to increase the membership by contacting the units and :| alsoin rent by providingas well as servicemodern equipmentcharges needsin the to:be Gym. refundedHe submitted from 014 that -04.2012 the 50%onwardsconcessiontill the | members level improves to the extent of generating finance to wipe out the loss. —— Decision:: Considering that the Gym has been created as part of infrastructure | of the Zone for benefit of employers/employees of units, the Authority approved | grant of 50% concession in rent as well as service charges w.e.f 04.04.2013 for a” _ petiod of one yaar Le_upto 31.03.2044 The request for grant of concession | po retrospectively from 01.04.2012 onwards was not agreed to. : . | Agenda Item No.4: Extension of tenure of appointment of Shri R.Asokan, | | Legal Consultant is cel. : The Authority noted that the present arrangement of outsourcing services of i . Legal Consultant, Shri R.Asokan ( who is Sr. Govt. Counsel in the Panel of Law Ministry) go is for the period upto 10.1 0.2013 and the Proposal is to extend the arrangement for 3 | further period of one year w.e.f. 1 0.410.2013 on the existing terms and conditions. | Decision: |The Authority approved the proposal. : . | | Agenda “e No.5: Draft Exit Policy and Rent Policy : ‘ | : _ It was noted that the draft Exit Policy for units located in SEEPZ SEZ in SDF VIL, -|| ‘Towers’self built| factories & ll of SEEPZ++,on plots multistoriedin SEEPZ SZbuilding or part(allotted thereof andto unitsRent by recoveringPolicy formulatedcost) andby | | the Authority was hosted on the website of the Zone on 27.05.2013, and an e-mail was sent to the SEEPZ units on the Same day informing the hosting of the draft policy on the - bywebsite 31.05.2013.of the Zone and also inviting Suggestions, if any, in the matter to be submitted | , : | lt was also noted that SGUMA sought extension of time of one month for _ furnishing their suggestions. Three banks, SEEMA and five units have furnished their | Suggestions.

• =| : it was noted that the suggestions received were broadly the following: |

• bo 1. ‘The area of premises should be specified in carpet area instead of built up. : 2. In respect of self built factories, the reserved price should be higher depending on the) quality of construction, investment in interiors etc.

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• i: 3. i” present six differential rent slabs in respect of premises in Govt. SDFs may ne _ be removed over a period of six years and thereafter a 50% rent subsidy may be _ given to electronics hardware sector.

• : . . 4, Rent increase be graded based on year of construction, condition of bldg;

• | . vestmen at the time of construction. . Oe 7 5 The banks suggested that SARFAESI auction procedure should be specified. 6. | Reserved pricé should be comparable from market price ascertained from os the Govt. Valuer.

• “| It was noted that the above Suggestions in the suggested procedure in the 1 ‘draft policy, i.e. while bidding for the Premises, the prospective bidder usually _ inspects the premises and quotes based on the usable area, quality of _ construction, facilities available in the premises, market price for similar facilities

• 4 available outside, etc. As regards the suggestions received from the banks, it was

• —— noted that possession of the premises, either symbolic or physical, is with the’ a concerned bank under the SARFAESI Act, the bank could apply to the Authority : q Exit Policyfor consideringis consideredauction ofadequate. the premises. for which the; procedures stated in the mi4 mentionedDecision: ‘Thebelow:Authority—-- approved the. Rent Policy, as well as Exit Policy as [x — “i The unit holders in SDF-VII, Towers | & Il-of SEEPZ++, multistoried building

• | (allotted by recovering cost) and self-built factories on plots in SEEPZ SEZ or part | thereof shall be allowed to exit and receive compensation in accordance with the | guidelines issued by Authority from time to time. The compensation Shall be paid directly by, the new allottee in accordance with the procedure/guidelines issued followingfrom time tocriteria: time. The selection of the new entrepreneur shall be on the basis of:

• | 1. Export projections » vs

• a| | | 2. Investment envisaged , Lo ys

• y 3. Employment envisaged . oi — 4. Premium offered over and above the reserve price 6.5. | AnyPriority other sector criteria declared declaréd by by the the Authority Authority from time to time. os The preference, however, shall be given to the criteria which meet the

• objectives of SEZ ActiRules. ) Rent Policy ,

• | 4. Rent wi be uniform for all Govt. built SDFs. | |

• | / manner. oe 2. Difference in lease rent in different SDFs shall be removed in a phased. | . . | | 3. Rent sha be liable for revision every year. , . A, The new allotment Shall be at the highest prevailing rate of Govt. built SDFs. | 5. The allottees ‘Shall be liable to pay penal rent in case of failure to meet the

• 7 projections or keeping the space vacant. | | _The guidelines alongwith Exit Policy and Rent Policy displayed at website, | policy.for inviting | suggestions shall be Suitably modified in accordance with above |

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7 | Agenda Item No.6: Bio-Methanization plant in SEEPZ SEZ oo The Authority noted that the plant has been conceived with the objectives of : disposal of bio-degradable waste and supply of gas generated out of the waste to | restaurants/units in the Zone. It was noted that the estimated expenditure for the project - ‘is Rs. 90.00 Lakhs, out of which Rs. 32.50 Lkahs has been the contribution from the i SEEPZ Authority. Rs. 28.57 Lakhs as Promoter's contribution from M/s. Ashoka Bio j Green and Rs. 21.75 Lakhs as grant from MN&RE. It was noted that the present status : of the project is as follows: os i | e Though the project was commissioned on 25.07.2012, the MN&RE vide their ii letter dated 21.12.2012 has held the view that the grant sanctioned by them is for a _ demonstration of integrated technology-package on medium-size bio gas fertilizer Dt ; _ Plants for generation, purification and bottling of biogas, which has not been | implemented. MN&RE has therefore cancelled the grant sanctioned for the - . | /° _ Ws! Ashoka Bio Green have discussed with MN&RE their proposal to implement 8 _ the |project as per the terms and conditions specified in their sanction. Mis. sl Ashoka Bio Green have to furnish schedule of implementation in this regard | whichconsideringneedsrestorationto be ofsubmitted grant. to MN&RE through DC, SEEPZ-SEZ, for | 'e rhe existing availability of the canteen waste is not adequate to feed the plant 4 and therefore other bio-degradable waste such as dry leaves, lawn cuttings etc. | will have to be used after necessary pre-treatment for feeding the plant. Since i oo gas'the extent of gas generation from the mixed bio-degradable waste is not i,| | certain,disposal ofthe wastepromoter sincehas commercialcome up gaswith expectedthe suggestion to be generatedto treat theis negligible.plant as for : | e The | promoter during discussion stated that the plant needs to be recharged with ! 7 fresh culture and thereafter they can hand over to SEEP7Z. . | Decision: The Authority directed that the plant needs to be commissioned as per 2 the conditions specified by the MNRE in their grant sanction letter dated elon 10.02.2011, so that the plant becomes eligible forgetting release of the sanctioned be grant (which has now been cancelled and will require restoration based or it ‘compliance by the promoter of the conditions specified by MNRE). It was directed oy that review of-the MOU between the Authority and the promoter can be considered | after the plant is fully commissioned and release of the MNRE grant for the oe project. | - — | | . The meeting ended with a vote of thanks to the Chairperson. ny | : alrpérson | | SEEPZ-SEZjAuthority.