Minutes of 42nd Authority meeting held on 30.09.2020 under the chairmanship of Development Commissioner and Chairperson, SEEPZ-SEZ Authority

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MINUTES OF THE 4224AUTHORITY MEETING HELD ON 30.09.2020 UNDER THE HAIRMANSHIP OF DEVELOPMENT COMMISSIONER & CHAIRPERSON, SEEPZ-SEZ AUTHORITY.

The following were present: -

(i) Sh. Deepak Jalani, - Member Asstt. DGFT, Mumbai (ii) Sh. C.P.S. Chauhan - Member/Secretary JDC, SEEPZ-SEZ (iii)Sh. Vijay Gujarati, - Member COO, M/s. EOS Power India Pvt. Ltd. (iv)Sh. Ashish Kothari, Director - Member M/s. Jewelex India Pvt. Ltd.

Special Invitees (For Agenda no. 2, 3 and 5): - (a) Mr. Rajeev Pandya, representative of SGJMA (b) Mr. Abhay Doshi, representative of SEEMA (c) Mr. Sanjay Kothari, representative of GJSCI

(d) Mr. Prem Kothari, representative of SGJMA (e) Mr. Shivaji, representative of MEDA

The Chairperson welcomed the Members of the SEEPZ-SEZ Authority and Special Invitees and thereafter Agenda was taken up for discussion.

Agenda Item No. 1: Confirmation of the Minutes of the 41*tMeeting held on 07.08.2020

The Minutes of the meeting held on 07.08.2020 were approved with consensus.

€: Agenda Item No. 2: Proposal for allotment of space in BFC Bldg. (Nonprocessing area), SEEPZ SEZ

The Authority was briefed that there are vacant spaces on the ground floor, 3" floor and 4t floor of the BFC Building which can be allotted to eligible entrepreneurs/organization on a 5 yearly lease basis and on the prevailing rent for creating social or commercial infrastructure and other facilities to be used only in terms of Rule 11 A of the SEZ Rules 2006.

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Representatives of SGJMA, SEEMA, EPCES were present. After deliberation, it was noted as follows:

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• L Authority held the view that the available space on the 4" floor of BFC Building on one side, admeasuring approx. 243 sq. mtrs, may be considered for allotment on the prevailing rent, BMC and service charges to a council/ trade body already active and working in SEEPZ. In the other portion on the same floor, the office of DC, SEEPZ, is already making its modern record room and vacant space on this floor is not suitable for commercial activities.

• ii. The Gems & Jewellery Skill Council has requested for space for their training activities including an innovative activity i.e. Artificial Intelligence training.

• iii. The Trade representatives of SGJMA, SEEMA, EPCES are in agreement with the said proposal for allotment of space as this would benefit the unitholders and the training centre is expected to help women and less privileged people (deaf and dumb) and generate employment.

• iv. Also, as on date there is no requirement of space by any of the trade bodies active at SEEPZ except the G&J Skill Council.

• Vv. G&J Skill Council confirmed that if allocated the space, they will not request in future for reduction of rent or other applicable charges. They further confirmed that they would be vacating the presently occupied space at 34 floor of BFC building upon allocation of this bigger space on 4" floor.

• vi. G&J Skill Council informed that their activities would not be confined to SEEPZ SEZ.

• vii. Since all the councils/ trade bodies active and working in SEEPZ were already present, advertisement for this space would not be required, also because there is no reduction in the rent etc.

• However, the Council was asked to furnish the detailed proposal, write up of the said activities and the plan of action in hand and executed in the past 6 months. They were also asked to elaborate the usefulness of their activities for the SEZ units.

In respect of remaining two spaces and the space to be vacated at 3'4 floor by G&J Skill Council in case allocated space on 4 floor, it was decided to allot the same on advertisement and on receipt of applications from the eligible entrepreneurs/organizations for creating social or commercial infrastructure/facilities in non-processing area as per Rule 11 A of the SEZ Rules, 2006. ae ile \t

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Agenda Item No.3: Proposal for implementation of reduction of tariff charges for electricity in SEEPZ SEZ.

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The Authority was briefed about the procedure w.r.t. reduction in the tariff charges for electricity. Ministry was also requested to intervene in the said matter and to convey GoM to urge the concerned department for reduction in the power tariff rates.

MoC, vide their communication dt. 21.07.2020, had sought clarification as to how the proposed distribution licence will help in reduction in the power tariff. Accordingly, SEEPZ SEZ Authority in its communication dt. 29.07.2020 || had conveyed to MoC that, as per the provision of SEZ Act 2005 and provisions of Electricity Act, 2003, all SEZs are deemed distribution licensee for supply of electricity within their SEZ area and in the event of SEEPZ operationalizing their status of deemed distribution license and operating as separate licensee, a separate tariff would be determinate which would help c majority of consumers and eliminate cross subsidy and the tariff can be reduced from the present rate resulting in lower power cost to consumers. MoC had then informed SEEPZ that the matter should be finalised by the Zone itself observing the provisions of SEZ Act/Rules and GFRs. Ministry had informed that Power Secretary has already been requested for intervention in the said matter to arrive at a appropriate mechanism.

After deliberation, the Authority approved the proposal and agreed to | float a tender viz. Expression of Interest. It was further decided that to scrutinize the EOI to be received in response to the advertisement, a committee to be formed which should include at least two members from trade who have been active in the process so far and for better understanding of the nitty gritty of the matter. Based on the receipt of the bids on Expression of Interest, a Consultant may be appointed for the execution of the said proposal, | if needed. The Co- Developer agreement to be executed should be drafted & carefullyLegal Counsel/Contractsto avoid any futureexpertlitigations and preferablyand losseal s ando by an should beexpert invettedthe field by aof power distribution. Agenda Item No.4: Proposal for extension of Annual Maintenance Contract for Mechanized/Manual Cleaning work and | Housekeeping Services for SEEPZ SEZ campus as well as SEEPZ Residential Complex (Govt. Quarters) for the year 2020-21.

Authority was briefed that the present service provider, vide communication dt. 29.07.2020, has conveyed their willingness and requested to extend contract for financial year 2020-21 on same rate and other terms & | h

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conditions, as stipulated in the tender notice dt. 18.07.2019 & work order dt. = 01.11.2019.

Further as per the directions of the Authority in its meeting held on 07.08.2020 the estate section had inspected the Zone and found that the machines used for the said cleaning are as per the conditions of the tender document and are functional in the Zone. The services of the agency were found satisfactory and after certificates issued by the trade committee, constituted in this behalf, payments were released to the contractor every month. The mechanism of complaints and redressal of the same is already functional in the zone in form of Facilities/cleaning module on SEEPZ’s website. Also, the pseudonymous complaint received in this behalf was found baseless and without any substance. Annexure A, attached to the agenda detailed the issues raised by the said pseudo complainant and its pointwise reply on examination.

Further the Authority was informed that as per clause of “CANCELLATION /REJECTION/TERMINATION/EXTENSION OF CONTRACT” Sub Point (7) & (8) of the Tender Notice dt. 18.07.2019 and work order dt.01.11.2019,if the Zone Administration wishes to extend the mechanized/ manual cleaning work and housekeeping services contract, the same will be done at the same rate as approved under the tender clause. After deliberation, the Authority approved the proposal for extension of existing contract of “Mechanized/ Manual Cleaning work and Housekeeping Services for SEEPZ SEZ campus as well as SEEPZ Residential Complex (Govt. Quarters) for a further period of three months till 31.01.2021 or till finalization of new agency, whichever is earlier, on same terms and conditions of the work order dt. 01.11.2019 at the same rate, as it is more advisable in the interest of the Zone and the workers employed by the contractor that there should not be any immediate disturbance under the present unprecedented circumstances of Covid-19. It was further decided to procure the said services, aS per requirement of Zone and under same terms and conditions, through GeM, if available there failing which open tender process may be followed as per GFRs. Authority has directed that the contractor to ensure that the work executed by their labourers, related to cleaning of drainage, gutters or in the buildings at height etc. should be carried out under the supervision of the supervisor so as to avoid any untoward incident and for ensuring safety of the workers. The service provider should also ensure regular mechanized cleaning.

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| + Agenda Item No.5: Proposal for implementation of Solar Power Project by MEDA under RESCO model.

Authority was briefed that the implementation of solar power project was re-examined in consultation with MEDA as per the directions of the Authority in its 41st meeting and it was conveyed by MEDA that they have agreed for RESCO model where MEDA would implement the project through nominated developers and maintain the same for a period of 25 years. SEEPZ SEZ Authority need not own the responsibility towards plant maintenance post implementation of the Plant. Representative of MEDA had conveyed that SEEPZ will get the electricity at the discounted rate of Rs. 2.74/- per unit | against the current Electricity Tariff of DISCOM rate of Rs. 11/- per Unit being | € charged by Adani Electricity, and that this a standard fixed rate for Government establishments. Authority observed that Solar Energy Corporation of India Ltd. had also : | CAPEXconveyedor thatRESCO theymodel. are also developing solar projects which can be installed in MEDA representative stated that a Power Purchase Agreement has to be || executed between the developer and the SEEPZ Authority. The said | agreement is a standard agreement and has been vetted by Ministry of Finance and Ministry of Law & Justice. After detailed deliberation, the Authority approved the proposal in principal for RESCO model and also execution of the Power Purchase : Agreement. However, Authority was also of the opinion that the proposal of Solar Energy Corporation of India Ltd. may be examined and they may be © asked to quickly furnish their detailed proposal including the rate per unit of the power under RESCO model for comparison with proposal of MEDA before awarding the contract to MEDA. Agenda Item no. 06: Proposal for honorarium to the existing govt. staff for attending the Authority related work and | providing vehicle to the Secretary of the Authority. Authority was apprised that as there are no regular staff to , discharge the Authority related work, the existing staff may be granted ‘ honorarium for discharging additional responsibilities of the Estate ; , se S\é ,

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Management section, as being done in past also. Hence it is proposed that a honorarium may be defined and granted in the following manner

1. Assistant = Rs. 6000/2. UDCs = Rs. 4000/3. Caretakers = Rs. 2000/-

Also, the Authority was briefed that instead of granting honorarium to Secretary, the vehicle already hired under Authority may be utilized by Secretary for pick up and drop from his residence to office and back.

After detailed deliberation, the Authority approved the proposal of granting honorarium to the staff i.e. Assistant, UDCs and Caretakers subject to the condition that the same should not exceed 10% of their basic pay. Also, Authority approved the proposal of providing Authority vehicle to Secretary for commuting from his residence to office and back. Agenda Item no. 07: Proposal for purchase of EDI stationary for security gate passes.

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Authority was informed that as per the decision and directions of the Authority in its 41st meeting held on 07.08.2020, the 5 bids thusreceived were opened on 19.08.20 and scrutinized. On Technical scrutiny only 3 bids i.e. agencies were qualified for Financial bid as per the Tender notice dated 22.06.2020 with all relevant technical capabilities. It was observed from the financial bid by the tender committee that M/s PLACARDS have quoted lowest price among all other bidders and became L1 @ rate of Rs 24.75/- per card which is much higher than the proposed in-house arrangement @ rate of Rs. 15.05 for the materials to be procured through GeM portal.

After deliberation, the Authority held the view that as can be seen from the bid quoted by the L1 bidder, it is much higher than the proposed in-house arrangement, hence the Authority directed to initiate action for re-tendering and extended the present contract till the finalization of the new agency or the implementation of the proposed in-house arrangement.

The Meeting ended with a vote of thanks to the Chair.

This issues with the approval of the Chairperson of SEEPZ SEZ Authority. pnw Pe \ Secretary/Jt. Development Commissioner, (C.P.S. Chauhan) ‘ SEEPZ SEZ Authority be Chornon Chornon 6