Minutes of the 63rd SEEPZ SEZ Authority meeting held on 11th Oct 2023

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File No.E-FNC/69/2022-EO

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MINUTES OF THE 63'™AUTHORITY, MEETING HELD ON 11.10.2023 IN HYBRID MODE, UNDER THE CHAIRMANSHIP OF THE DEVELOPMENT COMMISSIONER & CHAIRPERSON, SEEPZ-SEZ AUTHORITY.

The following were present:-

1. Shri C.P.S. Chauhan, - Member/Secretary JDC, SEEPZ SEZ |

2. Shri Himanshu Dhar Pandey, - Member|Nominee of Addl. DGFT, Mumbai] Dy. Director General of Foreign Trade

3. Shri Adil Kotwal, Chairman/ CEO, - Member M/s. Creations Jewellery Mfg. Pvt. Ltd.

4. ShriM/s . AbhayFineline Doshi,Circuits ManagingLtd. Director, - Member |

Special[Invitee:-] |

• a. Shri. Pandire, Dy. Engineer, MIDC, SEEPZ SEZ

Shri. Haresh Dahelkar, ADC (Estate-Operations), Shri. Palash Shankar ADC Finance (Accounts & Procurement) Divn, Sh. Hanish Rathi, ADC (Security/IT), Shri. Manish Kumar, ADC (Estate-MEGA CFC), Smt. Bridget Joe, EA to Development Commissioner, Smt. Y. Mangala, PAO, Smt, Rekha Nair, Assistant and Shri. Rajesh Kumar, UDC also attended the meeting to provide asiygce The Chairperson welcomed all the members present and thereafter agenda of the meeting was taken up. | Confirmation ofthe Minutes of the 62"4 Authority meeting held on 09.08.2023. |

Decision: After deliberation, the Authority confirmed the Minutes of the meeting held on 22.06.2023 with consensus and also directed to initiate action on the eviction notice issued to residential colony allottees. Authority also directed Estate Officer to examine the proposal for construction of Residential Tower at the earliest.

Agenda Item No. 1:- Proposal for release of payment in respect of M/s. Neo Enterprises and John Reegan under "Refreshment" head. | Authority was apprised that 250 nos. of T-shirts were purchased for Yoga Day amounting to Rs. 79,000/- from John Regan and had hired DG set from M/s. Neo Enterprises for Rs. 10,000/-.

Decision: After deliberation, Authority approved the proposal for release of payment amounting to Rs. 79,000 & Rs. 10,000 under “Refreshment” head.

Agenda Item _No. 2:- Proposal for release of funds to Indian Coffee House ahd M/s. Neo Enterprises under "Contingency Fund" head. Mega Blood DonationAuthority wascainp apprisedorganizedthatby refreshmentsSEEPZ SEZ andwere lunchprovided to vlunters/by Indian torCoffee duringHouse,

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amounting[to][Rs.][6,75,000.][M/s.][Neo][Entrps.][had][also][provided][PA][Sound][and][Photo][Video] .[and] Management services for Rs. 22,000/-. Authority was informed that in-principally Authority in the 61% mbeting had approved the re-appropriation of funds under “Contingency Fund” head. Accordingly, the amount was released.

Decision: After deliberation Authority granted post facto approval for release of payment of Rs. 6,75,000 to M/s. Indian Coffee House & Rs. 22,000 to M/s .Neo Enterprises under “Contingency Fund” head. sats es Hiring of CA for the purpose of Accounting, Billing and Contract me support at SEEPZ-SEZ. Accountantsi foratedthewaspurposeapprisedof Accounting,that tenderbilling,was floatedand contracton GeMmanagementportal for hiring ofsupport Charteredand on the technical and financial bid evaluation, M/s. Jain V and Co has been awarded the contract for Rs. 30,41,916

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scDecision: After Billingdeliberation, and ContractAuthority Managementnoted supportthe proposal at SEEPZ-SEZ.of hiring of CA for the purpose of

Agenda Item No. 4:- Hiring of Tax Auditor at SEEPZ-SEZ, Mumbai.

Authority was apprised that tender was published on GeM portal for hiring of Tax Auditor and on the technical and financial bid evaluation, M/s. P.K Chopra & Co. was awarded the contract for Rs. 75,000/-.

| Decision: After deliberation, Authority noted the proposal of[hiring][of][Tax][Auditor.]

Agenda Item No. 5:- Proposal for re-appropriation of funds for payment to “Indian Government Mint (Unitjof SPMCIL) for Rs. 1,51,620/- for testing/assaying under “Removal of Dead trees and trimming qf grown trees” head. |

Authority was apprised that samples of gutter waste froin 7 sectors were collected for testing/assaying to be forwarded to Indian Govt. Mint and the cost of testing of one sample is Rs. 21,660\and accordingly the total cost for testing of 7 samples amounts to Rs. 1,51,620. It was informed that there is no fund allocation for payment to Indian Govt. Mint and hence the amount needs to be re-appropriated from another head i.e. “Removal of Dead trees and trimming of grown trees”

Decision: After deliberation Authority approved the re-appropriation of funds and directed to expedite | matter and obtain the report at the earliest. Agenda am No. 6:- Proposal for re-appropriation of funds of Rs. 1,96,000 for payment to Shri. V.N. Supanekar for review & updating of Disaster Management plan under Fire/Life Safety | head”.

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11.04.2023 Authorityfor review was& apprisedupdating ofthatDisasterShri. VishwasManagementN. SupanekarPlan and wasit was issuedalso wohinformed orderthat dt. for release of payment, re-appropriation of funds needs to be done from “Fire /Life Safety Consultancy” head. | Decision: After deliberation, the Authority approved the re-appropriation of funds and directed to expedite the release of payment. | Agenda Item No. 7:- The Proposal for re-appropriation of funds for payment to M/s S.M. Scrap under “Removal of Dead trees and Trimming of grown trees” head. | | Authority was apprised that that M/s .S.M. Scrap was given work order for dismantling and shifting of capital goods from the Units of M/s. Lilavati Jewellery and M/s. Fabrigem Creations to SDF-VIII who were issued eviction notices for non-performances. The yendor has executed the work and completed the same. Decision: After deliberation, Authority approved the re-appropriation of funds and directed to release the payment at the earliest. | Agenda Item No. 8:- Proposal for. re-appropriation of funds to M/s. PK Chopra & Co, amounting| to Rs. 25,000/- for Tax Audit fee at Andheri SEEPZ-SEZ under “Accounting Charges, billing Services& Income tax Assessment” Head.

Authority was informed that the work of Tax Audit was awarded to|M/s. PK. Chopra & Co. and they have completed the work, hence payment needs to be released. | Decision: After deliberation, the Authority approved the re-appropriation of funds for release of payment to M/s. P.K. Chopra & Co. |

Agenda Item No. 9:- Proposal for Revision of Lease rent.

Authority was informed that lease rent needs to be revised annually as per Ministry’s letter dt. 14.05.2023 and the lease rent was last revised in October 2022. Authority was informed that the rent may be revised with 20% increase w.e-f. 01.04.2024. Trade membersofthe Authority were of the opinion to reduce the percentage of increase of lease rent. Decision: After deliberation, the Authority was of the opinion that as the quarterly bill for the period October. to December 2023 has already been issued, the increase of rent by 5% should be levied w.e.f. 01.01.2024 for the financial year 2023-24. Authority also directed tat every year the rent to be increased to 5% w.e.f. 015' April of the financial year so as to|to bring certainty totheissue. | Agenda Item No. 10:- Intimation of expenditure incurred for MEGA CFC Project. | | Authority was apprised that regular review of the progress of projects are being done by

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Minist Ly from time to time. It was intimated that the updated status 9n the project cost and the denestd als incurred till date needs to be updated to the Authority time to time i.r.o. Part A & B on the construction of the building along with the budget provisions and expenditure till date. | Decision:amomfiite toAfter Rs.deliberation, 33,98,50,033/-Authoritytill date andnoted alsothe directedupdated to intimate thestatus o: the Ministryexpenditure accordingly.incurred

Agenda Item No. 11:- Intimation of expenditure incurred for NEST-01 Building

Authority was apprised that regular review of the progress of projects are being done by Ministry from time to time. It was intimated that the updated status on the project cost and the expenditure incurred till date needs to be updated to the Authority time to time on the construction of the building along with the budget provisions and expenditure till date. Decision:amouting| to Rs.After deliberation,8,85,85,302/-Authoritytill date andnoted alsothe directedupdated to intimate thestatus of the Ministryexpenditure accordingly.incurred Agenda Item No. 12:- Intimation of expenditure incurred for NEST-02 Building. | | Authority was apprised that regular review of Ministry the progress of projects are being done by ot from time to time. It was intimated that the updated status on the project cost and the ma incurred till date needs to be updated to the Authority time to time on the construction| of the building along with the budget provisions and expenditure till date. Decision: After deliberation Authority noted the updated status of the expenditure incurred amounting to Rs. 5,00,33,138/-till date and also directed to intimate the Ministry accordingly | Agenda Item No. 13:- Approval for procurement of Machines for Mega CFC at SEEPZ-SEZ. | Authority was apprised that construction of Mega CFC for units and stakeholders will provide advanced technical assistance to the industry offering usage of latest machinery and equipment and various technology services which will in turn enhance the existing quality, productivity, skill of manpower, R&D, technological advancement and cost competitiveness. Authority had tendered and procured the machinery and 60% of the advance payment has been made to the successful bidders. The successful bidders have submitted the performance bank guarantee. The Authority was provided the list of the bidders and the total approved cost and expenfliture for procurement of machinery. It was further informed to the Committee that the total cost of the machinery required for Mega CFC is approx. Rs. 19.10 crores

Decision: After deliberation. Authority approved the procurement of machinery and the release of Payment of approx. Rs. 19.10 crore. Authority also directed to amend the MOU accordingly wih G EPC.

Agenda Item No. 14:- Proposal for additional scope of work in respect of Mega CFC.

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| File No.E-FNC/69/2022-EO | | | there is a deviationAuthorityin thewasquantityapprisedandthaex t ranearingitems beyondcompletionBOQ.ofThe thesameconstructionwas put iforth thebeforebldg. the Tender Evaluation Committee and the decision of the committee i.r.o. various items was informed to Authority. Decision: After deliberation, Authority approved the proposal of additional scope af work and also directed to intimate the Ministry. It was observed that the project cost has not exceeded beyond 10% of the tendered amount. | Agenda Item No. 15:- Proposal for replacing damaged fire fighting system, fire alarm system and DG set at BFC Building as per Maharashtra Fire Prevention & Life Safety peasares Act 2006. Authority was informed that MIDC had submitted the DPR for Rs. 71)53,100 for replacing damaged fire fighting system, fire alarm system and DG set at BFC bldg. It was informed that the existing pump motor and its accessories are rusted due to water logging during monsoon and therefore need repairs and fire panels also needs to be repaired. | Decision: After deliberation, Authorit, was of the opinion that as Shri. V.N. Supnekat has been engaged for review and updating the disaster management plan, he may be consulted in this matter as well and decision to be taken thereafter only. | | Agenda Item No. 16:- Proposal for installation of On-Grid solar Tree Power Plant at the Garden Area in front of Service Centre Building. plant. The ideaAuthority of installation was apprisedwill reducethat therecarbon isemissiona need andfor installationwould be a smallof on-gridstep Lotato achieve tree net zero emission as announced by Prime Minister during the COP26 summit at Glasgow and in compliance to the directives of Ministry of Power & MNRE. | Decision: After deliberation Authority was of the opinion that the estimated cost is Rs. 17,21,500 for which the Return on investment would take 28 years. Hence Authority directed to explore other possibilities as non-fossil fuel option has its own benefits. : | | AgendaItem No. 17:- Proposal for obtaining DPR from MIDC for Construction of Parking Structure for two wheeler vehicles and necessary provision for 4 wheeler vehicle parking in Sector 2. | | Authority was apprised that a parking space will be constructed over an open gutter along with an unused septic tank which will accommodate approx 1600 two-;wheeler vehicles and necessary provisions will be made to ensure zero blockages and. regular maintenance accessibility to gutter. The total area requirement would be around 2200 sq. mtr. Authority was also informed that there will be a provision of solar plant system for the roof area ofthe the61Ststructure.AuthorityAuthoritymeeting wasof approx. conveyedRs. that65 lakhs.the budgetIt wasprovisionapprisedhasthatalreadycost isbeenlikelypradeto bein around Rs. 1 crore due to addition of area and addition of solar panels | |

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improving the parking space by this measure and directed to obtair. the DPR from MIDC and = After deliberation, Authority approved the proposal considering the huge potential for complete the work as soon as possible for the benefit of the employees of the to the area. ote and to avoid any fire hazard due to lack of space for fire engines to reach Avendi Item No, 18:- Providing Silicon sealant in the gap portion of glass facade of SDF VIII “oN in SEEPZ-SEZ premises in Sector 06:‘Authority was apprised that on inspection it was observed that due to unusual temperatures exposed portion of sealant deterioration and water through cracks have been created . Thus, the cracks in the sealant expand till backer rod which weakens the backer rod and therefore needs replacement. MIDC has provided the detailed scope of work and the cost to culesapprox, Rs. the13.97 worklakhs. and Administrative approvalAs there was heavy leakages was alsoin grantedthe monsoon,for theMIDC same.was requested to | Authority . additional[provision] was[of][Rs.] informed[3.97][lakhs] that[needs] a budget[to][be][made.] provision was made for Rs. 10 lakhs and | Decision: After deliberation Authority approved the proposal for providing silicon sealant in the Sap portion of glass facade of SDF-8 building and the additional budget provision to be made for Rs. 3.97 lakhs for clearance of payment on completion of work by MIDC. | Agenda Item No. 19:- Proposal from MIDC to resolve water shortage in SDF-III and SDF-IV. & | Authority was apprised that there is acute water shortage for the unitholders in SDF-III IV and SEEPZ++ due to which they need to bear huge cost for transportation of water by tankers. MIDC was also asked to explain the proposal and the estimated time for completion of work, ‘MIDC had mentioned that on laying of additional pipelines along with accessories will help in providing water supply directly to SDF-IV at the same pressure which is presently attained at location of BMC water supply inlet point near G&J- II. MIDC had also clarified that the additional pumping arrangement for water supply from SDF-II sump to SDF-IV pump which was made will suffice the needs of SDF-3 Units. The Dy. Engineer, MIDC present online explained the whole process. Docen: After deliberation Authority approved the proposal of Rs. 58,61,600/- and directed to obtain the DPR on urgent basis and execute the work as soon as possible. | Agenda Item No. 20:- Proposal of M/s. Jewelex India Pvt. Ltd. to carry out strengthening, retrofitting| and terrace water proofing in ICH canteen building. | cost Authority was apprised that M/s. Jewelex had carried out structural audit on their own and it was observed that there is an expense of Rs. 60 lakhs for strengthening, retrofitting

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| | | '. le Nox-FHCls2002£0 || | | | and water proofing of the building. Authority was also informed that the Unit had requested for reduced rent from Rs. 2585/- per sq. mtr, to Rs. 1500/- per sq. mtr. and increase in the lease period from 5 to 15 years. Further, it was noted that the said premises will be available for yoga centre for SEEPZ from 08 am to 10 am everyday and for the rest of the day it will be utilized by M/s. Jewelex for dining of their employees and no other operations of manufacturing, or services shall be undertaken in the said space. | Decision: After deliberation, Authority approved the proposal for strengthening the building and water proofing treatment at the cost of the Unit and also approved the reduced) rent of Rs. 1500 per sq. mtr. Authority was also of the opinion that the lease period will remain the same i.e. renewal every 5 years. | Agenda Item No. Item No. No. 21;- Renewal of AMC ofSDFSDF VIII |

Agenda Item No. Item No. No. 21;- Renewal of AMC ofSDFSDF VIII

Authority was apprised that AMCs related to Electrical installation, housekeeping Air conditioner and fire fighting system of SDF-VIII granted to MIDC will expire on 16.10.2023 and AMCof elevator will expire on 12.03.2024. | Decision: After detailed deliberation, Authority was of the opinion that the AMC of SDF-VIII should be carried out by existing contractors of SEEPZ. Also the location of SDF-VIII is to be incorporated in the existing tenders to be published. Authority also directed to discontinue the AMCs granted to MIDC on expiry. |

Agenda Item No. 22:- Proposal for hiring of one electric Vehicle for official Use.

| Authority was apprised that a vehicle needs to be hired for official use as there are lot of court cases in various Courts viz High Court, City Civil Court and also need to visit Branch Secretariat to interact with Advocates to discuss cases and visit various sites and monitor various on-going projects, | Decision: After deliberation the Authority approved the proposal and directed to shire the vehicle from the existing service provider. | AgendaItem No. 23:- Proposal for setting up ofa Refinery at SEEPZ. | Authority was apprised that one of the member of the Authority [Trade member] had | submitted a proposal for setting up a refinery centre. Member had informed the Authority that settingresidual upwaste refineryoutside centrethe willZone beand beneficialprocesstoit thewithin Tradethe asZoneit wouldand lowerrecover the cost ofthe preciousi iesmetal thein smelting process more efficiently. | | | Decision: After deliberation, Authority granted in-principle approval for setting up a refinery. | |

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Authority directed to identify space and float Expression of Interest, Authority also mentioned that the selected vendor/contractor will act as a Unit and provide services to the Unitholders and earn foreign exchange for the Zone. Authority will also levy lease rent @ Rs. 4500/- per sq. mtr. ob| from the refinery unit towards infrastructure being provided i.e, land and building. Agenda Item No. 24:- Proposal for extension in AMCs awarded to agencies for providing various works and services.

and _ Authority was apprised that Office is in the process of preparation of tender documents the existing vendors need to be granted extension on the relevant work orders.

Decision: After deliberation Authority granted extension to all the service providers till | 31.12.2023 or till the finalization and awarding the tender whichever is earlier. Authority also directed that floating ofall the expired tenders to be taken on priority. Agenda Item No. 25:- Proposal for roll back of execution penalty to Re. 1/ - per sq. mtr. p.a. for delay in of sub lease agreement,

in —_ Authority was apprised that the Committee constituted as per the decision of Authority the 61° meeting dt. 22.06.2023 had examined the issue of roll back penalty and conveyed that various meetings with Maharashtra Govt. were convened for restoration of stamp duty exemption. However, the matter got delayed with the Govt for granting stamp duty exemption.

Decision: After deliberation, Authority was ofthe opinion to roll back the penalty from Rs. 100/per sq. mtr. to Re. 1/- per Sq. mtr. with retrospective effect. and also intimate the Ministry. theAuthority was also of the Opinion that in respect of the Unitholders who have paid the penalty, said amount should be adjusted against rent. It was decided to supersede the circular dt. 06.08.2010 increasing the penalty from Re. 1 to Rs. 100 per sq. mtr. p.a. It was further decided that this exemption is being extended in the public interest and valid for the lease deeds to be executed on or before 31.03.2024. | Agenda Item No. 26:- Proposal for procurement of PA system and other IT-Equipments.

| Authority was apprised that IT Department has requested for procurement of hardware equipments amounting to Rs. 7,77,373/- through GeM portal as it was seen in the past on many occasions, the audio equipments are not functional and need to be hired from outside.

Decision: After deliberation Authority approved the proposal for procurement of required hardware items through Gem portal

Agenda Item No. 27:- Updated Status on the implementation of PRAVESH Gate Pass System.

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Authority was informed that Office is in the process of implementation of PRAVESH gate pass system. In the meanwhile, letters were received from SGJMA and SEEMA stating that they are unable to make online payments and also requested for waiver off gate pass charges. Accordingly a Notice was issued on 28.09.2023 modifying the circular no. 31 dt. 21.09.2023.

Decision: After deliberation Authority noted the issue and decision of the same is mentioned in the Table agenda mentioned below.

Table Agenda Item No 01:- Waiver of gate-pass charges in new PRAVESH Gate Pass System.

Authority was informed that SGJMA, SEEMA and EPCES had requested for waiverof gatepass charges in the new gate pass system as the increase in the charges is an additional financial burden on the Units. Hence, a meeting was convened with the Association members on the following points - a. waiver of charges on issuance of gate-passes |

• b. Gate no. 1 to be kept open 24 x 7 for entry and exit of employees and vehicles

• c. Unit to have both provisions of QR code on mobile phone and printed paper passes with QR code for daily gate pass.

It was informed to the Authority that a decision needs to be taken on the following -

• i. SEEPZ to regulate gate passes as per SEZ Act 2005 & Rules 2006 ii. Entry/exit and visit to multiple units to be tracked in new gate pass system — | iii. Cost of printing of gate pass to be borne by Authority iv.No penalty for non-surrender of expired passes After deliberation Authority decided the following -

• a. Implementation of Pravesh Gate pass system to be done in phase-wise manner ; b. 1%* phase to be implemented w.e.f. 01.11.2023 ; | c. Printing of new PRAVESH gate-pass to be borne by Authority ; d. Earlier Gate-pass charges to be retained at same level ; e. Modifications in the software application suggested by ADC (IT) to be discussed| with the service provider and to be updated accordingly expeditiously ;

• f. SOP to be defined in such manner that 2" verification of the gate passes to be at the Unit's level so as ? avoid any misuse of the gate passes. The meeting ended with a vote of thanks to the Chair. | This issues with the approval of the Chairperson, SEEPZ SEZ Authority,

Decision: After deliberation Authority decided the following -

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Development Commissioner,

Signed by Chanderpalsingh Chauhan Date: 23-10-2023 18:21 750 TERS TtRRER7A OVS d . Secretary/Jt.

SEEPZ SEZ Authority