Agenda for the Approval Committee meeting held on 03.03.2025 -FESTUS-SEZ

सोमवार, Ǒदनांक 03 माच[, 2025 को ͪवकास आयुÈत, सीÜज़-सेज़ कȧ अÚय¢ता मɅ मेसस[ फेèटस Ĥॉपटȹज Ĥाइवेट ͧलͧमटेड-सेज़ के आईटȣ/आईटȣईएस के ͧलए ¢ेğ ͪवͧशçट ͪवशेष आͬथ[क ¢ेğ के ͧलए अनुमोदन सͧमǓत कȧ बैठक। Meeting of the Approval Committee for Sector Specific Special Economic Zone for IT/ITES of M/s. Festus Properties Private Limited - SEZ under the Chairmanship of Development Commissioner, SEEPZ-SEZ on Monday, 03rd March, 2025.

सूचकांक / INDEX

काय[सूची मद सं. Agenda Item No.

ͪवषय Subject काय[सूची मद सं. 01 Agenda Item No. 01 : - Ǒदनांक 30.01.2025 को आयोिजत बैठक के काय[वृƣ कȧ पुिçट। Confirmation of minutes of the meeting held on 30.01.2025. काय[सूची मद सं. 02 Agenda Item No. 02 : - मेसस[ एल एंड टȣ हाइĜोकाब[न ͧलͧमटेड के ͪवƣ वष[ 2019-20 से ͪवƣ वष[ 2023-24 के ͧलए Ĥदश[न कȧ Ǔनगरानी।

Monitoring performance for the FY 2019-20 to FY 2023-24 of M/s. L & T Hydrocarbon Ltd. काय[सूची मद सं. 03 Agenda Item No. 03 : - मेसस[ टाटा कंसãटɅसी सͪव[सेज ͧलͧमटेड (यूǓनट-II) (एलओए-13) के ͪवƣीय वष[ 2022-23 के ͧलए Ĥदश[न कȧ Ǔनगरानी। Monitoring performance for the FY 2022-23 of M/s. Tata Consultancy Services Limited (Unit-II) (LOA-13) काय[सूची मद सं. 04 Agenda Item No. 04 : - मेसस[ टाटा कंसãटɅसी सͪव[सेज ͧलͧमटेड (यूǓनट-IV) के दूसरे Þलॉक के 5वɅ वष[ यानी ͪवƣ वष[ 2019-20 और तीसरे Þलॉक अवͬध के पहले से चौथे वष[ यानी ͪवƣ वष[ 2020-21 से ͪवƣ वष[ 2023-24 के ͧलए Ĥदश[न कȧ Ǔनगरानी करना।

Monitoring performance for the 5th year of 2nd Block i.e. FY 2019-20 and 1st to 4th year of 3rd Block period i.e. FY 2020-21 to FY 2023-24 of M/s. Tata Consultancy Services Ltd (Unit-IV).

GOVERNMENT OF INDIA, OFFICE OF THE DEVELOPMENT COMMISSIONER, SEEPZ SPECIAL ECONOMIC ZONE, GOVT. OF INDIA, ANDHERI (EAST), MUMBAI

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AGENDA NOTE FOR CONSIDERATION OF APPROVAL COMMITTEE

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a. Proposal : Monitoring of the performance of M/s. Tata Consultancy Services Ltd (Unit-IV) an IT/ITES unit located at 9th, 10th, 11th, 12th & 13th Floor, Kensignton, B Wing, Powai, Mumbai-400 076 for 5th year of 2nd Block i.e. FY 2019-20 and 1st to 4th year of 3rd Block period i.e. FY 2020-21 to FY 2023-24. b. Specific Issue on which decision of AC is required: -
Monitoring of the performance of the unit for 5th year of 2nd block i.e. FY 2019-20 and 1st to 4th year of 3rd Block period i.e. FY 2020-21 to FY 2023-24, in terms of Rule 54 of SEZ Rules, 2006. c. Relevant provisions of SEZ Act, 2005 & Rules, 2006/Instruction/
Notification :- As per Rule 54 of SEZ Rules, 2006 “Performance of the Unit shall be monitored by the Approval Committee as per guidelines given in Annexure appended to these rules”. d. Other Information: - Approved Projections: (2nd Block Period) (Rs. in Lakhs.)

2015-16 2016-17 2017-18 2018-19 2019-20 Total FOB Value of Exports 41000.00 43000.00 46000.00 49000.00 50000.00 229000.00 FE Outgo 1150.00 950.00 650.00 450.00 350.00 3550.00 NFE 39850.00 42050.00 45350.00 48550.00 49650.00 225450.00

Approved Projections: (3rd Block Period) (Rs. in Lakhs.)

2020-21 2021-22 2022-23 2023-24 2024-25 Total FOB Value of Exports 87100.00 90900.00 103000.00 104400.00 105900.00 491300.00 FE Outgo 1150.00 950.00 650.00 450.00 450.00 3550.00 NFE 85950.00 89950.00 102350.00 103950.00 105550.00 487750.00

e. Performance as compared to projections: a. FY 2019-20 for 2nd block. (Rs. in Lakhs)

Year Cumulative Projections NFE Cumulative NFE Achieved As per APR (Coloumn 9) Cumulative % NFE Achieved 2015-16 39850.00 335245.00 841.27 % 2016-17 81900.00 268869.44 328.29 % 2017-18 127250.00 361378.78 283.99 % 2018-19 175800.00 466300.00 265.24 % 2019-20 225450.00 82295.14 36.50 % Year Export FE OUTGO Raw Material (Goods/Services) C.G. import Other Outflow

Projected Actual Projected Actual Projected Actual Actual 2015-16 41000.00 87386.00 N.A. N.A. 2800.00 1487.00 0.00 2016-17 43000.00 94331.00 16.00 0.00 2017-18 46000.00 93254.27 119.96 414.83 2018-19 49000.00 107922.17 119.17 2658.72 2019-20 50000.00 95561.82 81.50 13043.45 Total 229000.00 478455.26 1823.63 16117.00

b. FY 2020-21 to 2023-24 for 3rd block. (Rs. in Lakhs) Year Export FE OUTGO Raw Material (Goods/Services) C.G. import Other Outflow

Projected Actual Projected Actual Projected Actual Actual 2020-21 87100.00 91132.44 NA NA 1000 20.52 7954.62 2021-22 90900.00 85551.07 800 2.41 18451.36 2022-23 103000.00 119689.27 500 0.00 60641.32 2023-24 104400.00 156599.41 300 7.22 65617.11 Total 385400.00 452972.19 2600 30.15 152664.41

c.Cumulative NFE achieved :
i. FY 2019-20 for 2nd block. (Rs. in Lakhs)

Year Cumulative Projections NFE Cumulative NFE Achieved As per APR (Coloumn 9) Cumulative % NFE Achieved 2020-21 85950.00 165335.69 192.36 % 2021-22 175900.00 232361.24 132.10 % 2022-23 278250.00 291310.24 104.69 % 2023-24 382200.00 382157.86 99.99 %

ii. FY 2020-21 to 2023-24 for 3rd block

Other Information: LOA No. & Date

1. SEZ/HIRA-MUM/(15)/LOA-15/2009- 10/25/5224, Dated 30.07.2009

2. SEEPZ-SEZ/NEW-SEZ/HIRA- MUM/13/2010-11/3398, Dated 25.02.2025

3. SEEPZ-SEZ/NEWSEZ/HIRA- MUM/12/2010-11/10312, Dated 07.09.2020 Location of Unit Unit at 9th, 10th, 11th, 12th & 13th Floor, Kensignton, B Wing, Powai, Mumbai-400 076 Validity of LOA 31.03.2025 Item(s) of manufacture/ Services Information Technology Products, Software/IT Services & IT Enabled Date of commencement of production 01.04.2010 Execution of BLUT Yes Validity of Lease Agreement Yes Pending CRA Objection, if any

Pending Show Cause Notice/ Eviction Order/Recovery Notice/ Recovery Order issued, if any Yes,

1. The Approval Committee in its meeting held on 28.07.2024 has approved TCS unit III (LOA-15) into TCS Unit-II (LOA-13) with revised projection for further period 1 year.

2. The Specified Officer, Festus-SEZ vide letter dated 16.07.2024 forwarded the draft SCN i.r.o M/s TCS Ltd. (I, II, III, IV) and same copy endorsed to this office and informed that M/s. TCS Ltd. (I, II, III & IV), Festus SEZ had erroneously availed IGST duty exemption/benefits in respect of items that were not covered in the Letter of Approval (LOA) and Bond-Cum-Legal- Undertaking (BLUT) also informed that, as per CBEC Circular No 11/2017-Customs dated 31.03.2017, draft demand/show cause notice were prepared and forwared for adjudication nad necessary action in the matter.

3. Order No.02, dated 03.09.2024 issued by DC sir regarding TCS has erroneously availed IGST duty exemption/benefits in respect of items that were not covered in the Letter of Approval (LOA) and Bond- Cum-Legal-Undertaking (BLUT).

4. Commissioner of Customs (General), ACC/Mumbai has issued the Order-In- Original dated 29.10.2024 to M/s. Tata Consultancy Pvt. Ltd. and copy endorsed to this office i.r.o. M/s. Tata Consultancy Pvt. Ltd. (I,II,III & IV) has erroneously availed IGST duty exemption benefit in respect of items not covered in the Letter of Approval (LOA) and Bond-cum-Legal- Undertaking (BLUT). It is noticed that, they have mentioned in point No. 24 that, “I find that the Development Commissioner has failed to notice that, the Rule 27(2) of the Special Economic Zones (SEZ) Rules, 2006 provides the Development Commissioner right to grant exemptions but subject to the conditions as prescribed or specified in the Letter of Approval. In this case the items were procured which were not covered by the Letter of Approval (LOA) without payment of IGST claiming unavailable exemption and therefore, the said items as considered the

Development Commissioner cannot be made eligible for retrospective effect for duty free procurement as I find that Authorized operations has to be specified in the Letter of Approval, clearly specifying the items of manufacture or particulars of service activity, including trading or warehousing as per Rule 19 of SEZ Rules. ” In this connection, This office has clarified vide letter dated 29.01.2025 that, As per Rule 27(2) of the Special Economic Zones (SEZ) Rules, 2006, “In case of any doubt as to whether any goods or services are required by a Unit or Developer for authorized operations or not, it shall be decided by the Development Commissioner” this office has issued Order No.02, dated 03.09.2024 and Corrigendum to Order No. 02/2024, Dated
04.11.2024 and inform that, There is no matter arise to grant exemption with retrospective effect. The Order was passed to clarify the eligibility of the goods & services used by the unit in terms of Rule 27(2) of SEZ Rules, 2006. Projected Employment for the block period

Men – 2100 Women – 1600 Total - 3700 Area allotted (in sq. ft.) 267330 Sq. Ft.

(Area Sq. Ft./No. of Employees) Area available for each employee per sq.ft. basis (area / no. of employees)

108.01 Sq. Ft. Building 8160.64 Plant & Machinery 3525.34

Investment till date (Rs. In Lakhs)

TOTAL 11,685.98 Quantity and value of goods exported under Rule 34 (unutilized goods) N.A. Value Addition during the monitoring period N.A. Whether all the APRs being considered now has been filed well within the time limit, or otherwise.

If no, details of the Year along with no of days delayed to be given. Yes

The Specified Officer report vide letter dated 24.02.2025 has submitted reported as detailed below:
A. EXPORT- (Rs. in Lakhs and USD in Millions) Year/Period Figures as per APR Figures as per Softex/SB / Customs Records (INR) Difference if any Reason for Difference/Remark in INR as conveyed by the unit INR USD INR USD INR USD

(1) (2) (3) (4) (5) (6) = (2) – (4) (7) = (3) – (5) (8) 2019-20 95,561.82 Onsite +offsite 126.68

53259.38 offsite 70.60 42302.44 55.44 i)Ex. Rate Difference ii) Credit notes are issued for each year by the supplier which are included in the FOB value but not in the trade data. iii)the unit Considers 2020-21 91,132.44 Onsite +offsite 120.81

32054.58 offsite 44.00 59077.42 76.81

2021-22 85,551.67 Onsite +offsite 113.61

41581.47 offsite 55.22 43970.2 58.39 offsite & onsite whereas the figures as per Softex is offsite data 2022-23 Export_119698

Offsite50,396.45 Onsite69,292.82 206.56 57811.90 70.31 61877.37 75.24 I)Export figure include offsite and onsite ii)Ex. Rate Difference iii)Credit notes are issued for each year by the Customer which are included in the FOB value but not in the trade data iiii) Consider Data from May-2022 to Apr- 23 2023-24 Export_156599

Offsite60,320.21 Onsite96,279.19 190.44 57913.14 70.43 98685.86 120.01 i)Export figures include offsite and onsite ii)Ex. Rate Difference iii)Credit notes are issued for each year by the Customer which are included in the FOB value but not in the trade data iiii) Consider Data from May-2023 to Apr- 24

B. IMPORT
(i) Capital Goods including procurement done on IUT (from SEZ, EOU, STPI, EHTP) basis
(Rs. In Lakhs and USD in Millions) Year/ Period Figures as per APR Figures as per Softex/SB / Customs Records (INR) Difference if any Reason for Difference/Remark in INR as conveyed by the unit INR USD INR USD INR USD

(1) (2) (3) (4) (5) (6) = (2) –( 4) (7) = (3) – (5) (8) 2019-20 81.50

0.1076

81.50

0.1076

Nil Nil

2020-21 20.52

0.0280

20.52

0.0280

Nil Nil

2021-22 2.41

0.0032

2.41

0.0032

Nil Nil

2022-23 0.0 0.00 0.0 0.00 Nil Nil

2023-24 7.22 0.00859 7.22 0.00859 Nil Nil

(ii) Raw material (Rs. In Crores and USD in Millions) Year/Period Figures as per APR Figures as per Softex/SB / Customs Records (INR) Difference if any Reason for Difference/Remark in INR as conveyed by the unit INR USD INR USD INR USD

(1) (2) (3) (4) (5) (6) = (2) –( 4) (7) = (3) – (5) (8) 2019-20 N.A N.A

2020-21 N.A N.A

2021-22 N.A N.A

2022-23 N.A N.A

2023-24 N.A N.A

C. BLUT

1 Value of BLUT Executed (Duty foregone) (including for CG / Raw Material / Services) Value of Additional BLUT executed Year: BLUT amount:

Year:​ BLUT amount:

TOTAL value of BLUT Executed: in Lakhs

157248000

Nil

1572.48

2 Total Duty Foregone on goods & services procured (Category-wise BLUT value utilized separately for imported and indigenous goods and services) This should be based on BLUT worksheet which provides for estimated value and duty foregone separately for each category of procurement.

FY Goods (Imported & Indigenous)[Rs. in Lakhs] Services [Rs. in Lakhs] 2019-2020

2020-2021 52.9

2021-2022 31.1

2022-2023 1.977

2023-2024 36.41 292.92 Total 122.387 250.805 3 Has the Unit procured goods and or services without having sufficient balance in their BLUT? If yes, Month & Year when the BLUT was exhausted Details of the consignments and Total value of Goods procured without having sufficient or nil balance in BLUT No, we have sufficient balance in BLUT (d) Employment made as on date (As on end of block period / year up to which monitoring is being done) (March 2024) Gender As per the LOA (Form F) As on 31-03-2024 Men 2100 1618 Women 1600 857 Total 3700 2475

(e) Details of pending Foreign Remittance beyond Permissible period, if any (As on 31stMarch, 2024)

To cross-check the same and verify whether necessary permission from AD Bank / RBI has been obtained.

110 cases pending As on 31st March, 2024 and also they have taken extension letter for pending Foreign Remittance beyond Permissible period.

(f) Whether all Softex has been filed for the said period. If no, details thereof.

SO, to also check whether unit has obtained Softex condonation from DC office / RBI and if approved, whether they have filed such pending Softex. Yes all Softex have been filled

(g) Whether all Softex has been certified, if so till which month has the same been certified. If not, provide details of the Softex and reasons for pendency. Yes, till Jan_2025_Certified

(h) Whether unit has filed any request for Cancellation of Softex No (i) Whether any Services provided in DTA / SEZ/EOU/STPI etc. against payment in INR in r/o IT/ITES Unit during the period. If yes, details thereof (year wise details to be provided) No (j) SO to verify and certify whether the unit has updated the BLUT ledger Module in SEZ Online.

(k) Has the unit cleared any Capital Goods procured duty free, in DTA against payment of Duty, or otherwise? Full details to be provided along with value of assets and duty discharged Nil

(l) Is the unit sharing any of their infrastructures with other units or are utilizing infrastructure of another unit in the same or other SEZ. If so, details thereof, including the details of the unit with whom the sharing is being made, and the payment terms

If approval for sharing of common infrastructure has been obtained from UAC / DC office, the date of UAC / Approval letter to be indicated N. A (m) Whether all DSPF for services procured during the said monitoring period under consideration has been filed by the unit and whether the same has been processed for approval by the SO. They have filed 1006 DSPF invoices, however 256 are approved and 752 are pending for approval

(n) Whether unit has filed all DTA procurement w.r.t. the goods procured by them during the monitoring period for the relevant period. If no, details thereof N. A (o) Details of the request IDs pending for OOC in respect of DTA procurement on the date of submission of monitoring report N. A (p) Has the unit set up any cafeteria / canteen / food court in unit premises? If yes, whether permission from UAC / DC office has been issued, or otherwise office has been issued, or otherwise

Whether unit has availed any duty paid goods / services for setting up such facility?

If yes, whether unit has discharged such duty / tax benefit availed? details to be given including amount of duty / tax recovered or yet to be recovered

N.A

(q) Whether any violation of any of the provisions of law has been noticed / observed by the Specified Officer during the period under monitoring N. A

Further, Specified Officer, Festus-SEZ has informed that, the above figures are based on the details furnished by the SEZ unit and data available on SEZ Online. These may be taken on records for the purpose of monitoring of Performance of SEZ unit for the period 2019-20 to 2023- 24 of M/s. Tata Consultancy Services Ltd. (Unit -IV), Festus SEZ, Powai Mumbai. Findings 1. This is 5th year performance secrutiny i.e. 2019-20 of the 2nd block period and 1st to 4th years performance scrutiny i.e. 2020-21 to 2023-24 of the 3rd block period. 2. The unit has achieved export revenue of Rs. 95561.82/- Lakhs as against projected export of Rs. 50000.00/- Lakhs i.e.191.12% during the period for FY 2019-20. 3. The unit has achieved export revenue of Rs. 91132.44/- Lakhs as against projected export of Rs. 87100.00/- Lakhs i.e.104.63% during the period for FY 2020-21. 4. The unit has achieved export revenue of Rs. 85551.07/- Lakhs as against projected export of Rs. 90900.00/- Lakhs i.e.94.12% during the period for FY 2021-22. 5. The unit has achieved export revenue of Rs. 119689.27/- Lakhs as against projected export of Rs. 103000.00/- Lakhs i.e.116.20% during the period for FY 2022-23. 6. The unit has achieved export revenue of Rs. 156599.41/- Lakhs as against projected export of Rs. 104400.00/- Lakhs i.e.150% during the period for FY 2023- 24. 7. There is no CRA pending. 8. SCN is pending. 9. The APR for the FY 2019-20 to 2023-24 has filed withing presciribed time. F.Y. Submission Date 2019-20 28.12.2020 2020-21 20.09.2021 2021-22 27.06.2022 2022-23 07.07.2023 2023-24 03.07.2024

It is observed that,

1. Unit has worongly mentioned “period reporting on APR” from FY 2019-20 to 2023-24.
2. Unit has wrongly mentioned figures in Coloumn No.4(B) (vi) in the APR for the period 2019-20.
3. Unit has wrongly mentioned figures in Coloumn No.4(B) in the APR for the period 2020-21 to 2023-24.

e. Recommendation:

The proposal of the unit based on the FSR in terms of Rule 54 of SEZ Rules, 2006 is submitted to the Approval Committee for consideration.

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