DGFT Committee Minutes

NC-1 Offline Minutes

Meeting No.NC/1/MEET/Feb./202324/22 Dated 29.02.2024

|S!_No.14|||||||
|---|---|---|---|---|---|---|
|M. No.: NC/1/MEET/Feb./202324/22 (OFFLINE||||||Status of case|
|CASES) Dated 29.02.2024|M/s. Andritz Hydro Pvt. Ltd., Raisen||||||
|AA No.0510233247 dt.23.12.2008|||||||
|HQ. F. No.: 01/80/050/01612/AMO09|Subject:||Request|for<br>re-fixation|of||Approved|
|RLA No.:|norms|in|respect of|export product|at||
||S.No.3,|namely“NozzleAssembly”.|||||

Case History: In terms of para 4.17 of the HBP, M/s. Andritz Hydro Pvt. Ltd., Raisen has, vide representation dt.02.06.23 (received on 03.01.24) & mail dt.19.10.23, applied for review of NC-I decision taken in Case No.8/40/80ALC2/2008 considered in Meeting No.08/11 held on 07.06.2010, in respect of Item No.3 (Nozzle Assembly) (MoM copy enclosed).

2. The firm has sought apology for such delayed response to the said NC decision. It has requested to condone the delay on the grounds that it was the period when lots of changes of shuffling the job responsibilities were took place inside it and the key person, who were dealing with the matter had left the organization.

3. The relevant part of the minutes in respect of which the firm wants review is as under:-

“3. Item No.3 (Nozzle Assembly)- Item No.14 to 28 of import is used for the manufacture of export item No.3. The net weight of imported raw material is 80.3 MT. It also contains some raw material. But the export weight is 55.8 MT. Since export weight is less than the net content of imported raw material, the same may be deleted.”

4. The firm has stated that the above NC decision is anomalous on account of following reasons:-

(i) The NC has anomalously considered incorrect weight of the export product.

(ii) The NC has deleted export item No.3 and related import items on the basis of incorrect assumption of the weight of export product. 5. In support of the above statement, the firm has submitted Chart/Diagram/Drawing of the export product no.3 and detailed weight calculation for the export product, along with various other details.

6. In view of the facts/details submitted by it, the firm has requested for reinstatement of the export item No.3 and the related inputs at S.Nos.14 to 28.

hs The matter has been referred to MHI for examination and comments. Comments of MHI received.

Decision: The Committee considered the case as per agenda and noted that the case was earlier approved in NC meeting dated 25.05.2010 and the export item No. 3 was deleted. Now, the applicant has applied for review of the earlier decision and requested for reinstatement of the export item No. 3 and related inputs at SI. Nos. 14 to 28. After due deliberation, the Committee decided to revise the ad-hoc norms as per comments of MHI OM No. DES1/0510233247/2024-TSW dated 26.02.2024 (copy attached).

RA concerned may take suitable consequential action accordingly.

==> picture [156 x 105] intentionally omitted <==

----- Start of picture text -----<br> A .coatr KarPwie<br>7 he GA fe Fae gn Trade<br><ici =o SENN 09 eereeTe gde<br>perv,Tas carsor ot FS eamnerc®<br> ate SOOe cont. of are<br>pire faet IDO? at industy<br>aSSIV Sopot,of FasommercejE D &of inia<br>mMinisty “ark ye Pee<br>ML dat. Riew Dei<br>sar vawam<br>uayos ®<br>----- End of picture text -----<br>

==> picture [44 x 17] intentionally omitted <==

----- Start of picture text -----<br> Sl. No. 02<br>----- End of picture text -----<br>

==> picture [66 x 17] intentionally omitted <==

----- Start of picture text -----<br> Status of case<br>----- End of picture text -----<br>

==> picture [502 x 174] intentionally omitted <==

----- Start of picture text -----<br> CASES) Dated 29.02.2024 LIMITED<br>hoc norms<br>Case history: The Committee considered the case as per agenda and noted that the case was approved in M. No.<br>3/80-ALC2/2019dated 08.05.2019 as per written comments of DHI vide email dated 06.05.2019.However, the<br>applicant had requested for review of the ad-hoc norms.<br>The representation of the applicant was forwarded to DHI for examination of the case on 25.02.2020<br>followed by a reminder on 29.10.2020. As per comments of DHI, a deficiency letter was sent to the applicant on<br>13.08.2021for furnishing the following information:<br>1. Complete application with ANF 4A and all enclosures.<br>2. Background note of the request giving details of the deficiency letter issued & the corresponding reply in the<br>chronological order.<br>----- End of picture text -----<br>

==> picture [504 x 373] intentionally omitted <==

----- Start of picture text -----<br> Further, the Committee in its meeting dated 16.11.2021 noted that the applicant's reply was sent to DHI on<br>26.10.2021 for examination & comments. The representative of DHI informed vide letter dated 16.11.2021 that the<br>applicant's reply was incomplete and the applicant did not furnish the point-wise reply as asked in deficiency letter<br>dated 13.08.2021. Therefore, the Committee decided to ask again from the applicant for furnishing the requisite<br>information within 15days:<br>1. Complete application with ANF 4A and all enclosures.<br>2. Background note of the request giving details of the deficiency letter issued & the corresponding reply in the<br>chronological order.<br>Further, the Committee in its meeting dated 08.02.2022 noted that the applicant's reply was forwarded to DHI on<br>16.12.2021 for examination & comments. DHI vide latter dated 08.02.2022 stated that this is an old case and sought<br>for certain information. Therefore, the Committee decided to ask from the applicant for furnishing the following<br>information within 15 days:<br>1. Complete application with ANF 4A, ANF 4B with all enclosures like appendix 4E, Appendix 4K & Appendix<br>4H.<br>2. Background note of the request giving details of the deficiency letter issued & the corresponding reply in the<br>chronological order.<br>A deficiency letter dated 10.03.2022 followed by a reminder dated 19.05.2022 was issued to the applicant. Further,<br>the applicant's reply was sent to Consultant (Tech-3) on 22.07.202 for examination of the case. As per NC decision,<br>a reminder was issued to Consultant (Tech-3) on 26.09.2022 for expediting the comments.<br>This case was last considered by NC-1 in its meeting dt.28.04.23 and the decision of the Committee was as<br>under:-<br>“The Committee considered the case as per agenda and noted that Consultant (Tech-3) via email dated 30.10.2022<br>informed that the applicant's letter containing issues on which review is required is not available in file. Therefore,<br>the Committee decided to ask the applicant to submit a copy of review letter along with all the relevant documents<br>for examination of the case. Further, the Committee decided to refer this case to DHI for examination.<br>Case is deferred.”<br>Subsequently, the review letter along with all the relevant documents received from the applicant was referred to<br>MHI vide mail dt.26.02.24 for examination and comments.<br>Decision: The Committee considered the case as per agenda and decided to refer the case to Consultant (Tech-3)<br>for further examination and comments.<br>----- End of picture text -----<br>

==> picture [472 x 89] intentionally omitted <==

----- Start of picture text -----<br> Case stands deferred. (|<br>Perererererererar ana \ sitet Due<br>Vg GON opt ATS cry<br>‘ ¢ at 1OP art fe yndu><br>1 SH, SqniOTR of EP<br>----- End of picture text -----<br>

F. No. DES-1/0510233247/2024-TSW Government of India Ministry of Heavy Industries TSW Division

Udyog Bhawan, New Delhi Dated: 26 Feb, 2024

Oftice Memorandum

Subject:-M/s. Andritz Hydro Pvt. Ltd. Raisen, AA No. 0510233247 dt.23.12.2008

The Advance Authorization relates to supply of items for Teesta Stage-III project in Sikkim. The case was approved in NC meeting dated 25/05/2010, however. import items at S.Nos.14 to 28 (raw materials at S. Nos. 14 to 17 and components at S Nos.18 to 28) required for the export item “Nozzle Assembly with Deflector (Injector and Deflector System) appearing at S.No.3 were deleted. The reason for deletion was ambiguity in the weights of export product and imported items used in its manufacture.

Each set of export product comprises of 5 Nozzle assemblies and weight of each nozzle assembly is 9383 Kg. It appears that earlier each nozzle assembly was taken as 1 unit of export product and total weight of export product was calculated as 6x9.3 MT=55.8 MT. The firm has since clarified that each set of export product comprises of 5 Nozzle assemblies and has given material balancing and wastage calculation details. Thus. total weight of 6 sets of export product (each set comprising of 5 Nozzle assemblies) works out to 9383x5x6= 281.490 Kg.

MHI Input:

For the export Item at S. No. 3 i.e.; 6 sets of Nozzle Assembly with Deflector (Injector and Deflector System), each set comprises of 5 Nozzle assemblies - Total Weight 281,490 Kg

Import items at S. Nos. 14 to 17 as raw materials: Net weight contained in the 6 sets of export product is 80324 Kg. Total gross input quantity of 92372.6 Kg may be allowed inclusive of 15% wastage on net content basis (in line with earlier approval at S. No. 1).

Import items S. Nos. 18 to 28 as components: May be allowed under GN-4 for components with accountability clause.

R- Ses Feetet

(R. K. Jaiswal) Development Officer

==> picture [16 x 10] intentionally omitted <==

----- Start of picture text -----<br> To,<br>----- End of picture text -----<br>

DGFT (DES-1). Directorate General of Foreign Trade, Udyog Bhawan, New Delhi ~ 110011. Email: “DES-1, DGFT" nc1.dgft@nic.in;