Supplementary Agenda for 67th Meeting of the BoA for SEZ to be held on 9th October, 2015

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Supplementary Agenda for the 67th meeting of the Board of Approval to be held on
9th October, 2015, in the Room No. 47, Udyog Bhawan, New Delhi

Item No. 67.7: Requests for Co-developer

(1) Request of M/s. Mundra Solar Technopark Pvt. Ltd. for co-developer in the multi product SEZ at Mundra, Kutch, Gujarat, being developed by M/s. Adani Ports and Special Economic Zone Ltd.

The above mentioned SEZ stands notified over an area of 6456.3349 hectares.

M/s. Mundra Solar Technopark Pvt. Ltd. has been given approval by the BOA in its 65th Meeitng held on 19.05.2015 a co-developer in the aforesaid SEZ to develop, operate and maintain Electronics Manufacturing Cluster (EMC) and related infrastructure facilities & services for electronic products including solar energy equipments, its ancillaries etc, over an area of 207.20 hectares. The relevant portion of the minutes of the said BOA meeting are given below:-

“After deliberations, the Board approved the proposal of M/s. Mundra Solar Technopark Pvt. Ltd. as co-developer to develop, operate and maintain Electronics Manufacturing Cluster (EMC) and related infrastructure facilities & services for electronic products including solar energy equipments, its ancillaries etc, over an area of 207.20 hectares, in accordance with the co-developer agreement entered into with the developer subject to standard terms and conditions as per SEZ Act and Rules and also subject to the project being approved by the DeitY.”

Now M/s. Mundra Solar Technopark Pvt Ltd has requested for increase of Electronic Manufacturing Cluster (EMC) area from 207.20 hectares to 259.70 hecatres. Co-developer has informed that during detailed planning and engineering and also during discussions with certain solar energy equipment manufacturers, they have realized that such increase in EMC area would help them to have better integrated infrastructure development. The Co-developer has also made application to Department of Electronics & IT on 9.9.2015 for increase in area of the project.

Co-developer agreement and lease deed in respect of the additional area has not been enclosed.

DC, APSEZ has recommended the proposal. The request of the co-developer is submitted for consideration of BoA.

Item No. 67.8 : Requests for extension of LoP beyond 3rd Year onwards

 As per Rule 18(1) of the SEZ Rules, the approval Committee may approve or reject a proposal for setting up of Unit in a Special Economic Zone.  Cases for consideration of extension of Letter of Permission (LoP)s i.r.o units in SEZs are governed by Rule 19(4) of SEZ Rules.

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 Rule 19(4) states that an LoP shall be valid for one year. First Proviso grants power to DCs for extending the LoP not exceeding 2 years. Second Proviso grants further power to DCs for extending the LoP for one more year but subject to the condition that two-thirds of activities including construction, relating to the setting up of the Unit is complete and a Chartered Engineer’s certificate to this effect is submitted by the entrepreneur.  Extensions beyond 3rd year (in cases where two-third activities are not complete) and 4th year are granted by BoA.  BoA can extend the validity for a period of one year at a time.
 There is no time limit up to which the Board can extend the validity.

(i) Request of M/s. Hi-Tech Inforamtion Pvt. Ltd a unit in the multi product SEZ being developed by M/s. Falta SEZ, Kolkata for extension of LoP beyond 30.09.2015.

The above mentioned unit was granted LoP on 14th September, 2011. The unit has been granted three extensions, the validity of which is expiring on 30th September, 2015.

The DC in his letter dated 29th September, 2015 has stated that the Unit could not perform its commercial production during the last four years due to circumstances beyond its control. The Zone further states that the Unit has assured that their plant is 100% ready for commissioning and the team of engineers from overseas is scheduled to arrive on 10.10.2015.

DC, Falta has requested extension of validity of the LOP for a further period of six months beyond 30.09.2015.

The request is placed before BoA for its consideration.

(ii) Request of M/s. Alstom Bharat Forge Power Pvt. Ltd. a unit in the multi product SEZ being developed by M/s. APSEZ, Mundra for extension of LoP beyond 2.2.2015.

M/s. Alstom Bharat Forge Power Ltd., was granted LoP for setting up a unit in the above mentioned SEZ, vide LoP dated 3rd February, 2010. The unit has been granted four extensions validity of which was upto 02.02.2015.

The unit has requested for further extension of the validity of the LoP for two years, i.e., upto 2nd February, 2017 giving a detailed explanation regarding the status of their project and also the reason for missing the project implementation deadline. It has been stated that they were unable to do construction activity at the site since May, 2012 when the Hon’ble High Court of Gujarat stopped all construction work at APSEZ due to absence of Environment Clearance to APSEZ, Mundra. Now, the Ministry of Environment & Forest has accorded its environment clearance to APSEZ on 15.07.2014 with certain specific and general conditions.

DC, Mundra has recommended the proposal for extension for one year.

The request of the unit is accordingly placed before BoA for its consideration.

(iii) Proposal of M/s Plastic Processors & Exporters Pvt. Ltd. for renewal of LoA for next five years in terms of Rule 18(4) of SEZ Rules, 2006

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M/s Plastic Processors & Exporters Pvt. Ltd. was issued LoA dated 05.11.1997 for (i) Plastic agglomerates/ granules and plastic component and articles (ii) Production of silk yarn and (iii) trading activities. Last LoA of the unit was valid upto 30.11.2013 and the unit vide its letter dated 19.08.2014 has requested to renew their LoA for another five years in line with extension granted to plastic reprocessing units by 60th BoA meeting held on 08.11.2013. The matter was earlier included in the agenda for the 65th BOA held on 19th May, 2015 but the same was deferred. Information about compliance with conditions imposed by BOA while renewing the LOP and also the performance of the unit in achieving mandatory physical exports and unauthorized capacity enhancement, if any, is awaited from DC, NSEZ.
The request of the unit is accordingly placed before BoA for its consideration.

Item No. 67.9 :Aurhorized Operations

(i) Proposal of M/s Cochin Port Trust, for amendment of authorized operations in connection with the development of Muti-User Liquid Terminal approved for M/s. Indian Oil Corporation.

Formal approval was granted to the Developer on 18.04.2006. The above mentioned SEZ stands notified as on date. The SEZ became operational on 25.08.2013.

M/s Indian Oil Corporation Limited, Cochin has been accorded co-developer status on 17th June, 2011 for developing of storage facilities for LPG, laying interconnection pipeline and setting up an inland LPG container (Tanker) Station in the above SEZ.

M/s. Indian Oil Corporation Limited, has been granted approval for the following activity as authorized operations by BOA in its 62nd meeting held on 24th July, 2014:-

(i) Construction of a main jetty for handling of LPG, Crude, POL products, Bankers, Chemicals and other liquids to be funded by M/s. Indian Oil Corporation Ltd., co- developer of the SEZ
(ii) Construction of a Barge loading jetty for handling bunkers to be funded by Cochin Port Trust.

Now M/s. Cochin Port Trust has requested for an amendment to the above mentioned
approval of the BOA decision to the effect that “construction of a barge loading jetty for handling bunkers’ is made an authorized operation on the part of the Developer i.e. construction of main jetty will remain as the authorized operation of Indian Oil Corporation Limited and the 2nd activity of construction of barge loading jetty will become the authorized operation of Cochin Port Trust.

DC CSEZ has recommended the proposal.

The request may be placed before BoA for its consideration

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