Agenda for 69th Meeting of the BOA for SEZ held on 23rd February,2016

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Agenda for the 69th meeting of the Board of Approval to be held on
23rd February, 2016, in the Room No. 47, Udyog Bhawan, New Delhi

Item No. 69.1: Requests for extension of validity of formal approvals

BoA in its meeting held on 14th September, 2012, examining similar cases observed as under: -

“The Board advised the Development Commissioners to recommend the requests for extension of formal approval beyond 5th year and onwards only after satisfying that the developer has taken sufficient steps towards operationalisation of the project and further extension is based on justifiable reasons. Board also observed that extensions may not be granted as a matter of routine unless some progress has been made on ground by the developers. The Board, therefore, after deliberations, extended the validity of the formal approval to the requests for extensions beyond fifth years for a period of one year and those beyond sixth year for a period of 6 months from the date of expiry of last extension”.

(i) Request of M/s. Newfound Properties and Leasing Private Limited for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Juinagar, District Thane, Maharashtra, beyond
20th August 2014

Name of the developer:
M/s. Newfound Properties and Leasing Private Limited

Sector

: IT/ITES

Location:

Juinagar, District Thane, Maharashtra

Extension:

The developer has been granted four extensions, validity
period of which was upto 20th August, 2014.

Basic facts:

Formal approval to the developer was granted on
21st August, 2006. The SEZ stands notified as on date.

The developer has requested for further extension so as to implement the project.

The developer has made following investments/plans.

(i) Investment in Land

Rs. 40.92 crores (ii) Investment in infrastructure till 20.08.2013

40.95 crores (iii) Investment in infrastructure since last extension -
Rs. 53.58 crores (iv) Physical progress made since last extension was granted on 25.4.2014 – (a) concrete work (column and slab) upto 2nd floor slab for building no. B2 has been completed (b) RCC work for 3rd floor slab for building No. B2 is under progress (c) Base work for 14m access road (700m length) is completed and top layer concreting work is under progress and (d) sewage water drainage system and Nalla culvet construction work along the road length is completed.

Reason for delay – The developer have stated that the project was delayed due to the enormous undulation of the plot, inadequate connectivity to the plot from Thane-Belapur

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Highway, nuisance and pollution caused by the adjacent activities. The developer also informed that the global economic environment has not been conducive for green field project, thereby adversely affecting the demand for office spaces at new location.

DC SEEPZ has recommended the proposal for extension upto 20.08.2016.

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

(ii) Request of M/s. Indus Gene Expression Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotech and related activities at Kodur and Settipalli villages, Chilamathur Mandal, Anantapur District, Andhra Pradesh, beyond 13th February, 2016

Name of the developer:
M/s. Indus Gene Expression Ltd.

Sector

: Biotech and related activities

Location:
Kodur and Settipalli villages, Chilamathur Mandal, Anantapur District, Andhra Pradesh

Extension:

The developer has been granted two extensions, validity
period of which is upto 13th February, 2016.

Basic facts:

Formal approval to the developer was granted on
14th February, 2011. The SEZ stands notified as on date.

The developer has requested for further extension so as to implement the project.

The developer has made following investments/plans.

(i) Investment in Land

Rs. 0.87 crores (ii) Investment in building and other infrastructure

10.42 crores (iii) Investment in infrastructure since last extension -
Rs. 1.97 crores (iv) Physical progress

Finalized the vendors for lab establishment, such as electrical, flooring, lab benches, gas lines, fire safety, clean rooms, ETP and STP, lab instruments and released purchase orders to start the work

Reason for delay: The developer has stated that the project work has been slowed down unduly due to the bifurcation of the state of Andhra Pradesh into Telengana and Andhra Pradesh and various regulatory approvals from the state govt. related to industry establishment have been delayed because of the changes in administration, transfers and relocation of state employees.

DC VSEZ has recommended the proposal for extension for a period of one year.

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

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(iii) Request of M/s. Gopalpur Special Economic Zone Ltd. for further extension of validity period of its formal approval for setting up a multi product SEZ at Gopalpur, District Ganjam, Odisha beyond 17th December, 2015

Name of the developer:
M/s. Gopalpur Special Economic Zone Ltd.

Sector

: Multi-product

Location:
Gopalpur, District Ganjam, Odisha

Extension:

The developer has been granted six extensions, validity
period of which was upto 17th December, 2015.

Basic facts: Formal approval to the developer was granted on 18th June, 2007. The SEZ is yet to be notified. The proposal for notification of SEZ and change of name of the Developer from M/s. Gopalpur Special Economic Zone Ltd to M/s Tata Steel SEZ is under consideration in the Department.

The developer has requested for further extension so as to implement the project.

The developer has made following investments/plans

(i) Boundary wall completed (ii) Approach roads developed (iii) Construction of Anchor projects outside SEZ area worth Rs. 800 crores is under construction after necessary statutory clearances. (iv) 500.15 hectares land allotted by IDCO in favour of Tata Steel SEZ.

DC FSEZ has stated that State Government of Odisha has not recommended their extension of formal approval as yet. There is no development of incremental action on the ground in the last one year.

The recommendation of DC, FSEZ is as under :

(i) Formal approval may be extended by one year from the date of expiry i.e. upto 17.12.2016 for 500 hectares for which notification has been sought. (ii) Formal approval may be cancelled for the balance portion of land i.e. (1173 hectares – 500 hectares) = 673 hectares, since they have not been able to obtain possession of that land even after 8 years from the date of formal approval on 18.06.2007 and there is no concrete indication from the developer and from the State Government as to when the said land would be handed over/transferred in the name of the developer

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

(iv) Request of M/s Kandla Port Trust, developer of multi product SEZ at Kandla and Tuna, Gujarat for further extension of the validity period of formal approval, beyond 6th May 2016

Name of the developer:
M/s. Kandla Port Trust

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Sector

: Multi-product

Location

:
Kandla and Tuna, Gujarat

Extension

: The developer has been granted seven extensions, validity
period of which is upto 6th May, 2016.

Basic facts: Kandla Port Trust (KPT) was granted formal approval on 7th May, 2007. The SEZ is yet to be notified.

The developer has requested for further extension so as to complete his project.

The developer has following developments taken during last year:-

(i) On 30.03.2015 and 27.7.2015, Cabinet Secretariat (Project Monitoring Group) conducted meeting with Chief Secretary, Gujarat, which was attended by Chairman/Dy. Chairman, Chief Engineering and OSD (Estate) in which the matter regarding concurrence of GoG was discussed. (ii) The Principal Secretary, Revenue Department, GoG vide letter dated 23.11.2015 has informed that the “Non Encumbrance Certificate” shall be issued by the local authorities and thereafter, the industries and Mines department would initiate the process of approval of KPT’s approval. (iii) The concurrence for State Government is still awaited.

DC KASEZ has recommended the proposal for extension of formal approval.

The request is placed before BoA for consideration.

(v) Request of M/s. Saraf Agencies Private Ltd. for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Mineral based Industries at Chhatrapur, District Ganjam, Odisha, beyond 26th February 2016

Name of the developer:
M/s. Saraf Agencies Private Ltd.

Sector

: Mineral based Industries (sector-specific)

Location :
Chhatrapur, District Ganjam, Odisha

Extension : The developer has been granted four extensions, validity
period of which was upto 26th February, 2016.

Basic facts: Formal approval to the developer was granted on 27th February, 2009. The SEZ stands notified as on date.

The developer has requested for further extension so as to implement the project.

The developer has made following investments/plans:

(i) Rs. 46.76 crore for civil work (ii) Boundary wall – completed

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(iii) Construction of power of 500 KW has been received from SOUTHCO (iv) Approval received for drawing 3 MGD water from Rishikulya River (v) 3 Nos of bore wells constructed for availability of water. (vi) Civil work – infrastructure, approach road, etc almost completed (vii) Installation of plant and machineries are in progress. (viii) Operation of plant will start by 3rd/4th week of March, 2016.

DC FSEZ has recommended the proposal for extension by one year.

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

(vi) Request of M/s. G.P. Realtors Private Limited for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware & IT/ITES at village Behrampur, Bandhwari and Balola, Gurgaon, Haryana, beyond 25th January, 2016

Name of the developer:
G.P. Realtors Private Limited

Sector

: Electronic Hardware & IT/ITES

Location

:
Village Behrampur, Bandhwari and Balola, Gurgaon, Haryana

Extension : The developer has been granted six extensions, validity period of which was upto 25th January, 2016.

Basic facts: Formal approval to the developer was granted on 26th July, 2007. The SEZ stands notified as on date.

The developer has requested for further extension so as to implement the project.

The developer has made following investments/plans.

(i) Investment made on land till date is Rs. 187 crores and developing infrastructure Rs. 40 crores
(ii) Incremental Investment since last extension – 18 crores (iii) Physical progress till date – (a) boundary wall construction done on 11732 running ft. (b) leveling on area measuring 15 acres (c) Sheeting (temporary tin sheet) work done on whole site (d) demarcation and topographical survey of SEZ site (e) Resolved all takseem cases and land issues and (f) Aravali NOC and NOC from forest Department obtained.

DC NSEZ has recommended the proposal for extension of formal approval for a period of one year.

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

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Item No. 69.2 : 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.
 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 Kusum Healthcare Pvt. Ltd., a unit in Indore SEZ for extension of validity period of its LoP beyond 28th February 2016

 LoP issued: 14th June, 2010 for manufacture tablets, capsules, ointments, dry syrups & injections.  Extensions: 5 (five) up to 28th February, 2016  Request: For further extension.

The unit has requested for further extension so as to implement the project.

The unit has made the following investment/plans:-

S. No. Type of cost Total investment made so far (Rs. in lacs) Investment made during last one year and up to 30.11.2015 (Rs. In lacs) 1. Land cost 180.80 0 2. Ongoing building construction work, boundary wall, security block, temple, ETP/STP, underground tank for rain water harvesting etc 2271.97 1403.69 3. Pre-operative expenses 104 39.50 4. DG Set 6.45 6.45 Total 2563.22 1449.64

Physical progress till 30.11.2015:-

(i) Constructed RCC Factory shed of 13524 sq. mtr. on the allocation plot. (ii) Completed approx 80% of total civil construction, which is inclusive of OSD Block, Mezzanine Block, Admin Block and warehouse. (iii) Balance 20% work involves plastering of the building, construction of internal roads, doors and windows fitting work, flooring as per Pharma manifesting

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norms, security Block, ETP/STP underground rain water harvesting tank, boundary wall which is in progress and targeted to be completed up to March 2016. (iv) Placed purchase orders to various machine suppliers amounting to Rs. 1173.07 lacs in order to start erection of the plant and machinery well within time limits. (v) The civil work contractor has employed nearly 150 persons with heavy construction equipments and machinery to speed-up the construction work. (vi) The company has been regularly paid all the Government statutory dues including annual lease rent and maintenance charges to the developer. The power and water consumption bills are also paid

DC Indore SEZ has recommended the proposal of extension for one year.

The request is placed before BoA for its consideration.

(ii)
Request of M/s. Eternity Innovations & Technologies Pvt. Ltd., a unit in MIDC SEZ at Rajiv Infotech Park, Hinjewadi, Phase–III, Pune, Maharashtra for extension of validity period of its LoP beyond 8th January 2015

 LoP issued: 9th February, 2012 for information technology services, software engineering services, business process outsourcing, cloud computing & SaaS services.  Extensions: 3 (three) up to 8th January, 2016  Request: For further extension.

The unit has requested for further extension so as to implement the project.

The unit has made the following investment/plans:-

Particulars Investment made (in rupees) Land 16,500,000 Construction of backside boundary wall 4,60,000 SEZ and other service charges charged by MIDC 4,15,000 Professional consulting fees for various services 200,000 President’s & Director’s visit from USA for MIDC & SEZ related administrative tasks between 2007-2014 5,00,000 SEZ online registration 35,000 SEZ Annual online maintenance fee 11,400 year

Incremental investment made since last extension:-

Particulars Investment made (in rupees) Development charges, labour CESS & scrutiny fees for building plan approval 4,15,000 Water NOC, service charges, fire services charges 1,81,000

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SEZ online maintenance charges 28,500 Fire protection fund (charges by MIDC) 20,000 MPCB application charges 15,000 Land survey 10,000 President’s visit from USA for MIDC & SEZ related administrative tasks Approx 2,00,000 Building architecture & design service Approx 5,00,000 Professional consulting fees for various services 50,000

Physical progress made since last extension:- The unit could not start the physical construction of the building as they spent most of the time in obtaining various administrative approvals required to start the construction. By the time they received the building plan approval, timeline given by MIDC expired i.e. on September 12, 2015.

The various list of approvals obtained in last one year as follows:-

(a) Obtained building plan approval (b) Construction drawings completed (c) Land survey completed (d) Details RCC design is in progress (e) MPCB approval obtained
(f) Fire NOC obtained (g) Water NOC obtained (h) Extension from MIDC obtained in Dec. 2015 as it was expired in Sept. 2015.

DC SEEPZ has recommended the request of extension of LoP.

The request is placed before BoA for its consideration.

Item No. 69.3 : Requests for co-developer

(i) Request of M/s. HCL Technologies Limited for co-developer in the sector specific SEZ for IT/ITES at Madurai – Ilandaikulam, Tamil Nadu, being developed by M/s. Electronics Corporation of Tamil Nadu Limited

The above mentioned SEZ stands notified over an area of 11.70.5 hectares.

M/s. HCL Technologies Limited has submitted a proposal for becoming a co- developer in the aforesaid SEZ to develop operate and maintain IT/ITES to provide for 24 hrs uninterrupted power supply, central air conditioning, over an area of 6.75 acres.

Co-developer agreement dated 14th December, 2015 entered into with the developer has been provided. Lease Deed dated 3rd November, 2015 has also been provided. Lease period is 99 years. The lease shall pay a sum of Rs. 1 per year throughout the lease period of 99 years to the lessor as rent at the end of each year, such period commencing from the date of this deed. The lessee shall also pay from time to time to the lessor proportionate share of the common infrastructure development expenses (such as road/street light, service

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ducts/compound wall/water supply/electricity/sewerage treatment/internet and such other facilities as insisted by statutory agencies from time to time.

DC MEPZ has recommended the proposal.

The request of the co-developer is submitted for consideration of BoA.

(ii) Request of M/s. SJ Contracts Pvt. Ltd. for co-developer in the sector specific SEZ for Biotech at village Mahiri, Budruck, Taluka Haveli, District Pune, Maharashtra, being developed by M/s. SEZ Biotech Services Pvt. Ltd.

The above mentioned SEZ stands notified over an area of 16.12 hectares.

M/s. SJ Contracts Pvt. Ltd. had submitted a proposal for becoming a co-developer in the aforesaid SEZ for construction of factory buildings, laboratories suitable for manufacturing of bio-technology products, construction of cafeteria & canteen, fire protection system with sprinklers, fire & smoke detectors, rain water harvesting plant, land scaping & construction of water bodies, water supply distribution network, sewerage system network and building management system, over an area of 2.695 hectares.

Co-developer agreement dated 25th November, 2014 entered into with the developer has been provided. Draft Lease agreement dated 1st January, 2015 has also been provided. As per the agreement the developer shall remain the owner of the facility executed by the co- developer. The developer has agreed to lease an area of 100 sqm. for a period of twenty years. Construction of infrastructure will be carried out in 26950 sqm. for undertaking activities relating to provision and maintenance of infrastructure facilities. The co-developer shall pay Rs. 15000/- per month to the developer.

As the Co-developer has not submitted draft lease deed in respect of land area of 26950 Sq. Mtrs., DC SEEPZ SEZ had not recommended the proposal.

The above proposal was placed before the 66th BoA meeting held on 27th August, 2015. The minutes are as under:-

The Board observed that the proposal is not clear. After deliberations, the Board directed to DC, SEEPZ to discuss the matter with the client for understanding the business model of the applicant. Therefore, the proposal was deferred.

DC SEEPZ SEZ has stated that the proposal is purely contractual relationship between the developer and contractor, where the applicant will only construct the building and handover to the developer on its completion. According to Rule 3 (A) of SEZ Rules, 2006, co-developer status can be granted to carry out the authorized operations. It implies that the co-developer enter into the footsteps of the developer by investing in SEZ to carry out the authorized operations and also continue to remain in relation with the units on long term basis. As the applicant will only construction the building and handover to the developer, there is no long term investment. There will be no relation of the co-developer with the units for the purpose of recovering the return on investment through lease or other charges.

DC SEEPZ has not recommended the proposal.

The request of the co-developer is submitted for consideration of BoA.

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Item No. 69.4 : Proposals for setting up of SEZs

(i) Request of M/s. Cognizant Technologies Services Private Limited for setting up of a sector specific SEZ for IT/ITES at Nanakramguda village, Serilingampally Mandal, Ranga Reddy District, Telangana, over an area of 2.5161 hectares.

S. No Name of the Developer Location
Sector Area (in ha) Land Possession
State Govt. Recommen- dation Status of application (i) M/s. Cognizant Technologi es Services Private Limited Nanakramguda village, Serilingampally Mandal, Ranga Reddy District, Telangana IT/ITES 2.5616 Yes Yes (30.11.2015)
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DC VSEZ has recommended the proposal.

The proposal of the developer is submitted for consideration of BoA.

Item No. 69.5 : Miscellaneous cases

(i) Request of UP State Industrial Development Corporation Ltd. (UPSIDC) for conversion of existing handicrafts SEZ, Moradabad to (i) Textile and its broad-banded products (ii) broad banded IT/ITES/Electronic Components & Hardware manufacturing sector specific SEZ and (iii) Handicraft broad-banded with engineering sector SEZ.

Moradabad SEZ was notified in 2003 and became operational on 16.04.2007. At present SEZ is housing only 25 units out of which 14 units are in regular operation.

UPSIDC had submitted proposal for broad-banding of “Textile (including Apparels), Leather Products, Carpets & Rugs, Toys & Dolls, Sports items, Gems & Jewellery (Excluding precious metal) and Engineering (including hardware products)” sectors in the Handicraft sector SEZ at Moradabad as per Amendments in SEZ Rules issued by DoC on 12.08.2013 with subsequent clarification on 13.09.2013.

The proposal was placed in the 61st BoA meeting held on 3rd April, 2014. The minutes are as under:-

The Board, after deliberations, granted “in-principle” approval to the proposal from UPSIDC for conversion of existing 170.601 Ha of sector specific Handicraft SEZ into following three different SEZs at Moradabad subject to fulfillment of all necessary conditions including State Govt. recommendation and submission of documents in this regard:-

Broad-banded Textile sector including apparel, hosiery, fashion garments and wool (in 50.763 Hectares)

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Broad Banded IT with IT Enabled Services, Electronic Components & Hardware manufacturing, non-conventional energy, BPO (including legal, medical and similar services), KPO and R&D (in 10.084 Hectares).
3. Handicrafts with Engineering, including their broad banded other similar products in remaining area of 109.754 hectares:

Now, DC NSEZ has stated the State Government of UP vide letters dated 13.10.2014 and dated 19.11.2014 has submitted its recommendations in respect of above three proposals.
Further, MD, UPSIDC vide letter dated 16.11.2015 has submitted project report i.r.o. following SEZs along with land details and coloured map of the areas, etc:-

(a) Textile sector specific SEZ (b) IT/ITES, electronic Hardware & other similar manufacturing & services

DC NSEZ has recommended the proposal (Annexure-1).

The request is placed before BoA for its consideration.

(ii) Request of M/s. Adani Ports & SEZ Ltd. developer for clubbing of three notified SEZs in Mundra, Kutch, Gujarat

M/s. Adani Ports & SEZ Ltd. Developer of three SEZs at Mundra, Kutch, Gujarat has submitted a proposal for clubbing of these three notified SEZs.

APSEZ – I, a multi product SEZ was initially notified on 23.6.2006 and subsequently some more areas were notified from time to time by various notifications. Subsequently, all these notifications were merged and re-notified as a composite SEZ of MPSEZL (now known as APSEZL) vide notification dated 27th May, 2009. As on date the total area of the SEZ is 6456.3349 hectares. The SEZ is operational as on date.

APSEZ – II, a FTWZ was notified on 26th March, 2012, over an area of 168.41 hectares at Mundra, Kutch, Gujarat. The validity of formal approval has been extended by the DoC up to 3rd January, 2017.

APSEZ – III, a multi product SEZ was notified on 11th December, 2015, over an area of 1856.5335 hectares at Mundra, Kutch, Gujarat. The validity of formal approval has been extended by the DoC up to 23rd April, 2018.

The Developer has stated that they have master planned as a mega multi product SEZ. As per the original master plan the SEZ with an integrated world class development spanning the entire supply chain by way of multi modal connectivity, all utilities and industrial and social infrastructure facilities has been done for 10,000 hectares. They have developed various infrastructure facilities in the existing notified operational SEZs. Further, the multi product SEZ notified over an area of 1856.5335 hectares at the same location in Mundra is contiguous with the existing notified and operational SEZs.

As per third proviso to the Rule 5(2) (a) of the SEZ Rules, 2006, makes following provision:-

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“The Central Government may consider on merit the clubbing of contiguous existing notified SEZs notwithstanding that the total area of resultant SEZ exceeds 5000 hectares”.

DC KASEZ has stated that in consultation with DC APSEZ a committee was constituted for giving a report on the issue of clubbing of three notified SEZs of APSEZL.

The committee in its report has mentioned that there will be overall contiguity of the total area if the three SEZs are clubbed. Further, the committee has mentioned that the portions of the three SEZs are so interconnected to each other that through a single customs gate of clubbed SEZs (if clubbed, as proposed), can be reached. Requirement of customs and security staff would also be reduced. There is a large common boundary amongst the three SEZs.

DC KASEZ has recommended the proposal (Annexure–2).

The proposal of the developer is submitted for consideration of BoA.

(iii) Request of M/s. Telangana Industrial Infrastructure Corporation Limited (TSIIC), developer of sector specific SEZ for Biotechnology at Lalgadi Malakpet Village, Shameerpet Mandal, Ranga Reddy District, Telangana for increase in area of its SEZ

The above mentioned SEZ stands notified over an area of 20.44 hectares.

The developer has requested for addition of an area of 2.136 hectares, thereby making the total area of SEZ as 22.576 hectares.

DC VSEZ has recommended the request for increase the area of the SEZ.

The proposal of the developer is submitted for consideration of BoA.

Item No. 69.6 : Appeals before BoA

(i) Appeal of M/s. Robinson International Pvt. Ltd., a unit in FSEZ against order dated 25th May, 2015 of the Development Commissioner FSEZ/UAC

The Unit was issued LOA on 27.02.1997 for manufacture and export of Builder’s Hardware and allied products. The unit operated fully & discharged all its obligations under the LoP till March, 2010. Owing to adverse business conditions and financial difficulties the operation of the unit was suspended since April, 2010. As the unit was default in payment of the lease rent, DC FSEZ suspended the validity of LoP vide letter dated 02.04.2014. The unit preferred an appeal before 62nd BoA meeting held on 24.07.2014. After hearing the appellant, the Board decided as under:
The Board heard the appellant and after examining the matter, directed the DC FSEZ to renew the LoP of the unit. The Board also directed that the unit shall clear the pending rental and other dues within a period of next six months i.e. up to 24th January, 2015.

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The above decision of Board was informed to the unit by DC FSEZ vide letter dated 25.09.2014 followed by reminder dated 10.02.2015 with a request to clear the pending rental duties but no reply was received from the unit. The matter was placed in the UAC meeting held on 11.05.2015 and cancelled the LoP w.e.f. 25.01.2015.

The appellant has given following reasons for appeal:-

(i) The unit has stated that the demand of arrear rent of about Rs. 60.28 lakhs was grossly over assessed, the dues could not be cleared. The management of unit, since November, 2013 had regularly taken up the matter and requested the O/o DC FSEZ to scrutinize and reconcile the actual amount due, which is much less than the amount demanded.
(ii) The present management has now succeeded in roping in a competent & capable company to be associated with the revival of the unit in November, 2015. The representatives of the company had also called on the DC FSEZ on 1st December, 2015 and communicated their interest and stakes in the revival of the unit. In particular, they requested the DC FSEZ to quickly finalize the lease rental due so that the payment can be made immediately and for revival and renewal of the LoP.

The unit has requested the following:-

(a) That the actual rental dues payable be reconciled immediately so that same can be cleared. (b) Extension of the validity of the letter of permission for which an application has been filed with the DC FSEZ. And pending this, the representatives of the unit may be allowed to visit the plant for preliminary work and if necessary, under the presence of the officials at the Zone. (c) Renewal of lease of the lands expired in March, 2014 (However demand for rent raised till December, 2015)

The appellant has filed the instant appeal against the above rejection (Annexure–3).

The appeal is placed before the BoA for consideration.

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