Agenda for 74th Meeting of the BOA for SEZ to be held on 6th January, 2017

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Agenda for the 74th meeting of the Board of Approval to be held on
6th January, 2017, at 11.00 A.M. in the Room No. 47, Udyog Bhawan, New Delhi

Item No. 74.1: Requests for extension of validity of formal approvals (11 proposals)

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. Tata Steel 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, 2016

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

Sector

: Multi-product

Location:
Gopalpur, District Ganjam, Odisha

Extension: Formal approval to the developer was granted on 18th June, 2007 over an area of 1173 Ha and the notification has been issued on 08.04.2016 for 500 Ha. The developer has been granted seven extensions, validity period of which was upto 17th December, 2016.

Basic facts: Formal approval to the developer was granted on 18th June, 2007 over an area of 1173 Ha and now the notification has been issued on 08.04.2016 for 500 Ha. The delay in issue of notification was due to delay in State Government’s recommendation.

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

The developer has made following investments/plans

(i) More than 70% of boundary wall for SEZ notified area has been completed.
(ii) Approach roads developed (iii) Construction power & water available (iv) BLUT in Form D submitted for approval (v) UAC approved the 1st investor proposed to set up unit in SEZ. (vi) EC applied. FoR availed, EIA completed from MoEF, EC expected by February, 2017.

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The developer has stated that further extension may be granted for establishment of new units.

DC FSEZ has recommended the proposal for extension.

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

(ii) 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, Balola and Bandhwari, Tehsil Sohna, Gurgaon, Haryana, beyond 25th January, 2017

G.P. Realtors Private Limited

Sector

: Electronic Hardware & IT/ITES

Location

:
Village Behrampur, Balola and Bandhwari, Tehsil Sohna, Gurgaon, Haryana

Extension: Formal approval to the developer was granted on 26th July, 2007. The developer has been granted seven extensions, validity period of which is upto 25th January, 2017.

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

The developer has made following investments/plans.

(a) Details of Business plan

S. No. Type of cost Proposed Investment (Rs. In crores) 1. Land cost 300 2. Construction cost 2850 3. Plant & Machinery

Other overheads 850

Total 4000

(b) Investment made so far & incremental investment since last extension:-

S. No. Type of cost Total Investment made so far (Rs. In crores) Incremental investment since last extension (Rs. In crores) 1. Land cost 187

Material Procurement
40.83 40.81 3. Plant & 44.64 17.30

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Machinery 4. Other Overheads 12.78 11.36

Total 285.25 69.47

 Details of other overheads:- S. No. Type of cost Total investment made so far (Rs. in crore) Incremental investment since last extension (Rs. in crore) 1. Bank charges 10.61 10.61 2. Employee Salary & Alowances 0.66 0.66 3. Security charges 0.04 0.04 4. IT expenses 0.03 0.03 5. Miscellaneous 0.02 0.02

Total 11.36 11.36

(d) Details of physical progress till date:-

S. No. Authorised activity % of completion as on date % completion during last one year Deadline for completion of balance work 1. Pre-Cast Factory Set Up 100% 100%

Excavation 100% 100%

Isolated footings 84% 84% May, 2017 4. Precast production work 17% 17% May, 2017

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

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

(iii) Request of M/s. Mittal Infratech Pvt. Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Village Sewah, GT Road, District Panipat, Haryana, beyond 23rd February, 2016

Mittal Infratech Pvt. Ltd.

Sector

: IT/ITES

Location

:
Village Sewah, GT Road, District Panipat, Haryana

Extension : Formal approval to the developer was granted on 15th October, 2007. The developer has been granted six extensions, validity period of which was upto 23rd February, 2016.

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Basic facts: Formal approval to the developer was granted on 15th October, 2007. The SEZ stands notified as on date.

Details of Business Plan: The developer has stated that they will first construct the processing zone of 10,00,000 sqft. in first year and it will be operational in 2nd year. They will finish total processing zone of 13.00 acres.

Investment made till date:

(a) Land
: Rs. 493 lakhs (b) Infrastructure : Rs. 1400 lakhs (c) Other
: Rs. 15 Lakhs Total
: Rs. 1908 lakhs

Incremental investment since last extension – Nil

Details of physical progress till date in quantifiable terms:

 Completed the work of boundary wall  Highway entry permission received on 08.04.2009  IEC code received on 28.08.2009  Letter from Haryana Vidyut Prasaran Nigam Ltd. for 132 KV Sub-station  Feedback ventures has been appointed as consultant to execute the project  Construction machinery has already ordered  Appointed Architech on 15.05.2012  Constructed temporary cottage for labours  Build water reservoir for waste storage  Constructed site office of 2000 sqft. approx  Developed internal approach road

Physical progress since last extension: - Nil

DC NSEZ has not recommended the proposal because of lack of progress.

The request is placed before BoA for consideration.

(iv) Request of M/s. Radiant Corporation Pvt. Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware & Software and related activities at Plot No. 20, Muppireddypally village, Toopran Mandal, Medak District, Telangana, beyond 4th January, 2017

M/s. Radiant Corporation Pvt. Ltd.

Sector

: Electronic Hardware & Software and related activities

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Location

:
Plot No. 20, Muppireddypally village, Toopran Mandal, medak District, Telangana

Extension: Formal approval to the developer was granted on 5th January, 2012. The developer has been granted two extensions, validity period of which is upto 4th January, 2017.

Basic facts: Formal approval to the developer was granted on 5th January, 2012. The SEZ stands notified as on date.

Sum of total expenditure upto second extension (30.11.2015) Sub of (c) incremental investment since last extension (from 30.11.15 to 30.11.16) Sub of (b) investment made till date – separately on land and other infrastructure Land 37,893,000

37,893,000 Other Infrastructure 45,387,927 55,329,415 100,717,342 Others 942,826 882,892 1,825,718 Grand total 84,223,753 56,212,307 140,436,060

DC VSEZ has recommended the proposal till 15.03.2017.

The request is placed before BoA for consideration.

(v) Request of M/s. Tata Consultancy Services Limited for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Indore, Madhya Pradesh, beyond 28th February, 2017

Tata Consultancy Services Limited

Sector

: IT/ITES

Location

:
Indore, Madhya Pradesh

Extension: Formal approval to the developer was granted on 28th February, 2012. The developer has been granted two extensions, validity period of which is upto 28th February, 2017.

Basic facts: Formal approval to the developer was granted on 28th February, 2012. The SEZ stands notified as on date.

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Physical Progress:- Sl. No. Authorized activity % Completion as on 25.11.2016 %Completion during this year Deadline for completion of balance work 1 Boundary Wall 100% 22%

2 Software development blocks/BPO blocks/Arrival block/food court/ Amenity block 60.00% 51.39% March 2018 3 Parking space/ Health & Fitness space/Rest rooms 50.00% 50.00% March 2018 4 Generator room/electric substation/ FO generators (to augment MSEB power)/ chiller plant/UPS room/Distribution substation/HSD yard 70.00% 69.00% December 2017 5 Internal roads with street lighting and signage’s 20.00% 10.00% March 2018 6 All civil and interior work/electrical work/BMS/Air conditioning /fire protection system/rain water storage tank/gas bank/ biogas plant 40.00% 40.00% March 2018 7 Development of landscaping/ garden space. 10.00% 10.00% December 2017 8 Sewage treatment plant/ water treatment plants. 50.00% 50.00% March 2017

Financial investments:-

i. Proposed Investments. Sl. No.
Type of Cost Rs. in Crores 1 Land Cost 20.00 2 Development of Land 20.00 3 Boundary walls, roads, drainage, water supply, electricity etc. 80.00 4 Built up premises 180.00 5 Other investments 110.00

Total 410.00

ii. Investment made so far and during last 1 year:-

Sl. No.
Type of Cost Total investment made so far (Rs. in Cr.) Total investment made during this year (Rs. In Cr.) 1 Land Cost 20.65

2 Built up premises 204.11 145.65

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3 Other investments 3.22 0.94

Total 227.98 146.59

iii. Contracts awarded till date to contractors and consultants:-

Sl. No. Nature of Work Tentative PO amount (Cr.) 1 Consultancy Services 42.45 2 Civil works 254.38 3 External Finish’s 33.72 4 Internal Finish’s 47.52 5 Electrical Work 60.41 6 Mechanical Work 43.93 7 IBMS Work 15.79

Total 498.20

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

The request is placed before BoA for consideration.

(vi) Request of M/s. Frontier Lifeline Pvt. Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Edur Elavur Village, Gummidipoondi Taluk, Thiruvallur District, Tamil Nadu, beyond 27th November, 2016.

Frontier Lifeline Pvt. Ltd.

Location:

Edur Elavur Village, Gumidipoondi Taluk, Thiruvallur District, Tamil Nadu

Extension: Formal approval to the developer was granted on
28th November, 2008. The developer has been granted five extensions, validity period of which was upto 27th November, 2016.

Basic facts:

Formal approval to the developer was granted on
28th November, 2008. The SEZ stands notified as on date.

The developer has completed following activities.

The developer has stated that they have already invested Rs. 172.56 crore (as on 31.03.2016). Though, they have not made any significant physical progress, requested for extension for creation of following infrastructure and facilities for their SEZ:-

(i) Science/Research Block (ii) Convention Centre (iii)Bio-Hospital (iv) Mechanical heart project (v) Bio-Enterprise Zone

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

The request is placed before BoA for consideration.

(vii) Request of M/s. Rudradev Township (P) Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Cholankurini village, Madurai, Tamil Nadu, beyond 25th July, 2014

M/s. Rudradev Township (P) Ltd.

Location:

Cholankurini village, Madurai, Tamil Nadu

Extension: Formal approval to the developer was granted on
26th July, 2007.The developer has been granted four extensions, validity period of which was upto 25th July, 2014.

Basic facts:

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

(i) Details of business plan Proposed investment:-

S. No. Type of cost Proposed Investment (in Rs.) 1. Land cost 10,00,00,000 2. Construction cost 325,00,00,000 3. Plant & Machinery 295,00,00,000 4. Other overheads 20,00,00,000

Total 650,00,00,000

(ii) Investment made so far & incremental investment since last extension

S. No. Type of Cost Total investment made so far (in Rs.) Incremental investment since last extension (in Rs.) 1. Land cost 12,25,00,000 22,98,000 2. Material procurement 56,86,24,000 1,15,60,000 3. Service cost 9,83,70,000 31,38,000 4. Other overheads 75,60,000

Total 79,70,54,000 1,69,96,000

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(iii) Details of physical progress till date:

S. No. Authorised Activity % completion as on date % completion during last one year Dead line for completion of balance work 1. Roads 40% 8% 31.3.2017 2. Built up processing area 35% 5% 31.12.2017 3. Electrical works 5%

31.3.2018 4. Telecommunications --

31.3.2018 5. Airconditioning & others

-- 31.3.2018

DC MEPZ has recommended the proposal for extension up to 31.07.2018.

The request is placed before BoA for consideration.

(viii) Request of M/s. Mahindra World City (Jaipur) Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES including Software & Hardware Manufacturing at Village Kalwara, Tehsil Sanganer, District Jaipur, Rajasthan, beyond 3rd January, 2017.

M/s. Mahindra World City (Jaipur) Ltd.

Location:

Village Kalwara, Tehsil Sanganer, District Jaipur, Rajasthan

Extension: Formal approval to the developer was granted on
4th January, 2012. The developer has been granted two extensions, validity period of which was upto 3rd January, 2017.

Basic facts:

Formal approval to the developer was granted on
4th January, 2012. The SEZ stands notified as on date.

(a) Details of business plan

S. No. Type of cost Proposed Investment (in Rs.) 1. Land cost 1249 2. Construction cost & Plant & Machinery 1413 3. Other overheads 338

Total 3000

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(b) Investment made so far & incremental investment since last extension:

S. No. Type of cost Total Investment made so far (Rs. in lakhs) Incremental investment since last extension (Rs. in lakhs) 1. Land cost 1249

Material procurement and service cost 124 14 3. Other overheads (Interest) 696 38

Total 2069 52

(c) Details of physical progress till date:-

S. No. Authorised Activity % completion as on date % completion during last one year Dead line for completion of balance work 1. Approval for merger of sector specific SEZs into multi product SEZ* Applied for merging of various specific SEZs into one multiproduct SEZ State Govt. has forwarded the recommendation March, 2017 2. Construction of boundary wall 90% completed 50% of planning work completed March, 2017 3. Construction of road and other infrastructure
100% planning part and 30% road work completed 30% planning work completed September, 2017 4. Sewerage and water supply 100% planning part completed 50% planning work completed December, 2017

• though this is not an authorized activity

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

The request is placed before BoA for consideration.

(ix) Request of M/s. Mahindra World City (Jaipur) Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Gems & Jewellery at Village Bhamboriya, Tehsil Sanganer, District Jaipur, Rajasthan, beyond 1st February, 2017.

M/s. Mahindra World City (Jaipur) Ltd.

Location:

Village Bhamboriya, Tehsil Sanganer, District Jaipur, Rajasthan

Extension: Formal approval to the developer was granted on
2nd February, 2012. The developer has been granted two extensions, validity period of which was upto 3rd January, 2017.

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Basic facts:

Formal approval to the developer was granted on
2nd February, 2012. The SEZ stands notified as on date.

(a) Details of business plan

S. No. Type of cost Proposed Investment (in Rs.) 1. Land cost 240 2. Construction cost & Plant & Machinery 605 3. Other overheads (professional/marketing/manpower/admin etc) 155

Total 1000

(b) Investment made so far & incremental investment since last extension:

S. No. Type of cost Total Investment made so far (Rs. in lakhs) Incremental investment since last extension (Rs. in lakhs) 1. Land cost 240

Material procurement and service cost 52 16 3. Other overheads (Interest) 201 01

Total 493 17

(c) Details of physical progress till date:-

S. No. Authorised Activity % completion as on date % completion during last one year Dead line for completion of balance work 1. Approval for merger of sector specific SEZs into multi product SEZ* Applied for merging of various specific SEZs into one multiproduct SEZ State Govt. has forwarded the recommendation March, 2017 2. Construction of boundary wall 30%
50% of planning work completed March, 2017 3. Construction of road and other infrastructure
100% planning completed 40% planning work completed September, 2017 4. Sewerage and water supply 100% planning part completed 50% planning work completed November, 2017

• Though this is not an authorized activity

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

The request is placed before BoA for consideration.

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(x) 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
31st December, 2016

M/s. Newfound Properties and Leasing Private Limited

Sector

: IT/ITES

Location:

Juinagar, District Thane, Maharashtra

Extension: Formal approval to the developer was granted on
21st August, 2006.The developer has been granted five extensions, validity period of which was upto 31st December, 2016.

Basic facts:

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

Investment as of September 2016 Rs. 150.55 crores Investment as on last extension January 2016 Rs. 94.02 crores Incremental investment since last extension Jan 2016 to Sept 2016 Rs. 56.53 crores

Physical progress since last extension:-

Construction work:

(i) RCC work completed up to sixth slabs out of 12 slabs (ii) Masonry work and external development works completed at 40% (iii) Total work construction target is March, 2018.

Road and infrastructure work:

(i) Concrete road along with underground services (storm water drain/cable trenches/networking trenches) are completed at 950 meter length i.e. from main road to the SEZ (ii) Development of Central garden area @ 2 acres is in progress.

Incubation centre:

(i) Incubation centre is completed with plug and play facility & ready to start the operations. (ii) The developer has a committed client namely M/s. Nuova Sera Technologies Pvt. Ltd.

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DC SEEPZ has recommended the proposal for extension upto 30.06.2017.

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

(xi) Request of M/s. Nagaland Industrial Development Corporation Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Agro and Food Processing at Dimapur, Nagaland, beyond
11th October, 2016

M/s. Nagaland Industrial Development Corporation Ltd.

Sector

: Agro and Food Processing

Location:

Dimapur, Nagaland

Extension: Formal approval to the developer was granted on
12th October, 2007. The developer has been granted six extensions, validity period of which was upto 11th October, 2016.

Basic facts:

Formal approval to the developer was granted on
12th October, 2007. The SEZ stands notified as on date.

(i) Site development for industrial plots

100% (ii) Administrative Block and Guest house

100% (iii) Electrification

90% (iv) Internal roads and water pipes

100% (v) Residential block and factory shed (3nos)
100%
(vi) Standard design factory (2 no.)

100% (vii) Water treatment plant, C.E.T.P and cold storage – under progress

The SEZ is the only sector specific SEZ in the North-Eastern Region prompted by the Government of Nagaland.

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

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

Item No. 74.2 : Requests for extension of LoP beyond 3rd Year onwards (3 proposals)

 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

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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. G. Metals Company, a unit in NSEZ at Plot No. 98, NSEZ for extension of validity period of its LoP beyond 27th October, 2016

 LoP issued: 28th October, 2010 for manufacturing of precious metals including non ferrous alloys, chains, jewellery, finding components and electro plating process to carry out authorized operations in house for manufacturing of jewellery.

 Extensions: 4 (four) up to 27th October, 2016

 Request: For further extension up to 27/10/2017.

The unit has requested for further extension so as to implement the project. The unit has made the following investment/plans:-

(a) Details of Business plan

S. No. Type of cost Proposed Investment (Rs. In crores) 1. Land cost

Construction cost 1.00 3. Plant & Machinery 7.70 4. Other overheads 4.18

Total 12.88

(b) Investment made so far & incremental investment since last extension:-

S. No. Type of cost Total Investment made so far (Rs. In crores) Incremental investment since last extension (Rs. In crores) 1. Land cost 3.41 1.16 2. Material Procurement
2.32 1.52 3. Service Cost 0.19 0.12 4. Other Overheads 0.37 0.28

Total 6.29 3.08

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(c) Details of physical progress till date:-

S. No.
% of completion as on date % completion during last one year Deadline for completion of balance work 1. Building 100% 10%

Plant & Machinery 90% 67% March 2017

DC NSEZ has recommended the proposal for extension upto 21.11.2017.

The request is placed before BoA for its consideration.

(ii)
Request of M/s. Pinkcity Jewel House Pvt. Ltd., a unit in Sitapura, Jaipur SEZ for extension of validity period of its LoP beyond 2nd September, 2016

 LoP issued: 3rd September, 2013 for setting up a manufacturing unit.

 Extensions: 2 (two) up to 2nd September, 2016

 Request: For further extension up to 02.09.2017.

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

The unit has made the following investment/plans:-

As per the Chartered Engineer Certificate, the unit has completed only 60% of construction activity, however, as per Rule 19(4) of SEZ Rules, 2006, 2/3rd of construction activity should be completed which is not covered. Further the unit has stated that though LoA has already lapsed on 02.09.2016, they have stated that they were late in starting the construction work because of personal and business reasons.

DC NSEZ has recommended the proposal for extension of LoP.

The request is placed before BoA for its consideration.

(iii)
Request of M/s. Amneal Oncology Pvt. Ltd., a unit in TSIIC Limited SEZ at Polepally village, Jadcherla Mandal, Mahaboob Nagar District, Telangana for extension of validity period of its LoP beyond 13th December, 2016

 LoP issued: 14th December, 2010 for Pharmaceutical Formulation

 Extensions: 5 (five) up to 13th December, 2016

 Request: For further extension up to 12th December, 2017.

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

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The unit has made the following investment/plans:-

(i) Investment made is Rs. 139.65 crores as on 30.09.2016 (ii) The basic infrastructure like Power Connection are installed and in operation at site (iii) The basis utility infrastructure like Bioler, HVAC, DG set, Air Handling units etc are installed in and in operation at site (iv) Employment generated 220 persons (v) Incremental investment since last extension is Rs. 68.28 crores. (vi) The unit has commencement of production and they are awaiting facility approval as well as product approval from various overseas regulatory authorities like USFDA.

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

The request is placed before BoA for its consideration.

Item No. 74.3 : Requests for co-developer (1 proposal)

(i) Request of M/s. India Power Corporation (Bihar) Private Limited for co- developer in the multi product SEZ at Nanguneri, Tirunelveli District, Tamil Nadu, being developed by M/s. AMRL Hitech City Ltd.

The above mentioned multi product SEZ stands notified on 18.11.2008 over an area 1020 hectare.

M/s. India Power Corporation (Bihar) Private Limited has submitted a proposal for becoming a co-developer in the aforesaid SEZ to distribute quality and uninterrupted power, development of power distribution network and other ancillary support relating to power distribution within the SEZ.

Memorandum of Understanding between developer and Co-developer is entered on 19th December, 2016.

DC MEPZ has recommended the proposal.

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

Item No. 74.4 : Proposals for setting up of SEZs (6 proposals)

(i) Request of M/s. Worldwide Oilfield Machine Pvt. Ltd. for setting up of a sector specific SEZ for Engineering at Village Kasurdi, Gunjal Maval, Tal. Bhor, Pune, Maharashtra, over an area of 58.23 hectares.

S. No Name of the Developer Location
Sector Area (in ha) Land Possessi on
State Govt. Recommen- dation Status of application (i) M/s. Worldwide Oilfield Machine Pvt. Ltd. Sy. Village Kasurdi, Gunjal Maval, Tal. Bhor, Pune, Maharashtra
Engineer ing 58.23 No* State Govt. has forwarded in-principle the New

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application for setting up of sector specific SEZ.

• The developer has stated that land is proposed to be purchased from agriculturists by negotiation.

DC SEEPZ SEZ has recommended the proposal for consideration for in-principle approval.

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

(ii) Request of M/s. Embassy Property Developments Private Limited for setting up of sector specific SEZ for IT/ITES at Outer Ring Road, Rachenahalli Village, Bangalore, Karnataka, over an area of 2.5906 hectares.

S. No Name of the Developer Location
Sector Area (in ha) Land Possession
State Govt. Recommen -dation Status of application (i) M/s. Embassy Property Developments Private Limited Outer Ring Road, Rachenahalli Village, Bangalore, Karnataka IT/ITES 2.5906 Yes Yes Deferred in the 71st BoA due to lack of State Govt. NoC (Now State Govt. NoC is received (14.12.2016)

DC CSEZ had recommended the proposal.

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

(iii) Request of M/s. L&T Construction Equipment Limited(Reality Division) for setting up of a sector specific SEZ for IT/ITES at L&T Campus, Bellary Road, Byatarayanapura, Next to GKVK, Bangalore, Karnataka over an area of 2.34 Hectares.

S. No Name of the Developer Location
Sector Area (in ha) Land Possessi on
State Govt. Recommen- dation Status of application (i) M/s. L&T Construction Equipment Limited L&T Campus, Bellary Road, Byatarayanapura, Next to GKVK, Bangalore, Karnataka
Engineer ing 2.34 Yes No

New

DC CSEZ has recommended the proposal.

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

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(iv) Request of M/s. Horizonview Properties Pvt. Ltd. and M/s. RPIL Singalling Systems Ltd. for setting up of sector specific SEZ for IT/ITES at Old No. 111/New No. 162, Mount Poonamalle High Road, Porur, Chennai, Tamil Nadu, over an area of 2.49 hectares.

S. No Name of the Developer Location
Sector Area (in ha) Land Possessio n
State Govt. Recommen- dation Status of application (i) M/s. Horizonview Properties Pvt. Ltd. and
M/s. RPIL Singalling Systems Ltd. Old No. 111/New No. 162, Mount Poonamalle High Road, Porur, Chennai, Tamil Nadu IT/ITES 2.49 Ha (1.94 Ha with HPPL) and (0.55 Ha with RPILSSL Yes No New

DC MEPZ recommendation is awaited.

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

(v) Request of M/s. Phoenix Embassy Tech Zone Private Limited for setting up of a sector specific SEZ for IT/ITES at Sy. No. 115/35, Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District, Telangana, over an area of
2.02 hectares.

S. No Name of the Developer Location
Sector Area (in ha) Land Possessi on
State Govt. Recommen- dation Status of application (i) M/s. Phoenix Embassy Tech Zone Private Limited Sy. No. 115/35, Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District, Telangana IT/ITES 2.02 Yes* No

Withdrawn in the 73rd BoA as State Govt. NOC not available

• A Joint Development Agreement has been executed between Phoenix Embassy Tech Zone Private Limited (formerly known as Phoenix Embassy Business Park Private Limited) and the landowner, Neuland Laboratories Limited to develop the SEZ.

DC VSEZ has recommended the proposal, subject to recommendation of the Government of Telangana for consideration of BoA.

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

(vi) Request of M/s. Phoenix Embassy Tech Zone Private Limited for setting up of a sector specific SEZ for IT/ITES at Sy. No. 203 Part, Manikonda Jagir Village, Serilingampally Mandal, Ranga Reddy District, Telangana, over an area of
2.02 hectares.

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S. No Name of the Developer Location
Sector Area (in ha) Land Possessi on
State Govt. Recommen- dation Status of application (i) M/s. Phoenix Embassy Tech Zone Private Limited Sy. No. 203 Part, Manikonda Jagir Village, Serilingampally Mandal, Ranga Reddy District, Telangana IT/ITES 2.02 Yes* No

Withdrawn in the 73rd BoA as State Govt. NOC not available

• A Joint Development Agreement has been executed between Phoenix Embassy Tech Zone Private Limited (formerly known as Phoenix Embassy Business Park Private Limited) and the landowner, Athena Global Technologies Limited (formerly known as VJIL Consulting Limited to develop the SEZ).

DC VSEZ had recommended the proposal, subject to recommendation of the Government of Telangana for consideration of BoA.

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

Item No. 74.5 : Change of Shareholding Pattern ( 3 proposals)

With a view to promote the ease of doing business in India and that restructuring of entity/ business is a fairly common occurrence, BOA in its 69th meeting held on 23.02.2016 decided that provisions of Rule 74A shall not apply to SEZ Units that do not exit or opt out of the SEZ Scheme by transferring its assets and liabilities to another person and the SEZ Unit continues to operate as a going concern in the situations mentioned above. The UACs concerned, may consider such requests under Rule 19(2) of the SEZ Rules, 2006.

In so far as Business Transfer Agreement is concerned, it was explained that certain acquisitions happen globally as a result of Business Transfer Agreement which result in transfer of the SEZ unit of the Indian company on a going concern basis to the acquirer. The BOA decided that such cases resulting in change of ownership would be decided on merits by the Board of Approvals on a case to case basis.

(i) Request of M/s. UnitedHealth Group Information Systems Pvt. Limited under VSEZ for change of shareholding patterns of the following units.

(i) The unit -1 was granted LoP on 08.01.2010 in M/s. Sundew Properties Limited
(ii) The unit - 2 was granted LoP on 16.02.2012 in M/s. Phoenix Infocity Pvt. Limited (iii) The unit - 3 was granted LoP on 26.09.2014 in M/s. Sundew Properties Limited

The unit has submitted a proposal for change in its shareholding pattern as under:-

(a) Earlier shareholding pattern:

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Name of the shareholder No. of share hold Face value of shares held (Rs.) Unitedhealth International Inc. 63,195 631,950 Optum Global Solutions International BV 9,936,805 99,368,050 Total 10,000,000 100,000,000

(b) Revised shareholding pattern:

Name of shareholder No. of share hold Face value of shares held (Rs.) Optum Global Solutions (India) Private Limited (Out of 10,000,000 shares, 10 shares are held by United Health International Inc. as a nominee of Optum Global Solutions (India) Private Limited 10,000,000 100,000,000 Total 3434677 100%

The unit is not opting out from the SEZ and there is a 100% change in shareholding & as such the proposal is not covered under the powers delegated to the UAC as per the clarification issued by 69th BoA held on 23.02.2016.

DC VSEZ has recommended the proposal.

The request of the unit is submitted for consideration of BoA.

(ii) Request of M/s. UnitedHealth Group Information Services Pvt. Ltd., a unit in CSEZ for change shareholding pattern.

The above mentioned unit was granted LoP on 16.10.2014 for undertaking authorized operation namely manufacture and export of IT/ITES. The LOA is valid up to 31.05.2020.

The unit has submitted a proposal for change in shareholding pattern as per details given below:-

Existing Shareholding Pattern Proposed Shareholding Pattern

1. Optimum Global Solutions International BV (Non Resident Company) 99.37%

Optimum Global Solutions India Pvt. Ltd. (Resident Company 99.9999% 2. UnitedHealth International Inc. (Non Resident Company 0.63% 2. United Health International Inc. (Nominee holding share on behalf of Optum Global Solutions (India) Pvt. Ltd. 0.0001% Total 100%

100%

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The unit is not opting out from the SEZ and there is a 99.9999% change in shareholding & as such the proposal is not covered under the powers delegated to the UAC as per the clarification issued by 69th BoA held on 23.02.2016.

DC CSEZ has recommended the proposal.

The request of the unit is submitted for consideration of BoA.

(iii) Request of M/s. UnitedHealth Group Information Systems Pvt. Limited under NSEZ for change of shareholding patterns of the following units.

(i) The unit -1 was granted LoP on 02.05.2012 in M/s. Oxygen Business Park Pvt. Ltd. (ii) The unit - 2 was granted LoP on 21.09.2015 in M/s. Oxygen Business Park Pvt. Ltd.

The Board of Approval in its meeting held on 12th August, 2016 had approved the following shareholding pattern of the company:-

Name of the shareholder (Old) No. of share hold % Share Optum Global Solutions International BV 99,36,805 99.37% UnitedHealth International Inc. 63,195 0.63% Optum Global Solutions International BV 6,15,21,250 100%

Now, the unit has submitted intimation for further changes in shareholding pattern of the company w.e.f. 18.08.2016 as under:-

Name of shareholder (New) No. of share hold Face value of shares held (Rs.) Optum Global Solutions (India) Private Limited 1,00,00,000 100%

The unit is not opting out from the SEZ and there is a 100% change in shareholding & as such the proposal is not covered under the powers delegated to the UAC as per the clarification issued by 69th BoA held on 23.02.2016.

DC NSEZ has recommended the proposal.

The request of the unit is submitted for consideration of BoA.

Item No. 74.6 : Miscellaneous Cases (7 cases)

(i) Request of M/s. Zydus Infrastructure Pvt. Ltd. for sectoral broad banding in sector specific SEZ for pharmaceuticals at Matoda, Sanand, Ahmedabad to bio- technology

The above mentioned SEZ was granted formal approval on 21st June, 2006. The SEZ stands notified over an area of 50.2885 hectares.

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The sector specific for pharmaceuticals developed, operated, and maintained by M/s. Zydus Infrastructure Pvt. Ltd. is fully operational from since May, 2009 will all common infrastructure facilities including CEPT, etc, and most of the 48 hectares notified is utilized by 10 approved units.

Now the developer has submitted the proposal for broad-banding to bio-technology. As per clarification on SEZ Amendment issued by DoC on 13.09.2013, broad- banding provisions for categories of sectors to encompass similar / related areas with each broad-banded sector is treated as a single sector for the purpose of minimum land criteria. Biotechnology, Pharmaceuticals and Chemicals are treated as single sector.

DC KASEZ has recommended the proposal for broad banding.

The request is placed before BoA for its consideration.

(ii) Request of M/s. Shri Lal Mahal Ltd., Kandla SEZ for processing activity of Rice for export in their existing LoA

The above mentioned unit was granted LoP on 28.07.2016 for processing agro products and manufacturing activity of pan masala and churna for pan falling under free category and not containing tobacco or nicotine. LoA is valid for period of one year i.e. up to 27.07.2017. However, the unit is an inhouse firm of Shri Lal Mahal Group of companies which is one of the largest exporter of basmati and non basmati rice from India.

The unit requested for addition of rice for processing activities like rice, parboiled and basmati rice in their existing LoA. The unit also requested to consider the proposal under the ITC HS code (10063010-10063020).

The unit has stated that they will 100% import rice and after processing i.e. cleaning, polishing, sorting and grading, the same will be 100% exported to overseas destination. They have further stated that the proposed import of rice variety is not produced in India and also there is no market in India as the said type of exotic brown rice is not eaten by Indians. They have further stated that imported rice will not be removed in DTA market and that they will not procure rice from DTA market as well.

The unit has given the projected foreign exchange balance sheet for next five years as under:-

FOB value of export

Rs. 1984.00 lakhs Foreign exchange outgo

Rs. 1654.00 lakhs N.F.E

Rs. 0330.00 lakhs

The said proposal was discussed in the 104th Unit Approval Committee meeting of Kandla SEZ held on 15.11.2016. The Approval Committee after due deliberation noted that Rice is a sensitive consumer item concerning the mass population of India and that its policy of import/export is of the nature of frequent changes. Therefore, after due deliberation the Committee decided to forward and recommend the proposal for consideration before BoA.

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DC, KASEZ has recommended the proposal

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

(iii) Request of M/s. Aequs SEZ Private Limited in sector specific SEZ for precision engineering at Belgaum, Karnataka at Belgaum, Karnataka for setting up of Training Centre in Non-processing Area

The above mentioned SEZ was granted formal approval on 7th January, 2008. The SEZ stands notified over an area of 106.33 hectares and the SEZ commenced operations w.e.f. 1st July, 2009.

The developer has requested for setting up of Training Centre in non-processing area under the SEZ Rule 11A for SEZ Rules 2006 as per the schedule of project implementation:-

(i) Requirement of area:

0.93 hectares (ii) Built up area:

12000 sq.ft. (iii) Percentage of total non-processing area:
1.50 hectares (iv) Percentage of total SEZ area:

1.41% (v) Time frame of completion of project:
9 months

Investment/Business Plans

(i) Proposed investment other than land cost:
INR 4.3 crores (ii) Turnover of existing business
:

INR 17.2 crores for FY 2015-16

The training is exclusively for the benefits of the unit holders. SEZ would outsource the training activities to another entity at a fee and such third party training entity would hire the trainee and train them suitably for jobs at units in the SEZ. Therefore, the State Government NoC is not required.

DC, CSEZ has recommended the proposal

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

(iv) Request of M/s. Milak Warehouse, Kandla SEZ for permission to warehouse of imported raw sugar for 100% export in their existing LoA

The above mentioned unit was granted LoP on 09.08.2001 and for broad banded activities from time to time including warehouse service activity. The LoA is valid up to 14.08.2021.

The NFE performance of the unit since last five years block and employment generation is as under:-

NFE achieved in the 5 year block ending 2015- 16 – Rs. 458.33 lakhs Employment during 2015-16

• 28 Nos. NFE achieved in the 5 year block ending 2010-11

• Rs. 372.28 lakhs Employment during 2010-11

• 122 Nos.

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The unit requested for permission of warehousing of imported raw sugar for 100% export in the existing LoA on behalf of the overseas clients to provide the facility of packing of bulk raw sugar supplied by them from outside India into the bags of 25/50 kgs. and the said goods after the packing will in turn be 100% exported at various overseas destinations as per the instruction of the said overseas client. They have further stated that they will be receiving the entire warehousing/custodian charges in foreign currency only. They have further categorically stated that in he said proposed warehousing activity the entire raw sugar shall be sourced by their overseas clients from outside India only and will be 100% exported outside India. They have further undertaken that there will be no DTA procurement or DTA sale of the said goods for the above proposed activity.

The unit has stated that raw sugar comes under the ITC (HS) code Number 17029090 & 17011490 under the current FTP, 2015-2020 is freely importable and exportable with condition that all sugar import contracts shall be compulsory registered with the APEDA. However, the import and export of sugar is being very sensitive consumer commodity.

DC KASEZ has forwarded the proposal for consideration of BoA.

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

(v) Request of M/s. A One Duty Free Private Limited for procurement of Cigarette from ITC Limited without paying duty against ARE-1 form and supplies to Duty Free Shops Bonded Warehouses & Foreign Vessels.

M/s. A One Duty Free Private Limited was granted LoA on 09.06.2014 for trading in Cigarettes, Confectionery, Spirits/Liquor with usual terms and conditions of LoA. As per one of the terms and conditions of LoA “the unit may import or procure from the Domestic Tariff Area all the items required for undertaking authorized operations under the approval, except those prohibited under the ITC (HS) Classification of Export and Import items.”

The BoA in its 45th meeting held on 25.03.2011 approved the case of M/s La Spirit Liquor Trading Co. for trading of “Cigarettes (covered under ITC-HS 2402) subject to the following conditions:

1. No DTA procurement of Cigarettes shall be made by the unit.
2. There will be no DTA sale of cigarettes.
3. The Cigarettes shall be supplied only to Bonded Warehouse, Foreign Vessels calling at Kandla Port and Mundra Port and the duty free shops in these ports.

In view of the above, the LoA granted to M/s. A One Duty Free Pvt. Limited was reviewed by DC VSEZ and the following conditions were added in the LoA vide letter dated 11.11.2014.

1. No DTA procurement of the cigarettes shall be made by the unit.
2. There will be no DTA sale of Cigarettes.
3. The Cigarettes shall be supplied only to Bonded warehouses, foreign Vessels. M/s. A One Duty Free Private Limited has represented against the above decision to impose conditions in their LoA.

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DC VSEZ Remarks:

1. M/s. A One Duty Free Private Limited, is not engaged in manufacture of Cigarettes, the unit has been granted LoA for undertaking Trading in Cigarettes, Confectionery, Spirits/Liquor.
2. As part of the activity the unit will procure the Cigarettes from DTA and supply the same to Duty free shops, Bonded warehouses & Foreign Vessels.
3. As per ITC (HS) Classification Chapter heading 2402 “Cigarettes” are placed under “Free” list for both export and import and they are not falling under restricted or prohibited category. As per the provisions of SEZ Rules 2006 also the unit is permitted to procure/import the required goods for undertaking the authorized operations and there is no restriction/prohibition for procurement of Cigarettes from DTA by a unit in SEZ as such.

Accordingly, the request of the unit for allowing them to procure Cigarettes from DTA for supplying the same to Duty free shops, Bonded warehouses & Foreign Vessels is placed before BoA for consideration.

(vi) Request of M/s. Maithan Alloys Limited (formerly known as M/s. Anjaney Alloys Ltd.), a Unit in APSEZ, Atchutapurma, Visakhapanam District, Andhra Pradesh for permission for import of Ferro Manganese Slag

M/s. Maithan Alloys Ltd. Alloys Ltd. was granted LoA on 21.10.2008 for manufacturing and export of Ferro Manganese, silico manganese etc. The unit commenced production on 02.01.2012.

The above unit has earlier requested permission for Import of 40000 MT of Ferro Manganese Slag and the same was considered by the BoA in its meeting held on 06.07.2012 for import of manganese slag.

The unit has again requested permission for import of 60000 MT of Ferro Manganese Slag and the same was placed before the BoA held on 18.09.2014 for consideration. The BoA in its 63rd meeting held on 19.09.2014 has directed the DC, VSEZ to resubmit the proposal along with the NoC in favour of the unit issued by the Ministry of Environment, Forests and Climate change along with the report on utilization of 40000 MT of Ferro Manganese slag permitted for import vide BoA in its meeting held on 06.07.2012.

The unit has now requested permission for import of 60000 MT of Ferro Manganese Slag duly enclosing the NOC of MOEF letter dated 25.07.2016 (Annexure-1). The MOEF in their letter stated that their Ministry has no objection for import of 60000 MT of Ferro Manganese Slag from Hong Kong, Singapore, Japan and Switzerland for recovery/recycling/reprocessing purpose by the unit with certain conditions stipulated. The import permission is valid till 30.04.2018 as per the consent approved by the APPCB or 18 months from the date of issue of their permission (25.07.2016), whichever is earlier.

The unit has submitted the utilization certificate for the Qty. 40,000 MT imported by them duly certified by Chartered Engineer.

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Since the unit has fulfilled the required conditions stipulated by BoA in its meeting held on 18.09.2014, the request of M/s. Maithan Alloys Ltd. for import of Ferro Manganese slag for a quantity of 60000 MTs is placed before the BoA for SEZ for consideration.

DC VSEZ has placed the proposal for consideration of BoA.

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

(vii) Proposal of M/s. Mahindra World City (Jaipur) Ltd. for merger of its five SEZs (IT/ITES SEZ, Engineering & Related Industries SEZ, Handicraft SEZ, Gem & Jewellery SEZ & IT/ITES including Software & Hardware manufacturing SEZ) located at Village Kalwara, Jhai Bhambhoriya, Bagru Khurd & Newta, Tehsil Sanganer, District Japur, Rajasthan into one multi product SEZ

M/s. Mahindra World City (Jaipur) Ltd. at Village Kalwara, Jhai Bhambhoriya, Bagru Khurd & Newta, Tehsil Sanganer, District Japur, Rajasthan for merger of its five SEZs

S. No. SEZ/Sector Existing Notified Area Applied for de-notification Applied for additional area Total 1. IT/ITES SEZ F.2/135/2005-EPZ dated 07.04.2006 150.2830

-- 150.2830 2. IT/ITES including Software and Hardware manufacturing F.1/33/2010-SEZ dated 04.01.2012 36.107

-- 36.107 3. Handicraft SEZ F.2/135/2005-EPZ dated 23.04.2008 165.2116

-- 165.2116 4. Engineering and related Industries F.2/135/2005-EPZ Dated 23.04.2008 233.368

-- 233.368 5. Gem & Jewellery SEZ F.1/34/2010- SEZ dated 02.02.2011 11.080 0.172 0.077 10.985

Total 596.0496 0.172 0.077 595.9546

Out of above five SEZs, three SEZs (i) IT/ITES SEZ, (ii) Handicraft SEZ & (iii) Engineering and related Industries SEZ are operational and remaining two SEZs i.e. (i) IT/ITES including Software and Hardware Manufacturing & (ii) Gem & Jewellery SEZ are at implementation stage. The proposal of the developer for addition/deletion of area in Gem & Jewellery SEZ are under consideration of Department.

In the instant case the developer has also proposed for addition of 12.432 hectares area and deletion of 3.803 hectares making total area of 604.5836 hectares after merger of above five SEZs.

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The Government of Rajasthan has recommended the merger of aforesaid five notified SEZs as well as addition of 12.432 hectares land stating that the developer has irrevocable right to develop the said area as SEZ and the said area is free from all encumbrances.

During the inspection it was observed that a rivulet was passing through the land with a culvert over it in the proposed additional area as well as already notified area. The representative of the developer informed that the said water rivulet exists within the notified area of SEZ and the same is used as water reservoir. The proposed land to be added was found to be vacant but in between existing Engineering SEZ & IT SEZ-II, one village road exists. It was informed by the representatives of the developer that the area of land have been leased out to M/s. Mahindra World City Jaipur but due to villager’s protest, they are pursuing the matter with the State Govt. for closure of the road. They informed and showed the bituminous road separately made for villagers who will use it after closure of existing road. It was further informed by them that in case they will not be able to close the aforesaid road then they will establish the contiguity by making dedicated security gates/underpass and also fence side of the road facing the processing area, as per Instruction No. 27 dated 18.08.2009 issued by DoC. The developer has undertaken that no tax benefit will be availed by them for measures to be taken to establish contiguity. It was further informed that major portion of the land proposed to be added falls between the two existing notified SEZs.

Further, Government of Rajasthan, Deputy Secretary (Industries) vide dated 19.12.2016 (Annexure-2) has issued NoC and stated that since the developer is setting SEZ and DTA, therefore such de-notified parcels would be utilized towards creation of infrastructure required for DTA. Deletion of this small area from notified area is required for giving the access to DTA area being setup by Mahindra World City (Jaipur) Ltd. It has been further mentioned in the NoC that land parcels after de-notification will be used by Mahindra World City (Jaipur) Ltd. for permitted use under the policy of State Government.

In the light of position stated above, the developer requested for the relaxation of Instruction No. 27 dated 18.08.2019 issued by DoC (Conditions of Contiguity) before BoA.

DC NSEZ has recommended the above proposal for merger of five notified SEZs and addition of 12.432 hectare area as well as de-notification of 3.803 hectares in respect of M/s. Mahindra World City (Jaipur) Ltd.

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

Item No. 74.7 : Appeals before BoA (One pproposal)

(i) Appeal of M/s. Sunny View Estates Private Ltd. as Co-Developer of IT/ITES SEZ viz.Quarkcity India Pvt. Ltd. at Mohali, Punjab against the decision of UAC.

The unit was issued letter of approval by NSEZ vide letter No.08/07/91/NEPZ dated 31.07.1991 permitting them to set up a unit for manufacturing of consumer electronic hardware items, manufacturing of loader with lens for VCD players and trading activities
and /or as amended from time to time, subject to the condition imposed therein. The unit commenced its export productions w.e.f. 10.08.1991 and has been doing the same for the last 25 years.

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The unit was issued letter of approval vide letter No. F.2/7/2005-EPZ dated 22.05.2008 for the Authorized operations of power (including) power backup facility. M/s. Sunny view Estates Private Ltd (hereinafter referred as an appellant) as a co-developer of the IT/ITES SEZ Viz. M/s. Quarkcity India Private Limited, situated at Mohali, Punjab have submitted their proposal to UAC for approval of list of material including DG set for power back up purpose to carry on authorized operations as “ Electrical, Gas and Petroleum Natural Gas Distribution Network including necessary substations of appropriate capacity, pipeline network under the provision of Rule 5A of SEZ Rules, 2006- Infrastructure requirements Information Technology which provides

a) Twenty four hours uninterrupted power supply at stable frequency in the zone; b) Reliable connectivity for uninterrupted and secure data transmission; c) Provision for central air-conditioning system; and d) A ready to use, furnished plug and pay facility for end users.

In order to ensure for fulfillment of these facilities, appellant have decided to procure a DG set for their SEZ so as to provide Twenty-four hours uninterrupted power supply at stable frequency in the zone.

Accordingly, appellant have approached and applied for approvals for procurement of DG set for power back up purpose for their unit to the Development Commissioner, NSEZ.

DC NSEZ/UAC in the light of new power guidelines issued by DoC vide letter dated 16.02.2016 (para 4 of said guidelines) has stated that with respect to the IT/ITES SEZs, which requires continuous quality power, wherever generation of power has been approved by the BoA, as authorized operation, to the developer/co-developer within the processing area, and i.r.o. of which there is a statutory requirement on developer/co-developer to supply 24 hour uninterrupted quality power supply at stable frequently in the zone, in terms of rule 5A of SEZ Rules 2006, in such cases generation of power will be carried out as a unit within the processing area, and such a power plant including non-conventional energy power plant, will be entitled to all the fiscal benefits covered under section 26 of the SEZ Act including the benefit for initial setting up, maintenance and the duty free import of raw materials and consumables for the generation of the power. Such duty free imports of capital goods, raw material and consumables etc. would be counted towards the NFE obligations of the unit.

After due deliberation, UAC directed to apply for setting up of a separate unit for power generation as per the power guidelines dated 16.02.2016.

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

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