TaxTMI 
TaxTMI 
Minutes of the 48th meeting of the SEZ Board of Approval held on 19th September 2011 to consider proposals for setting up Special Economic Zones
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....ring the financial year 2010-11, total exports to the tune of Rs. 3,15,867.85 Crore has been made from the SEZs, registering a growth of about 43.11% over the exports for the year 2009-10. Exports during the first quarter of the current financial year i.e. up to 30.06.2011 have been to the tune of Rs. 72,255.49 Crore. Item No. 48.1: Proposals for setting up of SEZs. (i) Request for setting up of a sector specific Special Economic Zone for Petroleum and Oil & Gas Industry at Rajayyapeta village, Visakhapatnam District, Andhra Pradesh by M/s. Planet SEZ Private Limited, over an area of 108 hectare The Board noted that the Government of Andhra Pradesh had recommended the proposal vide letter dated 10.08.2011. Since, the land was not in possession of the Developer, the Board decided to grant in-principle approval to the proposal of M/s Planet SEZ Private Limited, for setting up of a sector specific Special Economic Zone for Petroleum and Oil & Gas Industry at Rajayyapeta village, Visakhapatnam District, Andhra Pradesh,over an area of 108 hectares. (ii) Proposal of M/s. Indian Strategic Petroleum Reserves Limited, for setting up of FTWZat Padur, Karnataka, over an area of 41....
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....entered into with the developer. (ii) Request of M/s. Stylus Commercial Services Private Limited (SCSPL) for codeveloper in the sector specific SEZ for Electronic Hardware and Software including IT/ITES at Rachenhalli and Nagavara villages, Hobli, Outer Ring Road, District Bangalore, Karnataka, being developed by M/s. Manyata Promoters Private Limited After deliberations, the Board approved the request of M/s. Stylus Commercial Services Private Limited for becoming a co-developer in the above mentioned SEZ, for undertaking development of about 21,696 sq. ft. of built up space, in accordance with the codeveloper agreement entered into with the developer. (iii) Request of M/s. Pandit Deendayal Petroleum University for co-developer in Multi Product SEZ at Vagra, District Bharuch, Gujarat, being developed by M/s. Dahej SEZ Limited After deliberations, the Board deferred the proposal, as a reply is awaited to certain queries addressed to Chief Secretary, Gujarat, in response to a reference made by him. (iv) Request of M/s. Artha Builders LLP for co-developer in the sector specific SEZ for Electronic Hardware and Software including IT/ITES at Greater Noida, Uttar Pradesh, ....
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....number of issues like request for serving non- SEZ entities, which require further examination on file in consultation with departments concerned, to find suitable resolution. Accordingly, the proposal was deferred. (viii) Request of M/s. Basix Academy for Building Lifelong Employability (B-ABLE) for co-developer in the sector specific SEZ for Food Processing at Tuticorin District, Tamil Nadu, being developed by M/s. CCCL Pearl City Food Port SEZ Limited The proposal was deliberated by the BoA. It was noted that while the importance of value added services offered by a skill-development centre to the SEZ exporting units could not be denied, the proposal contained a number of issues which required further examination on file in consultation with departments concerned. Accordingly, the proposal was deferred. Item No. 48.3: Requests for Authorized Operations BoA considered the proposals for authorized operations and it is clarified that all approvals for authorized operations are subject to the development guidelines approved by EGoM in its meeting dated 24th October 2008, which was noted by the members of the BoA, and State Government Representatives in its meeting held o....
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....e for the exclusive use of SEZ employees: - S. No. Name of Authorized Activity No. of Units 1. Residential A. Workers Hostel - 160 units 18000 B. Studio Apartment - 1 Building- 320 units 8600 C. 1 BHK Apartment - 1 Building - 160 units 7000 D. 2 BHK Apartment - 1 Building - 320 units 27000 E. 3 BHK Apartment - 1 Building - 320 units 51500 Total 112100 2. Commercial A. Workers Canteen and Club 2000 B. Retail Market 1000 Total 3000 (iv) Request of M/s. Indian Strategic Petroleum Reserves Ltd. (ISPRL), a co-developer in the sector specific SEZ for Petrochemicals and Petroleum sector at Baikampady, near Mangalore, Dakshina Kannada District, Karnataka, being developed by M/s. Mangalore SEZ Limited, for authorized operations The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the processing area of the SEZ, as given in the table: S.No. Name of the authorized activity No. of Units Area per Unit (in sqm) as per FSI/FAR Norms as ap....
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.... proposal and after deliberations, the Board decided to approve the request for setting up a Bank Branch in the non-processing area of the SEZ. The Bank Branch shall be within the area of 6826.55 sqm already approved, by the BoA in its meeting held on 15th January, 2009, for retail space and utilities like telephone kiosk, food kiosks etc., in the non-processing area. (viii) Request of M/s. Canton Buildwell Private Limited for authorized operations in the sector specific SEZ for IT/ITES at Gurgaon, Haryana After deliberations, it was decided that Director (SEZ), Department of Commerce, would visit the SEZ site and submit a factual report before the BoA for facilitating decision in the matter. (ix) Request of M/s. G.P. Realtors Private Limited for authorized operations in sector specific SEZ for IT/ITES at village Behrampur, District Gurgaon, Haryana After deliberations, it was decided that Director (SEZ), Department of Commerce, would visit the SEZ site and submit a factual report before the BoA for facilitating decision in the matter. Item No. 48.4: Request for withdrawal of formal approval (i) Withdrawal of formal approval granted to Maharashtra Industrial Devel....
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....em No. 48.6: Requests for increase/decrease in area (i) Request of M/s. Arshiya International Limited for addition of land in the FTWZ at village Sai, Taluka - Panvel, District Raigad, Maharashtra After deliberation, the Board decided to approve the request of M/s. Arshiya International Limited for addition of land admeasuring 3.410 hectares to the already notified SEZ area of 53.635, thereby making the total area of the SEZ as 57.045 hectares. The approval is subject to the contiguity of the SEZ being maintained. BoA further decided that in case the request for notification of additional land for a notified SEZ is within the area for which formal approval had earlier been granted by the BoA, then it need not be brought before the BoA again and may be decided on file by DoC. (ii) Request of M/s. International Biotech Park Limited for decrease in area of the notified sector specific SEZ for Biotechnology at District Pune, Maharashtra After deliberation, the Board decided to approve the request of M/s. International Biotech Limited for de-notification of 2.299 Ha from the SEZ thereby making the total area of the SEZ as 10.571 Ha. The approval is also subject to ....
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....rmal approval in respect of each of the following 14 (fourteen) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. Capstone Developer Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at 24 Parganas (South), West Bengal, beyond 29th October, 2011. (ii) Request of M/s. Primrose Buildworth Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware including IT/ITES at village Sehsola, TehsilTaoru, District Nuh, Haryana, beyond 24th June, 2011. (iii) Request of M/s. Navi Mumbai SEZ Private Limited for extension of the validity period of formal approval, granted for setting up of a sector specific SEZ for Multi-Services at village Ulwe, Navi Mumbai, Mahartashtra, beyond 26th February, 2012. (iv) Request of M/s. Navi Mumbai SEZ Private Limited for extension of the validity period of formal approval, granted for setting up of a sector specific SEZ for Gems and Jewellery at village Ulwe, Navi Mumbai, Mahartashtra, beyond 26th February, 2012. (v) Request of M/s. Gold....
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.... Taluk, Karnataka, beyond 29th October 2011 (xiv) Request of M/s. Bangalore International Airport Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Airport at Devanahalli, Bangalore, Karnataka, beyond 28th September 2011 Item No. 48.8: Delayed request for first extension of formal approval (i) Request of M/s. Inox Mercantile Company Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Verna, Goa, beyond 18th June, 2010. (ii) Request of M/s. Planetview Mercantile Company Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Gems &Jewellery at Verna, Goa, beyond 26th June, 2010. The Board noted that the matter is sub-judice before the Apex Court in SLP Nos. 527 and 501 of 2011. Therefore, the Board, after deliberations, deferred the above requests till the outcome of the SLPs pending in Hon'ble Supreme Court. Item No. 48.9: Requests for second extension of validity of formal approvals After deliberations, the Board decided to grant second extensi....
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....ity of formal approvals After deliberations, the Board decided to grant third extension of validity of formal approval in respect of each of the following 9 (Nine) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. International Biotech Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at District Pune, Maharashtra beyond 24th October 2011 (ii) Request of M/s. Dr. Fresh Health Care Private Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Gurgaon, Haryana beyond 25th June 2011 (iii) Request of M/s. Platinum Holdings Private Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Hardware and Software at Navallur village, ChengulpetTaluk and Semmencherry village, TambaramTaluk, Kancheepuram District, Tamil Nadu, beyond 5th November 2011 (iv) Request of Kerala Industrial Infrastructure Development Corporation (KINFRA) for third extension of the validity period of formal approval, granted for set....
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....-principle approval, granted for setting up of Multi Product SEZ at Saurar Tehsil, Chhindwara District, Madhya Pradesh, over an area of 3487.076 Ha, beyond 30th July, 2011. The Board sought a report from the Principal Secretary (Industry), Government of Madhya Pradesh about the justification for the request and the progress made in the implementation of the project. The Zonal DC concerned may take up the matter accordingly. Accordingly, the request was deferred. Item No. 48.12: Requests for extension of in-principle approval beyond fifth year. (i) Request of M/s. Bengal SREI Infrastructure Development Limited for extension of the validity of in-principle approval, granted for setting up of sector specific SEZ for Auto Components at Kharagpur, West Bengal, over an area of 200 Ha, beyond 21st June, 2011. The Board sought a report from the Principal Secretary (Industry), Government of West Bengal about the justification for the request and the progress made in the implementation of the project. The Zonal DC concerned may take up the matter accordingly. Accordingly, the request was deferred. Item No. 48.13: Request of M/s. Rewas Port Limited for re-consideration of the d....
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.... setting up unit in KASEZ for processing of Pulses falling under the chapter heading No. 0713 of the ITC-HS Board expressed its concern over the possibility of DTA transactions in the restricted items and directed the respective Development Commissioners to submit detailed reports as to how they propose to ensure that there no such DTA transactions occur. BoA directed that the matter would be examined by D/o Commerce on file. Item No. 48.16: Requests for extension of LoP of units beyond 3rd year (i) Request of M/s. MeghmaniUnichem LLP, a unit in Dahej SEZ for extension of Letter of Permission (LOP) beyond 25th September, 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 25th September, 2012). (ii) Request of M/s. IT Shastra (India) Private Limited, a unit in MADC SEZ, Nagpur for extension of Letter of Permission (LOP) beyond 17th July, 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 17th July, 2012). Item No. 48.17: Requests for e....
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....nder this globally accepted business model and increase exports. In light of these grounds the Board approved the proposal, subject to the condition that it would not exceed the limits specified in the above letter dated 15th Sep. 2011 from the Department of Biotechnology, to ensure that the essential nature of the business of the developer and the SEZ would continue to be Biotech. Item No. 48.19: Request for duty free procurement of Diesel/Fuel required for default authorized operations in respect of Multi Product SEZ at TalukaShirur and Khed, District Pune, Maharashtra by M/s. Khed Economic Infrastructure Private Limited The Board, after deliberations rejected the request as the same is not in conformity with the SEZ Rules. Item No. 48.20: Requests for Industrial License for setting up units in SEZ for supply to Defence Forces (i) Application of M/s. L&T Shipbuilding Limited, a unit in the sector specific SEZ for Heavy Engineering at Kattuppalli village, Tiruvallur District, Tamil Nadu for grant of Industrial Licence to build, repair, refit and convert all types of defence and commercial ships vessels and parts there of After deliberations the Board approved the pr....
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....nsing conditions will be finalized in consultation with the DIPP, the Department of Defence Production and the Ministry of Home Affairs. This is because the special conditions incorporated for industrial licenses for the defence sector have been incorporated by DIPP on the recommendations of the Department of Defence Production, which in turn, consulted the Ministry of Home Affairs in the matter. (iv) Each of the consignment of supply to DTA must be thoroughly examined by DC. (v) While selling in the domestic area, only Government Agencies would be allowed to procure the equipments. (vi) All consignment will be accompanied by an authorized person of the Government procuring agency. (iii) Application of M/s. PMI Engineering Exports Pvt. Ltd. a unit in MEPZ for grant of Industrial Licence for manufacture of High Precision Components for Aero space and other industries After deliberations the Board approved the proposal of M/s. PMI Engineering Exports Pvt. Ltd. for setting up a defence production unit in the MEPZ for manufacture of High Precision Components for Aerospace and other industries, subject to the following conditions: (i) In terms of Section 9 of the SEZ A....
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....f the appellant. After detailed deliberations the Board directed that the matter be examined and decided on file by D/o Commerce. (iv) Appeal of M/s. Mclloyd Polymers Private Limited against order of Development Commissioner, Surat SEZ cancellation of extension of validity of LoP The BoA granted personal hearing to representative of the appellant and sought a report from DC, Surat SEZ as to the grounds for the cancellation of the extension of the Unit's LoP validity for a period of five years beyond, 31.10.2005 (i.e. up to 31.10.2010) and whether the request of the unit for extension of LoP beyond 31.10.2005 was referred to the BoA for a decision thereafter, which is the competent authority in such cases. After receipt of report from the DC, the appeal will be examined on file by the Department of Commerce and decided. Decisions on the Supplementary Agenda Item No. 48.1: Request for first extension of validity of formal approvals (i) Request of M/s. Enfield Energy Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for non-conventional Energy including Solar Energy Equipment/Cell at Kanksa, Panagarh, District....
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....ormal approvals (i) Request of M/s. Jubilant Infrastructure Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Chemicals at Bharuch, Gujarat, beyond 20th August 2011 After deliberations, the Board extended the validity of the formal approval for a period of one year, beyond 20th August, 2011. Item No. 48.5: Request for Authorized Operations (i) Request of M/s Divi's Laboratories Ltd. for authorized operations in the sector specific SEZ for Pharmaceuticals at Chippada village, BhimiliMandal, Visakhapatnam, Andhra Pradesh The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the non-processing areaof the SEZ, as given in the table, subject to the conditions specified with item 48.3: - S.No. Authorized Operations No of Units Area per unit (in sqm) as per FSI/FAR norms as applicable Total area (in sqm) (1) (2) (3) (4) (5) 1. Employee Hostels 400 9 3600 2. Dining Halls 2 288 576 3. Recreation Halls 2 216 432 4. Community Stores 2 72 144 5. Warden room....
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....ransfer of promoter's equity, transfer of developer JV, amalgamation / merger of developer company etc are being received from various SEZs. Similar requests, which were considered in the BoA meeting held on 25th March 2011 were not approved as the representatives of D/o Revenue reiterated their objection that these transactions would amount to sale of the land, which is not permissible under the SEZ Act/Rules. In light of representations received in this regard, the D/o Commerce sought legal advice of D/o Legal Affairs as to whether change in equity structure through transfer/ sale/amalgamation etc. are in the nature of sale of land barred by rule 11(9) of the SEZ Rules or it is a sale of business rather than sale of land. D/o Legal Affairs have clarified that identity of a company does not change with any change in management or pattern of shareholding. Further, a share is not a sum of money, it represents an interest measured by a sum of money. Therefore, change in equity structure through transfer/sale/amalgamation etc. and consequent change in the management cannot be said transfer or sale of land. The land would continue to vest in the company. It has also been clarifie....
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....elopment 10. Shri R.C. Dahra, Additional Director, Government of Haryana, Industries, Haryana, Chandigarh 11. Shri G. Manjunath Gonda, Resident Director, Karnataka Udyog Mitra Karnataka Bhavan - 3, Khelgaon Marg, New Delhi 12. Smt. Nandini Awade Assustabt Resident Commissioner Government of Maharashtra Resident Commissioner Officer New Delhi 13. Shri Sudhir A. Agarwal, Additional Director, Office of Development Commissioner (MSME), Ministry of MSME. 14. Shri A.K. Dham, Liaison Officer, IDCO, New Delhi 15. Shri A.K. Agarwal, Joint Industrial Adviser, Department of Chemical & Petrochemical, Shastri Bhawan, New Delhi 16. Shri R.D. Meena, Research Assistant, TCPO, Ministry of Urban Development 17. Dr. Ashish Kumar Senior Officer DIPP 18. Alok Trivedi, OSD, GoCG, Commerce & Industry LIST OF DEVELOPMENT COMMISSIONERS 19. Smt. Anita Agnihotri, Development Commissioner, SEEPZ SEZ, Mumbai 20. Shri M.S. Rao, Development Commissioner, VSEZ, Visakhapatnam, Andhra Pradesh 21. Shri Suresh Chandra Panda, Development Commissioner, Noida SEZ, Uttar Pradesh 22. ....