TaxTMI 
TaxTMI 
Minutes of the 45th meeting of the SEZ Board of Approval held on 25th March 2011 to consider proposals for setting up of Special Economic Zones
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....been generated in the Special Economic Zones. During the financial year 2009-10, total export of Rs. 2,20,711.39 crore has been made from SEZs registering a growth of about 121.40% over the exports for the year 2008-09. The export in the first half of financial year 2010-11, has been to the tune of Rs. 2,23,132.31 crore, registering a growth of 46.70% over the exports of corresponding period of the 2009-10. 3. At the outset, the Board noted that the proposals in respect of five States, namely, Assam, Kerela, Puducherry, Tamil Nadu and West Bengal which are election bound and which have come under the Code of Conduct, need not be taken up and all these proposals, accordingly, stand deferred. Item No. 45.1: Proposals for setting up of SEZs. (i) Proposal of M/s. Artha Infratech Private Limited, for setting up of a sector specific Special Economic Zone for Electronic Hardware & Software including IT/ITES at Plot No. 21, Sector Techzone-IV, Greater Noida, District Gautam Budh Nagar, Uttar Pradesh by, over an area of 10 hectares. The Board noted that the Developer was in possession of the land. The Government of Uttar Pradesh has also recommended the proposal for formal appro....
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.... of M/s. Mytec Software (Pvt.) Limited for co-developer in the sector specific SEZ for IT/ITES at Madhurwada, Andhra Pradesh, being developed by Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The representative of CBDT pointed out that the while the lease agreement was executed on 26.3.2009, the co-developer agreement was executed much later on 29.11.2010 thereby creating a doubt as to whether the lease agreement was intended for the purpose of setting up of a unit by M/s. Mytec Software (Pvt.) Limited. Therefore, after deliberations, the Board directed DC, VSEZ to examine the lease agreement to ascertain as to what activities were originally authorized by the lessor (i.e. the developer) to the lessee (the proposed co-developer) vide that lease, and to submit a report for consideration of the Board. Accordingly, the proposal was deferred. (ii) Request of M/s. Marg Digital Infrastructure Private Limited for co-developer in the sector specific SEZ for Multi Services at Cheyyur Taluk, Kancheepuram District, Tamil Nadu, being developed by M/s. New Chennai Township Private Limited The Board decided to consider this item after conduct of the impending Assembly ....
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.... Hotels in the zone as a co-developer, the steps taken by the co-developers towards setting them up, the present status of these projects, the occupancy rate of the Hotels in case they have already come up in the zone and also the further requirement of such facilities vis-à-vis earlier approvals and their requirement in the zone. Accordingly, the above proposals were deferred. (vi) Request of M/s. Indian Oil Corporation Ltd. for co-developer in the port based SEZ at Puthuvypeen, Kerala developed by Cochin Port Trust. The Board decided to consider this item after conduct of the impending Assembly elections in the State of Kerala. (vii) Request of M/s. Hyderabad Infratech Private Limited for co-developer in the sector specific SEZ for IT/ITES at Gachibowli village, Serillingampally Mandal, R.R. District, Andhra Pradesh, being developed by M/s. Phoenix Infocity Private Limited. The representative of the D/o Revenue observed that from the co-developer agreement it appears that the developer is irrevocably assigning all its rights over the property. Further, the co-developer has also not provided a copy of the lease agreement. They, therefore, requested that the l....
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....at Gachibowli village, Serillingampally Mandal, R.R. District, Andhra Pradesh, being developed by M/s. Phoenix Infocity Private Limited, for withdrawal of co-developer status. The Board, after deliberations, approved the request of M/s. Phoenix Techno City Private Limited for withdrawal of co-developer status subject to the DC's certificate that the co-developer has refunded all the tax/duty benefits including service tax exemption, which might have been availed under the SEZ Act/Rules. Item No. 45.5: Request of M/s. TAPP Semiconductor India Private Limited, a codeveloper in the sector specific SEZ for Electronics/telecom hardware at SIPCOT Industrial Area, Sriperumbudur, Tamil Nadu, for setting up of FTWZ within the area to be developed as a co-developer. The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. Item No. 45.6: Request of M/s. Torrent Energy Limited (TEL) a co-developer in the multi-product SEZ at District Bharuch, Gujarat being developed by M/s. Dahej Special Economic Zone Limited, for increasing the capacity of the power plant from 1500 MW to 1600 MW The guidelines for power generation tra....
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....in its meeting dated 24th October 2008, which was noted by the members of the BoA, and State Government Representatives in its meeting held on 8th December 2008. Accordingly, the DCs will ensure that all the authorized operations approved by the BoA, in this meeting, are in line with the guidelines. (i) Request of M/s. Arshiya Northern FTWZ Limited for authorized operations in FTWZ at village Ibrahimpur, Junaidpur, urf Maujpur, Tehsil Khurja, District Bulandshahar, Uttar Pradesh The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the processing/non-processing area of the SEZ, as given in the table: - In the Processing Area:- S. No. Authorised operations Quantum Requested Quantum Approved (in sqm) No. of units Area per unit (in sqm) as per FSI/FAR norms as applicable (1) (2) (3) (4) (5) 1. Open Storage Yards (a) Container Yard 1 65000 65000 (b) Over Dimensional cargo yard 1 14000 14000 (c) Empty Container Yard 1 2000 2000 (d) Mainten....
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....cility (j) Pantry canteen & dinning area (k) Data centre (l) Poly clinic & Pharmacy (m) Guest Room 1 1000 1000 3. Product Display Centre 1 1000 1000 4. Essential Maintenance Staff Housing and Dormitories (a) Staff Housing 4 units 600 (each unit having 12 tenements with average area of 50 sqm.) 2400 (b) Dormitories 1 No 1500 (150 beds each having an area of 10 sqm.) 1500 (ii) Request of M/s. L&T Shipbuilding Limited for authorized operations in sector specific SEZ for Heavy Engineering at Kattuppalli village, Tiruvallur District, Tamil Nadu The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. (iii) Request of M/s. Dahej SEZ Limited for authorized operations in the multi-product SEZ at Vagra, District Bharuch, Gujarat The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the proc....
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.... the present request is for the following:- (i) Approval for the Authorized operations for the phase-II of the project; (ii) Quantum of goods required for phase-I & II of the authorized operations; and (iii) Reduction in the quantum of land requirement for some of the authorized operations so as to bring it in line with the Ministry of Environment and Forests' guidelines After deliberations, the Board approved the authorized operations for the phase-II, the quantum of goods required for Phase-I&II and also permitted reduction in quantum of some of the authorized operations for Phase-I, after rationalization of the activities by the developer. The D/o Revenue was of the view that no tax exemption should be available for materials used for any operation carried out beyond the notified area of the SEZ. The Board decided that the exemptions available to the co-developer would be restricted to the part of infrastructure set up for carrying out authorized operations within the SEZ. Accordingly, the Board approved the following authorized operations in the non-processing area of the SEZ:- S.No. Authorized operations Quantum Approved for Ph-I (in Acres) Quant....
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....kshop Equipments 0.75 Common facility for Ph -I & II 0.75 1 Set 2 Electrical Works: (i) Power Transformers GT, ST, UAT & ICT (Generator Transformers, Station Transformers, Unit Aux Transformers & Interconnecting Transformers etc.) Included in respective systems Included in respective systems - Power Transformers: a) GT: 10 Sets b) ST: 6 Sets c) UAT:20 Sets d) ICT: 2 Sets (ii) Electrical Equipment for Balance of Plant (EBOP) including 400 KV Switchyard, Switchgears, Isolators, Lightening Arrestors, Protection System, Earthing, Towers, Busbar Gantries, Conductors, Insulators, Cables, SCADA System, Station lighting, Plant DG Sets etc. 40 Area available in Ph -I 40 2 Sets (iii) 400 KV Transmission lines including Sub-station Bays at CTU/STU end for Grid connectivity/Start-up power and Interconnecting transformers with associated switchgears etc for Transmission/Distribution of power in SEZ area. - 52 mtr x 100 Km (Transmission lines to be implemente d after obtaining right of way) - 52 mtr x 100 Km (Transmission lines to be implemented after ....
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....r (i) Request of M/s. GMR Hyderabad Aviation SEZ Limited for change of sector of notified SEZ at Mamidipalli village, Hyderabad, Andhra Pradesh from 'Aviation' to 'Multi Product-Airport Based' The representative of Department of Revenue queried as to whether the current SEZ is a part of the existing airport. DC, VSEZ confirmed that the SEZ is not part of the Airport. The Board further observed that a multi-product SEZ is required to have a minimum land area of 1000 hectares. Therefore, after deliberation, the Board rejected the proposal for change of sector. Item No. 45.11: Requests for increase/decrease in area (i) Request of M/s. CMC Limited for increase as well as decrease in area of the sector specific SEZ for IT/ITES at village Gachibowli, Rajendra Nagar Taluk, Ranga Reddy District, Hyderabad, Andhra Pradesh After deliberation, the Board decided to approve the request of M/s. CMC Limited for addition & de-notification of land admeasuring 0.78 hectares and 2.62 hectares respectively in the SEZ thereby making the total area of the SEZ as 18.74 hectares. The approval is also subject to the contiguity of the SEZ being maintained and the DC's certificate that the ....
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....s and Developers Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at village Savroli and Dhamni, Taluka Khalapur, District Raigarh, Maharashtra, beyond 12th February 2011. (vii) Request of M/s. Perpetual Infracon Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Faridabad, Haryana, beyond 3rd February 2011. (viii) Request of M/s. Unitech Hi-Tech Projects Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. 1, Sector 144, Noida, Uttar Pradesh, beyond 14th February 2011. (ix) Request of M/s. IFFCO Kisan SEZ Limited for extension of the validity period of formal approval, granted for setting up of Multi Product SEZ at Nellore District, Andhra Pradesh, beyond 4th May 2011. (x) Request of M/s. Rassai Properties & Industries Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Multi Services at Hindupur, Anantapur District, Andhra Pradesh, beyond 3rd February 2011. (xi....
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....idity of formal approvals After deliberations, the Board decided to grant second extension of validity of formal approval in respect of each of the following 09 (Nine) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. N.G. Realty Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Engineering at village Rajoda, District Ahmedabad, Gujarat, beyond 22nd May 2011 (ii) Request of M/s. Mangalore SEZ Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Pharmaceuticals and Petroleum at Baikampady, near Mangalore, Dakshina Kannada District, Karnataka, beyond 29th July 2011 (iii) Request of M/s. Zeus Infrastructure Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Mulund & Thane, Maharashtra beyond 20th June 2011 (iv) Request of M/s. Biotor Industries Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Agro based Chemicals at ....
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....d to grant second extension of validity of formal approval in respect of each of the following 03 (Three) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. Gujarat Hira Bourse for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Gems and Jewellery at Ichhapor, Surat, Gujarat beyond 6th April 2011 (ii) Request of Gujarat Industrial Development Corporation for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for EHTP/IT/ITES at Gandhinagar, Gujarat, beyond 12th July 2011. (iii) Request of M/s. Ansal IT City & Parks Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Plot No. TZ-06, Tech Zone, Greater Noida, Uttar Pradesh, beyond 6th April 2011 Item No. 45.16: Requests for grant of second extension of in-principle approval. There were four proposals for grant of second extension of in-principle approval of which following three have been deferred on account of elections being held in the respective states:- (i) Request of M/s. ....
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.... (iii) M/s. Rewas Port Limited for setting up of Multi Product SEZ, over an area of 2850 Ha, at Rewas District, Raigarh, Maharashtra (up to 25th June 2011) Item No. 45.19: Request for M/s. Reliance Haryana SEZ Ltd. (RHSL) for setting up of multi product SEZ at Gurgaon, Haryana for grant of extension of in-principle approval The Board noted that the developer has sought extension of the LoA up to 31st March 2015. Though the developer possesses more than 1000 hectares presently, the land is not contiguous. In December 2009 when the developer came up for extension the Board decided to give de-novo approval from the expiry of the last extension subject to the developer getting State Government recommendation, which has not been made available. However, recently the SEZ Rules have been amended to enable the Board to sanction extensions of in-principle approval beyond initial validity without restrictions. Keeping in view the circumstances of developer the Board decided to extend the validity of the LoA up to 31st March 2012. Item No.45.20: Consideration of the withdrawal of formal approval granted to M/s. Unitech Kochi SEZ Limited for setting up of sector specific SEZ for IT....
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.... of "Cigarettes (covered under ITC-HS 2402)" subject to the following conditions:- (i) No DTA procurement of Cigarettes shall be made by the unit; (ii) There will be no DTA sale of cigarettes (iii) The Cigarettes shall be supplied only to Bonded Warehouses, Foreign Vessels calling at Kandla Port and Mundra Port and the duty free shops in these ports. The DC, KASEZ will have to build in adequate safeguards for ensuring that there are no leakages and will have to ensure compliance of the above conditions by the unit. Item No. 45.23: Request of M/s. Huawei Telecommunication (India) Private Limited setting up an unit in SEZ for manufacture of telecom/information technology equipments The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. Item No. 45.24: Requests of SEZ units for import of prohibited items (i) Request of M/s. Biomax Fuels Limited, a Unit in VSEZ, for import of used cooking oil DC, VSEZ said that the unit initially depended on crude palm oil for manufacture of bio diesel. However, with the prices of crude palm oil going up considerably, the manufacture of Biodiesel through this rout....
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....00), subject to the condition that:- (i) Above items shall be imported from outside India and no procurement shall be made from DTA till prohibition on export of these item continues in Foreign Trade Policy (FTP) (ii) A Mechanism shall be put in place by DC, KASEZ so that DTA procurement of raw-materials by the unit is strictly monitored. Item No. 45.26: Requests for extension of LoP of units beyond 3rd year (i) Request of M/s. Godrej & Boyce Manufacturing Company Limited, a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP beyond 29th May 2010 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 29th May, 2011). Item No. 45.27: Requests for extension of LoP of units beyond 4th year (i) Request of M/s. Oil and Natural Gas Corporation Limited C2-C3 Project - Dahej, a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP beyond 5th March 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 5th March, 2012). (ii) Re....
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....ty. DC, NSEZ also informed that the developer has revised the development plan and as per the revised plan, the two Private Rastas are passing through the non-processing zone only. DC, NSEZ further stated that in its meeting held on 8th June, 2008 that BoA had agreed in principal to relax contiguity if any public utility services such as roads, water supply lines, sewerage lines, drains, canals or railway lines are passing through the non-processing area of the zone. The Board, therefore, after deliberations decided to allow the developer to establish the contiguity in the proposed SEZ by making underpasses subject to the following conditions:- (i) The developer shall have to construct boundary walls along the private raastas to prevent their users from having any access to the SEZ. (ii) No duty free materials shall be provided for establishing contiguity. Since it is a case of an IT/ITES SEZ involving a small area of 10 hectares, this approval shall not to be treated as a precedent. Item No. 45.29: Requests for M/s. Sparrow Television Private limited, a unit in the Hi- Tec SEZ being developed by SIPCOT at Sriperumbudur, Tamil Nadu, for permission for carrying our manufact....
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....ed that the BoA has agreed to de-notify the SEZ subject to all the benefits being returned by the developer. DC has indicated that all the dues except the CST have been returned by the developer. The BoA noted that the outstanding dues of the developer/units have not been quantified by the concerned authorities. Therefore, the BoA decided that the developer must settle all dues with the concerned agencies prior to de-notification. Any other approach could potentially lead to loss of revenue, hence, the request was not approved. Item No. 45.33: Request of M/s. Hansen Drives Limited, a unit in Synefra Engineering & Construction Limited SEZ, Tamil Nadu for grant of approval for undertaking repair/reconditioning etc. of defective gear box units manufactured by third party (Indian and overseas) manufacturers. The Board decided to consider this item after conduct of the impending Assembly elections in the State of Tamil Nadu. Item No. 45.34: Appeals before BoA (i) Appeal of M/s. Erba Diagnostics Mannheim GmbH against rejection of the request for setting up a unit, in SEEPZ Special Economic Zone, Mumbai. The Board was informed that the appellant is unable to appear before i....
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....ITES at Madhurwada, Andhra Pradesh, being developed by Andhra Pradesh Industrial Infrastructure Corporation (APIIC) The Board sought clarification from the DC, VSEZ on the status of vacancy of the land leased to the co-developer and also as to whether M/s ACN Infotech (India) Private Limited has any interest as a unit in the SEZ. Accordingly, the proposal was deferred and DC, VSEZ was directed to submit his fresh recommendations in light of the above observations. Item No. 45.37: Request for first extension of validity of formal approval After deliberations, the Board decided to grant first extension of validity of formal approval in respect of the following developer for a period of one year beyond the expiry of the validity period: (i) Request of M/s. Uppal Housing Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware & Software IT/ITES at Plot No. 8, Knowledge Park - V, Greater Noida, District Gautam Budh Nagar, Uttar Pradesh, beyond 14th February 2011 Item No. 45.38: Requests for increase/decrease in area (i) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT)....
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....ted slag), scaling and other waste from the manufacture of iron and steel 2619 00 10 Slag, Dross (other than granulated slag), scaling and other waste from the manufacture of iron and steel 2619 00 10 Converted slag (scull) of blast furnace 2619 00 90 Other The Board also directed DC to put in place a mechanism so that DTA procurement of raw-materials by the unit is strictly monitored. Item No. 45.42: Request for extension of validity of LoP Plastic processing units (i) Renewal of LoP for next 5 years in respect of M/s. Plastic Processors & Exporters Private Limited, a unit in NSEZ After deliberation the Board extended LoP of the unit for a further period of 06 (Six) months from the date of expiry of the validity of the extension (i.e. w.e.f. 31.3.2011). The approval is, however, subject to the condition that the unit shall have to abide by the outcome of the final policy for the plastic re-processing units in the SEZs, under examination by DoC. The Chairman, BoA also directed for finalization of the policy for the plastic reprocessing units in the SEZs at the earliest. Decision on the Table Agenda Item No. 45.43: Sale of residential flats by ....