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63 BD 111532 Ee 3113 RD Bo AAgenda SEZw

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Agenda for the 113th meeting of the Board of Approval

for Special Economic Zones to be held on 17th January, 2023

113.1 Ratification of the minutes of the 112th meeting of the Board of Approval held on 29th
October, 2022.
Comments of DGEP on the minutes of the 112th BoA in connection to the renewal of LoA of
the plastic recycling units: DGEP vide OM dated 25.11.2022 has stated that on examination of the
conditions imposed by the BoA, while extending the validity of LoA on temporary basis, the
following issues have emerged for consideration/action:
(i). Customs is mandated to enforce the allied acts as notified. Notification dt.
27.01.2021 issued by Ministry of Environment and Forest is still in force as on date,
which prescribes fulfillment of certain conditions for Plastic Recycling Units of
SEZ/EOU. Further, DoC's policy instructions dt. 27.05.2021, based on said MoEF
Notification, is also in existence. In order to get the BoA decision implemented, for
the units which have not fulfilled these conditions, it appears that MoEF/DoC need to
make suitable retrospective modification/amendment in their notification/policy
instruction so as to avoid future legal complications.
(ii). For units to fulfill the short fall of NFE and other export obligations,
Development Commissioner concerned shall need to look into the feasibility, and their
evaluation reports require to be placed in the next BoA, as stipulated in the Minutes
and thereafter the matter is to be monitored on regular basis, for ensuring strict
compliance of the conditions imposed by the BoA.

113.2 Request for extension of validity of formal approval for developers (4 proposals)

In terms of Rule 6(2) of the SEZ Rules, 2006, the letter of approval of a developer shall be
valid for a period of three years within which time at least one unit has commenced production and
the SEZ become operational from date of commencement of such production. The Board may on an
application by the developer as the case may be, for reasons to be recorded in writing expand the
validity period.
113.2(i) Request of M/s Phoenix Tech Zone Pvt. Ltd. (formerly M/s. Phoenix Embassy
Tech Zone Pvt. Ltd.) for extension of validity of formal approval granted for setting up of
IT/ITES SEZ at Nanakramguda Village, Serilingampally Manda, Ranga Reddy District,
Telangana beyond 06.12.2022.

Name of the Developer : M/s Phoenix Tech Zone Pvt. Ltd. (formerly M/s Phoenix
Embassy Tech Zone Pvt. Ltd.)

Sector : IT/ITES

Location : Sy. No. 118 (P), 120 (P), 121 (P), 122 (P) & 138 (P),
Nanakramguda Village, Serilingampally Mandal, Ranga
Reddy District, Telangana

Extension : The Developer was issued Formal approval on 07.12.2016 and

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granted extension of validity of the same (3 extensions)
upto 06.12.2022. The present request is for further extension
of validity of LoA upto 31.12.2023 (4th extension). The SEZ
stands notified as on date.

Present Progress:

a. Details of Business plan:

Sl. No. Type of Cost Proposed Investment (Rs. in crores)


1 Project Cost 1030.00

b. Incremental Investment made so far and incremental investment since last extension:

Sl. Type of Cost Investment Incremental Investment Total investment made so


No. made upto since last extension i.e., far upto 30.09.2022 (In
31.08.2021 from 01.09.2021 to Rs. crore)
(Rs. in crore) 30.09.2022 (in Rs crore)
1 Development 220.20 151.22 371.42
Cost

c. Details of physical progress till date:-

Sl. Activity % completion % completion during Deadline for


No. last one year completion of
balance work
1. Project Tower-1 85 20 30.09.2023
Development Tower-2 45 35 31.12.2023

Status of construction of the IT buildings: 10,88,355 sq ft and Tower-2 sq ft as 15,81,833

Tower-1 is completed 85%, and the remaining 15% will be completed by 30.09.2023. The total
built-up area in the first tower is 10,88,355 sq. ft. The remaining works, such as installation of Lift,
plastering of Common area etc. are to be completed. Further, the Developer has informed that they
will be starting the interior works of the building as per the requirement of their client and according
to their business model. Moreover, the minimum time required to get a power line from the State
Electricity Authority is six months. Hence, the woks may prolong, and they expect to complete the
project by 30.09.2023.

Tower -2 is planned in sequence with tower -1. 45% of the block works in Tower 2 has
completed. Total built up area in Tower 2 is 15,81,833 sq. ft. The remaining works relating to
Electrical, Plumbing, HVAC, IBMS, installation of Lifts and External works are pending
completion. The Developer has given an undertaking that they will complete the building at the
earliest so that they can showcase the same to clients about their preparedness.

Recommendation of DC, VSEZ:

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The request of the Developer for an extension of the validity of the Letter of Approval for a
further period of one year from 07.12.2022 to 06.12.2023 (4th extension) is recommended for
consideration of the BoA.

113.2(ii) Request of M/s Laxmi Infobahn Aquaduct Pvt. Limited (formerly M/s. GAR
Corporation Pvt. Ltd.) for extension of the validity of formal approval granted for setting up
of IT/ITES SEZ at Kokapet Village, Gandipet Mandal, Ranga Reddy District, Telangana
beyond 18.01.2023.

Name of the Developer : M/s Laxmi Infobahn Aquaduct Private Limited (formerly M/s
GAR Corporation Pvt. Ltd.)
Sector : IT/ITES

Location : Sy. No. 21 (P), 22 (P), 23 and 24, Kokapet Village, Gandipet
Mandal, Ranga Reddy District, Telangana

Extension : Formal approval to the Developer was granted on 19.01.2017.


Further 3 extensions granted and the validity of the LoA is
upto 18.01.2023. The Developer sought approval for extension
of validity of LoA for another one year from 19.01.2023 to
18.01.2024. The SEZ stands notified as on date.

Present Progress:

a. Details of Business plan:

Sl. Type of Cost Proposed Investment (Rs. in crore)


No.
1 Land Cost 0.76
2 Construction Cost 850.00
3 Completion of project 18.01.2024
Total 850.76

Note: Expenditure made so far for the development of site is Rs. 197.57 crores (i.e., for payment of
various fees like building application, land conversion, Earth Work, Environmental Clearance,
Project Consultants, Construction Expenses, DTA procurement, Advance to suppliers, Advance to
Contractors and Finance Expenses and Cost)

b. Incremental Investment made so far and incremental investment since last extension:

Sl. Type of Cost Total investment made Incremental Total investment


No. so far (Rs. in crore) Investment since last made upto
upto 18.10.2021 extension from 30.09.2022
19.10.2021 to (Rs. in crore)
30.09.2022
(Rs. in crore)
1 Land cost 0.76 NIL 0.76

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2 Material procurement 72.05 13.03 85.08
from DTA & Services
3 Construction Expenses 75.72 23.07 98.79
Total Construction
/Cost including (DTA
procurement and 147.77 36.10 183.87
services (They
constructed G+5
Floors)
4 Expenditure made for
site development for
various fees like
Building Application,
Land Conversion,
Earth Work and
Environmental 3.88 9.82 13.70
Clearance, Admin
Expenses, Project
Consultants,
Construction
Expenses, Advance to
Suppliers, Advance to
Contractors and
Finance & Cost
Total 152.41 45.92 198.33

c. Details of physical progress till date:-

Sl. No. Activity % % completion Deadline for


completion during last completion of balance
one year work
1 Excavation is completed 100 -- NA
2 Compound wall is 100 -- NA
completed
3 Completion of the project 41.58 26.02 18.01.2024

• The Developer commenced construction activity during the month of June 2019 with a
proposal to construct 27 floors admeasuring an area of 27 lakh Sq.ft. plus 5 basements having
area of 5 lakh Sq.ft. So far, construction in respect of G+5 floors with 5 basements
admeasuring an area of 5,22,814 sq. ft. have been completed.
• Obtained partial occupancy certificate for 1st to 2nd Floors, 3rd Floor (Part), Basements 1 (part)
and Ground Floor (part) from M/s TSIIC Limited, Hyderabad.
• It is pertinent to state that the Developer has taken interest to bring units in the SEZ. LoA
was issued to M/s Capgemini Technology Services India Limited for setting up of a unit in
the SEZ. Since the prospective clients of the unit changed their business plan from offshore
model to onsite, fixing of the interiors got delayed. Hence, the unit could not commence their
operation within the initial validity period of LoA and sought further extension. The validity
of the LoA of the unit, M/s Capgemini Technology Services India Limited is extended upto
06.09.2023.

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Detailed reasons for delay: a) Non-availability of workmen (Skilled and Unskilled) due to Covid-
19, b) Non-availability of Cement and Steel in the market due to lockdown since February, 2020 and
Second time lockdown in the month of May, 2021 due to Covid-19 and c) Construction activity is
going slowly due to shortage of skilled workmen.

Recommendation by DC, VSEZ:

The request of M/s Laxmi Infobahn Aquaduct Private Limited, the Developer, for extension
of the validity of the Letter of Approval for a further period of one year from 19.01.2023 to
18.01.2024 (4th extension) is recommended for consideration of the BoA.

113.2(iii) Proposal of M/s. Infosys Ltd. for (i) extension of the validity period of formal
approval granted for setting up of IT/ITES SEZ at Noida (U.P.) beyond 14.04.2020 & (ii)
extension in time to construct minimum built-up area in terms of Rule 5(7) of SEZ Rules, 2006.

Name of the developer : M/s. Infosys Ltd.

Sector : IT/ITES

Location : Plot No. A-01 to A-06, Sector-85, Noida (U.P.)

Extension : Formal approval to the developer was granted on


15.04.2015. SEZ was notified vide Notification dated
10.07.2015. The developer has been granted 03
extensions by BoA. Last extension was valid upto
14.04.2021. The developer has requested for further
extension upto 14.04.2025.
Present Progress:

(a) Details of business plan:-


Proposed Investment
S. No. Type of Cost
(Rs. in Crore)
1 Land Cost Already acquired
2 Construction Cost 300.00
3 Plant & Machinery 183.00
4 Other Overheads 0.00
Total: 483.00

(b) Investment made so far & incremental investment since last extension:-
Total Investment Incremental investment
S. No. Type of Cost made so far since last extension
(Rs. in Crore) (Rs. in Crore)
1 Land Cost 161.00 7.00
2 Material Procurement 0.00 0.00
3 Service Cost 14.66 1.91
4 Other Overheads (lease rent) 14.94 6.28
Total: 190.60 15.19

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(c) Details of Physical progress till date :-
S. No. Authorised activity % completion as % completion Deadline for
on date during last one completion of
year balance work
1 - Yet to commence construction activity -
2

Reasons for seeking extension:

The Developer has mentioned that the reason for delay in start of the project include changes
in business scenario and global challenges for IT sector, delay in permission from state bodies etc.
Their journey in Noida has been slower over last 8 years, as the IT/ITES Ecosystem itself is evolving
at a slow pace and the ongoing Covid-19 pandemic crisis, which started in beginning of 2020 had
worsened the situation and compelled to re-align the business operations for this campus. Large
campus will need time to evolve and has to be flexibly developed and holistically curated to meet the
requirements of a varied set of clienteles with international standards and global expectations.
Considering this, they have compelled to shrink their earlier projections and plan and come with a
revised plan at small level. The Developer has mentioned in Phase-1 they wish to construct 7,91,600
Sqft. of area as bifurcated below:-

SDB-1: 5,68,000 Sqft. (G+17)


Food Court-1: 53,600 Sqft.
Basement area: 1,37,000 Sqft.
Service Block: 26,100 Sqft.
Security Block 01: 4,050 Sqft.
Security Block 02: 2,850 Sqft.

The developer has mentioned that they are expecting to achieve completion of Phase-1 plan
by the end of September, 2025.

Observations of DC, NSEZ:-

i. Extended validity of formal approval was valid upto 14.04.2021. As per Condition No. (xvii)
of formal approval, the developer needs to submit application for extension 6 months before
its expiry. However, the developer had not applied for further extension within stipulated
time.
ii. The said SEZ was notified on 10.07.2015, hence the extended validity of construction of
minimum built-up area granted by BoA under Rule 5(7) was valid upto 09.07.2021. However,
the developer has not applied for further extension of timeline for construction of minimum
built-up area.

Rule position: In terms of Rule 5(7) of the SEZ Rules, 2006:

“The developer or co-developer shall have to construct the minimum built up area specified in
this rule within a period of ten years from the date of notification of the Special Economic Zone in
which at least fifty percent of such area to be constructed within a period of five years from the date
of such notification:
Provided that the Board of Approval may, upon request in writing by the Developer, and
after being satisfied that it is necessary and expedient to do so, grant extension beyond the said period

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of ten years for a further period of not exceeding one year, at a time, subject to maximum upto ten
such extension.”

Recommendation by DC, NSEZ:

DC, NSEZ has recommended the request of the developer for extension of formal approval of
M/s. Infosys Ltd. and also extension in timeline for completion of minimum built-up area.

113.2(iv) Request of M/s Rudradev Township Private Limited for extension of validity of
formal approval, granted for setting up of IT/ITES SEZ at Solankurini Village, Madurai
Taluk, Madurai District, Tamil Nadu beyond 31.07.2022

Name of the developer : M/s. Rudradev Township Private Limited

Sector : IT/ITES

Location : Solankurini Village, Madurai Taluk, Madurai District,


Tamil Nadu

Extension : Formal approval to the developer was granted on


26.07.2007. SEZ was notified vide Notification dated
22.04.2008. After the expiry of three years, the validity
period of LOA for the SEZ was extended 6 times by
Ministry of Commerce i.e., up to 31.07.2022. The
developer has requested for further extension upto
31.07.2024.

The Developer stated that they have a built up area of 2,69,150 Sq.mtr and have so far
completed 38% of the project. They have submitted Chartered Engineer’s Certificate in this
regard. The details are listed below :

a. 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/-

b. Investments made so far & Incremental Investment since last extension:

S. No Type of Cost Total Investment made Incremental Investment


so far (in Rs.) since last extension (in Rs.

1 Land Cost 12,47,98,000/- 12,50,000/-

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2 Construction/ Material 58,01,84,000/- 45,50,500/-
Procurement
3 Service Cost 10,15,08,000/- --
4 Other Overheads 75,60,000/- 25,35,000/-
Total 81,40,50,000/- 83,35,500/-

c. Details of Physical progress till date;

S. No Authorised Activity % completion % completion Dead Line for


as on date during last one year completion of
Balance work
1 Roads 48% 2% 31.03.2024
2 Built-up Processing area 38% -- 31.12.2024
3 Electrical Works 5% 1% 31.03.2024
4 Tele-Communications -- -- 31.03.2024
5 Air Conditioning & Others -- -- 31.03.2024

Recommendation by DC, MEPZ:

The proposal of M/s. Rudradev Township Private Limited for seventh extension of LOA up to
31.07.2024 is recommended for consideration in the upcoming BOA meeting.

113.3: Request for extension of validity of in-principle approval for developer (one proposal)

Rule 6 (2)(b) of SEZ Rules, 2006 states that “The letter of approval of a Developer granted
under clause (b) of sub-rule (1) shall be valid for a period of one year within which time, the
Developer shall submit suitable proposal for formal approval in Form A as prescribed under the
provisions of rule 3:

Provided that the Board may, on an application by the Developer, for reasons to be recorded in
writing, extend the validity period:

Provided further that the Developer shall submit the application in Form C2 to the concerned
Development Commissioner, as specified in Annexure III, who, within a period of fifteen days, shall
forward it to the Board with his recommendations."

113.3(i) Request of M/s. Dahej SEZ Limited for extension of validity period of In-
Principle Approval granted for setting up of Multi Product SEZ at Pakhajan, Tal. Vagra, Dist.
Bharuch, Gujarat, beyond 02.11.2022.

M/s. Dahej SEZ Limited (DSL) was granted In-Principle Approval for setting up of "Multi-
Product SEZ" at Pakhajan, tal. Vagra, Dist. Bharuch, Gujarat vide LoA dated 03.11.2021. The in-
principle approval is valid upto 02.11.2022. DSL has informed that as far as progress of the project
and land acquisition is concerned, remaining land acquisition is in process. Hence, DSL requires
more time for land acquisition of the project. In the application, the Developer has mentioned that as
so far they have acquired 640.4147 Hectares of area of land out of the total proposed area of the land

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of 650 Hectares. The Developer has requested for extension of validity of in-principle approval for
two years i.e. upto 02.11.2024.

Specified Officer along with Preventive Officer Dahej SEZ visited the proposed site and
factual report/observation made by the team is as under;

• Approach road to the proposed site is at very initial state and neither it has been connected
with the main road. (Dahej Bharuch State Highway). Only Kuccha road has been noticed
• At the said Kuccha road some pipes were found to be lying there apparently of the
site/contractor which were looked after by two private security guards posted by DSL.
• One incomplete left over weighbridge was noticed at the proposed site.
• No electricity line, sewerage, drainage, water line among others were observed.

It has been concluded in their report that no infrastructure has been developed by the DSL.
DSL vide letter dated 09.12.2022 has informed that required infrastructure in the proposed SEZ will
be developed after receipt of requisite approvals.

Recommendation by DC:

DC Dahej SEZ has recommended the proposal for extension of validity of in-principle
approval.

113.4: Request for extension of LoA of unit (4 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 Approval i.r.o units in SEZs are governed by
Rule 19(4) of SEZ Rules.
• Rule 19(4) states that LoA shall be valid for one year. First Proviso grants power to DCs for
extending the LoA for a period not exceeding 2 years. Second Proviso grants further power to
DCs for extending the LoA for one more year 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 onwards
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.

113.4(i) Request of M/s Rusan Pharma Ltd. a unit in Indore SEZ for extension of Letter
of Permission (LoA) beyond 01.12.2022 for one year up to 01.12.2023.

LoA issued on : 02.12.2016

Nature of business of the Unit : Manufacturing of API, Bulk Drugs

No. of Extensions : (02) by DC Indore SEZ beyond original validity and


(03) by BoA (SEZs)

LoA valid upto : 01.12.2022

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Request : Further extension for one year, up to 01.12.2023

Details of Business plan:

S. No. Type of Cost Proposed Investment (Rs. in


crores)
1. Land 3.19

2. Site Development — Road works, Boundary 6.27


walls, Facade and Landscaping etc.
3. Civil Construction Work — Main Production 37.36
Blocks, Miscellaneous Building (including
structure, partition walls and floor finishing)
utility, security office, security cabin, ETP/STP
and Pump house + UG/OG Tanks, Fuel Yard,
HT Yard, Solvent Tank Farm
4. Plant & Machinery (including of Electrical 60.02
Installation, Utilities and process equipment &
QC lab etc.)
5. Other Pre-Operative Expense 6.36

Total 113.20

(b) Incremental Investment made so far and incremental investment since last extension —

As per the Certificate issued by the Chartered Accountant, M/s Gupta Saharia & Co.,
Mumbai, is as under:
S.No. Type of Cost Total investment Incremental
made so far Investment since last
extension up to
01.12.2022
1. Land 3.19 0.00
2. Building & 29.20 19.46
Construction
3. Computer, Printer and 0.20 0.17
Server
4. Plant & Machinery 16.22 15.08
5. Utility Equipment 13.43 12.86
Cost
6. Fire & Safety 0.69 0.63
7. Motor vehicle 0.19 0.00
8. Electricity installation 5.54 5.30
Total 68.66 crores 53.50 crores

(c) Details of physical progress till date :-

As per the Certificate issued by the Chartered Engineer, M/s Doshi Consultant Pvt. Ltd.,
Indore, 70% work has been completed out of which 45% has been completed in last one year:

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S.No Activity % % Deadline for
completion completion completion of
during last balance work
one year
1. Acquisition of Land 100% 100% --
2. Civil Work — Land 70% 45% 3 months
excavation, cutting filling and
leveling of plot done and internal
roads has been excavated.
The slab casting of major building
— Production Block has already
been completed for 3 modules
and for remaining 2 modules, it
will be done in next 15 days.
Other Ancillary Building like
utility block, R&D, So 1 and So 2
are already completed
Other work like drain and road
work has also been intimated and
is under process
3. Water & Temporary 100% Already done --
electrical connections
4. Major Ordering Ordering Items 3 months (in
completed and delivered on site completed, delivered on Installation and
— Delivered on site from Commissioning)
Items delivered at site site Nov. 2021 to
1. Chiller till date.
2. Boiler
3. Chimney
4. Fire Pump
5. UG Solvent tank
6. Solvent Recovery Column
7. File Compactor
8. Lab furniture (R&D)
9. DG Sets
10. Cable
11. UPS and Batteries
12. VCB
13. Transformer
14. UG Tanks
15. GLR
Ordered and Work in
Progress
16. Network and LV
17. C22 ANFD
18. Process Pumps
19. Lift
20. Scrubber

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5. Major Orders in queue — In process -- 1 month
(bought out items, to be procured
and installed)
1. RCVD Accessories
2. HDPE/MS tanks
3. MS Structure for pipeline and
utilities
4. Server and computers
5. Automation Cable
6. NFLP and Street Light
7. QC and R&D Equipments

(d) Detailed reasons for delay —

i. The Company has submitted that they were allotted plot No. M-21 in SEZ Phase II for which
payment was made to the MPIDC Ltd., Regional Office, Indore, the Developer on
05.07.2017, while the lease deed was registered in December 2017. While registering the
lease deed, the concerned Sub-Registrar Office was erroneously imposing Rs. 77,15,112/- as
stamp duty on the allotted plot and owing to this legal issue the Company represented before
the State Govt., and the matter was finally heard and decided by the Commissioner, Indore
Division in favour of the Company on 11.09.2019. Accordingly, the registered lease deed
could only be handed over to the Company in the month of November, 2019.
ii. As the company has planned implementation of a Bulk Drug and Active Pharmaceutical
Ingredient (API) manufacturing unit in Indore SEZ, it is required to obtain Environment
Clearance from the State Environment Impact Assessment Authority (SEIAA) before starting
the project implementation activities. As per the norms of MP Pollution Control Board
(MPPCB), no Bulk Drug and Active Pharmaceutical Ingredient (API) manufacturing unit can
start its project implementation at its site in the Industrial area before taking Environment
Clearance from the Competent Authority i.e. the SEIAA-M.P., Ministry of Environment,
Forest and Climate Change (MoEF&CC). The unit received the Environment Clearance on
21.08.2020.
iii. The total investment made by the Company till date is Rs. 68.66 crores, out of which Rs.
24.93 crores has been invested from its own funds and balance of Rs. 43.73 crores through
Bank finance. According to the Company, the process was almost in final stage but due to
increased demand in Pharma sector the Company decided to increase its capacity and as a
result the project cost has also increased from the earlier proposed Rs. 58.94 crores to Rs.
113.20 crores. Due to this, the process of allocation of funds from Bank got delayed by six
months and finally in the month of September 2021, the bank has disbursed the funds to the
Company.
iv. Due to the Covid-19 pandemic, initially the project implementation was delayed by 6-7
months last year. Thereafter, the company started project implementation in September -
October 2020 and then again due to second wave the project was further delayed by another
5-6 months. Further, due to heavy rainfall during the current year, there was water logging at
site due to sloppy terrain which affected the construction work. According to the unit, being a
rocky terrain, rock cutting was a major time consuming part in civil work. Therefore, on
account of delay in environment clearance, delay in lease deed registration, Covid-19
pandemic situation and heavy rainfall etc., the project implementation activities of the
company got delayed.

(e) Steps taken to implement the project:

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i. The Company has received Environment Clearance from the State Environment Impact
Assessment Authority (SEIAA-M.P.), Ministry of Environment, Forest & Climate Change
(MoEF&CC) on 21.08.2020 and Consent to Establish from M.P. Pollution Control Board on
04.09.2020.
ii. The Company has obtained financial sanction from its Bank.
iii. The Company has obtained approval of building plans.
iv. The Company has obtained GST Registration certificate.
v. The Company has appointed the Civil Contractor, M/s Eco Build and the civil work will be
completed by December 2022.
vi. Temporary electricity connection and permanent water connection has been installed at site.
vii. The Company has obtained registration as Principal Employer under Contract Labour Act.
viii. The Company has amended IEC and taken membership of Pharma council.
ix. The Company has executed Bond-cum-Legal Undertaking under SEZ Rules.
x. The Company has procured almost all major plant & machinery and utilities.

Recommendation by DC, ISEZ:

In this case, the requisite two-third of activities as per Rule provisions were not completed
and therefore the last three extensions i.e. beyond 2nd, 3rd and 4th year were granted by the Board of
Approval for SEZs. Pursuant to allotment of land and registration of lease deed of the allotted plot
No. M-21 in SEZ Phase II in December 2017, due to stamp duty issues the lease deed was handed
over to the unit in November, 2019, and the unit has could start its construction activities only in the
month of October, 2020. The constructions activities are presently ongoing at site. A Chartered
Accountant Certificate showing the expenditure incurred in the project and a Chartered Engineer's
certificate regarding the physical progress made in the project is also enclosed with the proposal of
the unit.

As per the project profile, M/s Rusan Pharma Ltd. is an established entity in the Pharma
sector. The company was incorporated in the year 1994 and is having one manufacturing facility of
formulations in Kandla SEZ and one at Dehradun besides one API facility at Ankleshwar. The
company is also having one formulation and one API facility in Europe.

DC Indore SEZ has therefore recommended the request of extension of LoA for a further
period of one year up to 01.12.2023 in view of the following:-
The unit has been allocated land in the SEZ by the Developer and the lease deed has also been
registered. Since the unit has made an investment of Rs. 68.66 crores in the project and has also
obtained the Environment Clearance from the State Environment Impact Assessment Authority
(SEIAA-M.P.), Ministry of Environment, Forest & Climate Change (MoEF&CC) and Consent to
Establish from M.P. Pollution Control Board apart from other approvals, they appear to be serious to
implement the proposed project. Accordingly, the proposal for extension of validity of LoA dated
02.12.2016 for a further period of one year up to 01.12.2023, as requested by the unit, is
recommended for approval of the BoA as per Rule 19(4) of SEZ Rules, 2006.

113.4(ii) Request of M/s HLE Engineers Pvt Ltd in the Plot No Z/96/B, Dahej SEZ Ltd,
Dahej, Village: Luvara, Tal: Vagra, Dist: Bharuch, Gujarat for the Extension of the Letter of
Approval (LOA) by one more year i.e. upto 14.10.2023

LOA issued on (Date) : 15.10.2015

Page 13 of 36
Nature of business of the unit : Manufacturing of items under Chapter 29 &
38.

No. of Extensions : 1(One) by DC Dahej SEZ and 1(One) by BOA

LoA valid upto : 14.10.2022

Request : For further extension for 1 (One) year upto


14.10.2023.

Present Progress furnished by applicant unit:-

a. Details of Business Plan:

Sr.No Type of Cost Proposed Investment(INR in Cr)


1 Land, Plant & Machinery, Etc 95.4861
2 Pre-Operative Expenses, Contingencies, Etc 15.0951
Total 110.5812

b. Incremental Investment made so far and incremental investment since last extension:

Sr Type of cost Total Investment made Incremental investment


No So far (INR in Cr) since last extension
1 Land 6.1556 NIL
2 Civil Construction 1.44
Total 6.1556 1.44

c. Details of the physical progress till date:

Sr. no. Activity % Completion % Completion Deadline for


during last one completion of
year balance work
1 Shrub Cutting 50% 20% 28.02.2023
2 Leveling 10% NIL 30.04.2023
3 Land filling 10% NIL 30.04.2023
4 Compound Wall 50% 31.12.2022
5 Warehouse 5% 31.03.2023

M/s. HLE Engineers Pvt Ltd vide their letter dated 26.09.2022 informed that on 24.03.2020 a
national lockdown in the wake of COVID-19 was clamped. Gujarat Government lifted the COVID
restrictions subject to mask and social distancing only with effect from 02.03.2022. These 2 years no
activities were allowed by the Government. The skilled and unskilled labourers reached safely at
their homes either or not returned due to paranoia or stopped to do so by their beloved ones.

M/s. HLE Engineers Pvt Ltd vide their email dated 20.10.2022 further informed that they are
waiting for the Environment Clearance from the Ministry of Environment & Forests and Consent to
Establish from GPCB, and Explosives License from PESO ( Petroleum Explosives and safety
organization). They have also informed that the encroachment of the plot and the subsequent
eviction, the permissions and licenses delayed the completion of the plant commissioning.

Page 14 of 36
Further, the unit also informed that the SEZ boundary wall was demolished by miscreants and
obstructing construction activities and the gap is enough to pass a truck and the miscreants came in
and out through this gap and threatening their construction, contractor and work men. The contractor
and their men and women are not ready to work in their premises due to fear. As a consequence work
is put up in abeyance umpteen times by the contractors fearing life and they had filed a police
complaint.

Since last extension, they have already invested approx Rs. 8 crore on various activities in the
plant including making an advance payment for Plant & Machinery.

Recommendation by DC, Dahej SEZ:

DC, Dahej SEZ has recommended the proposal to the Board of Approval, for extension in
validity of LOA dated 15.10.2015 (extended upto 14.10.2022) for the further period of one year i.e.
up to 14.10.2023.

113.4(iii) Request of M/s. Futuristic LED Pvt. Ltd. in the Noida SEZ for extension of
Letter of Approval (LOA) beyond 19/11/2022 upto 19/11/2023

LoA issued on : 20/11/2019

Nature of business of the Unit : Licensing Services for the Right to use Computer
Software and Database, Information Technology
Design and Development Services, Hosting and
Information Technology (IT) Infrastructure
Provisioning Services, Other IT Service.

No. of Extensions : 2 by DC, Noida SEZ

LOP valid upto : 19/11/2022

Request : For further extension upto 19/11/2023

Present Progress:
(a) Details of Business plan
S. No. Type of Cost Proposed Investment
(Rs. in Lakhs)
1 Capital Goods 525
2 Operational Expenses 55
Total: 580

(b) Investment made so far & incremental investment since last extension
S. No. Type of Cost Total Investment made Incremental investment
so far (Rs. in Crore) since last extension (Rs. in

Page 15 of 36
Lakhs)

1 Building 1.47 -
2 Building WIP 4.59 4.59
Total: 6.06 4.59

(c) Details of Physical progress till date :-


S. No. Type of cost % completion % completion Deadline for
as on date during last one completion of
year balance work
1 Building 20% 20% December 2024

Detailed reasons for delay:-


Unit has stated following reasons:

• That they acquired property via Auction from ICICI Bank (Plot no. 126/127, NSEZ Noida
was acquired in this reference where operations are planned to start) on 20-02-2020.
• But they were stuck up in COVID in Feb, 2020 and hence they could not start any activity.
• They then approached NSEZ for transfer of property and they got physical possession of Plot
on 29-12-2021.
• Unit has further stated that first of all due to COVID, construction could not be started and
people were working from home and hence activities like Lease Deed could not happen.
Lease deed from NSEZ was delayed due to issues of unpaid Custom duty on said plot which
NSEZ wanted them to take responsibility of. They disputed this and with multiple meetings at
level of senior officials of NSEZ, they finally got the permission and hence Lease Deed was
executed on 21-02-2022.
• On execution of lease deed, they approached with Fire Department, UP Police for NOC
followed by Noida Authority for approval of building drawings. All these activities took lot of
time and they finally got approval from Noida authority only in Oct 2022.
• After getting approval from Noida Authority, their building construction is going on
extremely fast pace. As of now basement and ground floor work of the project is under
progress. Further, the deadline for completion of construction work has been mentioned as
December’ 2024.

Recommendation by DC:
DC, Noida SEZ has recommended the request of extension of LOA beyond 19.11.2022 for a
period up to 19.11.2023.

113.4(iv) Request of M/s. Atar Mohd Saeed Dawood Private Limited in the JNPT-SEZ for
extension of Letter of Permission (LOP) beyond 20.08.2022 for 4th extension upto 20.08.2023.

LoP issued on (date) : 21.08.2018.

Nature of business of the Unit : Manufacturing and Export of Attar, Perfume &
Perfumery Compounds (with Alcohol &
without Alcohol), Agarbatti Bakhoor, Agarbatti

Page 16 of 36
& Dhoop, Sandalwood Handicraft article for
packing, Sandalwood Oil, Agarwood & Agar
wood oil, Natural Essential Oils, Refused Dust,
Synthetic Cosmetics, Other Packing Material
for export.

No of Extensions : 2 extensions granted by DC SEEPZ SEZ. 1


extension granted by BOA.

LOP valid upto : 20.08.2022.

Request : For further extension for one year, up to


20.08.2023.
Present Progress:

a. Details of business Plan:-

S. No Type of cost Proposed Investment (Rs. in lakhs)


1. Land Cost 274.26
2. Construction Cost (Civil, Electrical, 121.09
Mechanical, Structural, ETP, Fire, etc)
3. Plant & Machinery 100.00
4. Computers, Software's, Licenses etc. 4.00
5. Office Capital Goods includes AV 4.00
Equipment's, PA Systems, Access
Control systems, etc
6. Office Furniture, Chairs, Workstation 3.75
and other fit out related items such as
carpets etc
Total 476.14

b. Incremental investment since last extension:-

S. No. Type of Cost Total Investment made so far Investment made during
(Rs. in lakhs) last one year (Rs. in
lakhs)
1. Land Cost 258.38 15.08
2. Construction Cost (Civil, 294.02 267.64
Electrical, Mechanical,
Site exps etc)
3. Plant & Machinery NIL NIL
4. Computers, Software's, NIL NIL
Licenses
5. Office Capital Goods 3.70 3.70
includes AV Equipment's,
PA Systems, Access
Control systems etc

Page 17 of 36
6. Office Furniture, Chairs, 4.20 3.70
Workstation and other fit
out related items such as
carpets etc
7. Other pre-operative 20.65 16.00
expenses
Total 580.95 306.12

C. Details of physical progress till date:-


S. No. Authorised activity % completion % completion Deadline for
during last one completion of
year balance work
1. Generator Room/Electric 50% 50% 30.11.2022
Substation/FO Generators (To
augment MSEB Power)/UPS
Room/Distribution
substation/HSD Yard
2. Internal Roads with street 25% 25% 31.12.2022
Lighting and signage's
3. Boundary 100% 0% -
walls/Gates/Fencing/Security
office/Security Posts
4. All civil and Interior Nil Work Awarded 31.03.2023
work/Electrical
work/BMS/Air
Conditioning/Fire Protection
system
5. Development of Nil Work awarded 31.03.2023
Landscaping/Garden space
6. Recruitment of Employees Nil They will hire 31.03.2023
once construction
complete
7. Building Completion Nil To be obtained 31.03.2023
certification and occupancy after completion
certificate of work

Detailed Reason for delay: M/s. Atar Mohd Saeed Dawood Private Limited has stated that they are
unable to complete the unit under specified time due to Covid, Nationwide Lockdown and Non
availability of Labour etc., however, the company has discussed the whole situation with their civil
contractor M/s. Aahan Associates and reassessed the construction period that may go up to March
2023.

Recommendation by DC

DC SEEPZ-SEZ has recommended the request of extension of LOP for a period of one year
up to 20.08.2023.

113.5: Request for co-developer status (3 proposals)

Page 18 of 36
In terms of sub-section (11) under Section 3 of the SEZ Act, 2005, any person who or a State
Government which, intends to provide any infrastructure facilities in the identified area or undertake
any authorized operation after entering into an agreement with the developer. Such proposal shall be
made to the Board of Approval for consideration.

113.5(i) Request of M/s Topnotch IT Developers LLP for Co-Developer status in M/s.
Phoenix Tech Zone Pvt. Ltd SEZ, Telangana.

(i) Name of the Developer & Location M/s. Phoenix Tech Zone Pvt. Ltd. at
Telangana
(ii) Date of LoA of Developer 17.02.2017
(iii) Sector IT/ITES SEZ
(iv) Date of notification 17.03.2017
(v) Total notified area 2.02 Ha
(vi) Proposed Co-developer M/s Topnotch IT Developers LLP
(vii) Details of Infrastructure facilities/authorized Operation and maintenance, upgradation
operations to be undertaken by the co- of Infrastructure in relation to 47010 SFT
developer on 11th floor, Tower-B of SEZ project
(viii) Total area on which activities will be Leasable Area admeasuring 47010 SFT
performed by the co-developer along with proportionate undivided share
in project land located at 11th floors of
Tower B of the SEZ Project
(ix) Proposed investment by the co-developer 40 cr
(x) Net worth of the co-developer 1,00,000
(xi) Whether entered into a Co-developer Yes, 27.10.2022
agreement, if so date

Recommendation by DC, VSEZ:

On scrutiny of the application, it was noticed by VSEZ that the net worth of M/s Topnotch IT
Developers LLP is only Rs.1.00 lakh. In this connection, it is brought to the notice that in one of the
proposals of M/s IGTPL, CSEZ sought clarification from Department of Commerce regarding the
applicant’s net worth. The Department of Commerce vide letter dated 13th May 2022 forwarded the
legal opinion obtained from the Department of Legal Affairs in which it is clarified that there is no
provision prescribed in the SEZ Act 2005 & Rules 2006 for requirement of minimum net worth for
obtaining Co-Developer status at the time of filing application.

Considering that the Co-Developer would raise bank finance for the proposed investment
after obtaining Co-Developer status, the request for granting Co-Developer status to M/s Topnotch IT
Developers LLP in Phoenix Tech Zone Pvt. Ltd SEZ is recommended for consideration of BoA.

113.5(ii) Request of M/s. Nila Spaces Limited, Ahmedabad for approval as Co-Developer
in Multi Services SEZ at Ratanpur, District Gandhinagar, Gujarat, developed by M/s. GIFT
SEZ Limited.
(i) Name of the Developer & Location M/s. GIFT SEZ Limited, Villages Ratanpur
and Phiropur, District Gandhinagar,
Gujarat

Page 19 of 36
(ii) Date of LoA of Developer 07.01.2008
(iii) Sector Multi-services
(iv) Date of notification 18.08.2011
(v) Total notified area 105.4386 Ha
(vi) Proposed Co-developer M/s. Nila Spaces Limited
(vii) Details of Infrastructure facilities/authorized Development, Construction, Maintenance
operations to be undertaken by the and operation of Commercial
codeveloper spaces/office/building in the processing
area of GIFT SEZ
(viii) Total area on which activities will be 5000 sq. mt. (Land area) & 7500 sq.mt.
performed by the co-developer (Built-up area)
(ix) Proposed investment by the co-developer Rs.30 cr
(x) Net worth of the co-developer Rs.50.97 cr
(xi) Whether entered into a Co-developer No. It will be executed once letter of
agreement, if so date approval will be issued by Development
Commissioner, SEZ. Draft co-developer
agreement is provided.

DC, GIFT SEZ has informed that at present in GIFT SEZ, Gandhinagar, there are three co-
developers namely, (i) M/s Volupia Developers Private Limited (ii) M/s Brigade (Gujarat) Projects
Private Limited and (iii) M/s ATS Savvy Developers LLP; these approved co-developers have
constructed buildings for use by the SEZ units. The built-up space in these buildings are almost
allotted/used, thus the need for new buildings have arisen.
The GIFT-multi-services SEZ, Gandhinagar is functional with over 400 plus broad sector
services units approved including the financial services units of Banks, Insurance companies, Stock
market entities, related units aviation products/services leasing companies, other ancillary services
units, and upcoming areas of business (like Bullion) exchanges, maritime services units, which
requires additional built-up area/premises for such approved entities.

Recommendation by DC, GIFT SEZ:-


In view of the increase in economic activity and other developments at GIFT-SEZ,
Gandhinagar, this office recommends the proposal of M/s. Nila Spaces Limited, Ahmedabad as a Co-
Developer, for construction of new commercial building over an area admeasuring 5000 square
meters with built-up area of 7500 square feet within GIFT-SEZ, subject to approval by the Board of
Approval.

113.5(iii) Request of M/s. Sangath Infrastructures Private Limited, Ahmedabad for


approval as Co-Developer in Multi Services SEZ at Ratanpur, District Gandhinagar, Gujarat,
developed by M/s. GIFT SEZ Limited.
(i) Name of the Developer & Location M/s. GIFT SEZ Limited, Villages Ratanpur
and Phiropur, District Gandhinagar,
Gujarat
(ii) Date of LoA of Developer 07.01.2008
(iii) Sector Multi-services
(iv) Date of notification 18.08.2011
(v) Total notified area 105.4386 Ha

Page 20 of 36
(vi) Proposed Co-developer M/s. Sangath Infrastructures Private
Limited
(vii) Details of Infrastructure facilities/authorized Development, Construction, Maintenance
operations to be undertaken by the and operation of Commercial
codeveloper spaces/office/building in the processing
area of GIFT SEZ
(viii) Total area on which activities will be Total 2,500 sqmt (Office Building of 1,500
performed by the co-developer sq.mt. and Parking area of 1,000 sq.mt.)
(ix) Proposed investment by the co-developer Rs.9 cr
(x) Net worth of the co-developer Rs.139.89 cr (as on 31.03.2021)
(xi) Whether entered into a Co-developer No. The agreement will be made on getting
agreement, if so date the mandatory approval from the Board of
Approval, MOCI and the Development
Commissioner, GIFT SEZ.

DC, GIFT SEZ has informed that at present in GIFT SEZ, Gandhinagar, there are three co-
developers namely, (i) M/s Volupia Developers Private Limited (ii) M/s Brigade (Gujarat) Projects
Private Limited and (iii) M/s ATS Savvy Developers LLP; these approved co-developers have
constructed buildings for use by the SEZ units. The built-up space in these buildings are almost
allotted/used, thus the need for new buildings have arisen.
The GIFT-multi-services SEZ, Gandhinagar is functional with over 400 plus broad sector
services units approved including the financial services units of Banks, Insurance companies, Stock
market entities, related units aviation products/services leasing companies, other ancillary services
units, and upcoming areas of business (like Bullion) exchanges, maritime services units, which
requires additional built-up area/premises for such approved entities.

Recommendation by DC, GIFT SEZ:-


In view of the increase in economic activity and other developments at GIFT-SEZ,
Gandhinagar, DC has recommended the proposal of M/s. Sangath Infrastructures Private Limited,
Ahmedabad as a Co-Developer, for construction of 1,500 square meters and parking area of 1,000
square meters within GIFT-SEZ, subject to approval by the Board of Approval.

113.6: Request for addition area of the SEZ (one proposal)

In the 40th meeting of the BoA held on 08.06.2010, the Board had directed that the proposals
for increase in area upto 10% of the notified area of the SEZ need not be brought before the Board.
Consequently, the proposals for increase in area upto 10% are being processed on file and the
proposals beyond 10% are placed before the BoA for its approval and subsequently, processed on file
for notification.

113.6(i) Request of M/s. Cheyyar SEZ Developers Pvt. Ltd. for additional area
notification of 34.82 Ha (more than 10%) to their Multi-sector SEZ at SIPCOT Industrial
Park, Bargur, Tamil Nadu notified over an area of 59.398 Ha.

M/s. Cheyyar SEZ Developers Pvt. Ltd. was granted formal approval on 13.11.2015 for
setting up of an SEZ for Footwear at SIPCOT Industrial Park, Bargur, Tamil Nadu. The SEZ was

Page 21 of 36
notified on 30.03.2016 over an area of 59.398 Ha. The Developer has now requested for increase in
area of 34.82 Ha (i.e., more than 10% to the already notified area of 59.398 Ha).

As the instant proposal of increase in area is beyond 10%, therefore, it is placed before the
Board for its approval.

As per DoC’s O.M. dated 14.07.2016 required documents for additional area notification and
the status of the instant case are as below: -
S. No. Documents/Details Required Status

(i). Certificate from concerned State Government or its authorized Yes, provided
agency stating that the developer has irrevocable rights to the said
area as SEZ.

(ii). Form-C4 along with DC’s recommendation Yes, provided

(iii). Inspection Report in prescribed format Yes, provided

(iv). Developer’s Certificate Countersigned by DC Yes, provided

(v). Legal Possession Certificate from Revenue Authorities Yes, provided

(vi). Non-Encumbrance Certificate from Revenue Authorities Yes, provided

(vii). Land details of the area (with clearly specified survey numbers) to Yes, provided
be notified duly certified by revenue authorities

(viii). Colored Map clearly indicating Survey numbers and duly certified Yes, provided
by revenue authorities

(ix). Copy of Registered Lease/Sale deed Yes, provided

Further, in compliance of DoC’s Instruction No.102 dated 18.11.2019 regarding physical


inspection and contiguity condition, an Inspection report has been provided. As per report, the site
was inspected on 25.02.2022 by DDC, MEPZ along with Revenue Inspector, Pochampalli, VAO-
Balethottam and representative of the Company. It is noted that the proposed additional area of 34.82
Ha was de-notified by SIPCOT, Bargur and the said area was allotted to M/s. Cheyyar SEZ
Developers Ltd. by SIPCOT. The contiguity of the SEZ has been maintained.
Recommendation by DC:

DC, MEPZ has recommended the proposal for the consideration of the BoA.

113.7: Renewal of LoA of plastic recycling units

113.7(i) Request for renewal of LoA of the plastic recycling units in Kandla SEZ, Falta
SEZ and Noida SEZ for a period of five years.
The request of plastic recycling units for renewal of their LoA for a period of five years was
placed before the Board of Approval in its 112th meeting held on 29.10.2022. The BoA, by

Page 22 of 36
consensus, decided to extend the validity of LoA on temporary basis of only those units which fulfil
the following conditions:

1. Units should have been functional and carried out at least some production during the
stipulated period of 18 months (i.e. 27th January, 2021 to 26th July, 2022).
2. Units should have made at least some exports during the stipulated period of 18 months (i.e.
27th January, 2021 to 26th July, 2022).
3. Units shall undertake not to carry out any DTA sales till they fulfil the shortfall of NFE and
export obligations for the period upto their period of expiry of validity i.e. 26th August 2022.
On fulfilment of shortfall in NFE and other export obligations as stipulated above which shall
be confirmed by the jurisdictional DC, and the DC may allow DTA sale to units subject to
fulfilling of policy dated 27.05.2021.
4. The extension would be granted for a further period upto five years from 27th August, 2022
onwards to align the validity with other units. Such extension shall be on temporary basis
only, which will be reviewed by Development Commissioner concerned from time to time.

The Board further directed that all the concerned Development Commissioners shall take
necessary action accordingly and submit a report to the BoA in the next meeting.

Report by Kandla, SEZ: In compliance of the BoA’s above direction, DC, Kandla SEZ, vide letter
dated 12.12.2022 has stated that out of 7 proposals sent to DoC for renewal of LoA, only 1 unit viz.
M/s. New Plastomers India Ltd. has not carried out any production activity/exports during the
stipulated period of 18 months (i.e., 27.01.2021 to 26.07.2022). The following 6 units have carried
out production activity/exports during the stipulated period of 18 months (i.e., 27.01.2021 to
26.07.2022) and were granted renewal of LoA on temporary basis for further period of five years
from 27.08.2022 to 26.08.2027: -

1. M/s. Blaze International


2. M/s. Polyrec Processors Pvt. Ltd.
3. M/s. Renew Plastics
4. M/s. Satguru Polyfab Pvt. Ltd.
5. M/s. R. R. Vibrant Polymers Ltd.
6. M/s. Ansa Polymers Ltd.

Further, KASEZ has informed that M/s. R. R. Vibrant Ltd. has approached the Hon’ble High
Court of Gujarat and filed Special Civil Application No. 20374 of 2022 for non-renewal of their LoA
as per 111th meeting of BoA held on 28.07.2022 and the Hon’ble Court vide Oral Order dated
07.10.2022 has granted relief to the Unit and to avoid contempt of Court, KASEZ has issued LoA to
M/s. R. R. Vibrant Polymers Ltd. with “no DTA sale” condition in order to keep the said unit at par
with other plastic recycling units.

Report by Falta, SEZ: DC, Falta SEZ vide letter dated 14.12.2022 has stated that on examination of
the records available with them, Data of NSDL and the documents submitted by the 6 recycling
plastic units, they have granted renewal of LoA to the following 3 plastic recycling units, fulfilling all
the 3 terms and conditions, on temporary basis for further period of five years from 27.08.2022 to
26.08.2027: -

1. M/s. Amarnath Enviroplast Ltd.


2. M/s. Precision Polyplast Pvt. Ltd.
3. M/s. Sukhi India Pvt. Ltd.

Page 23 of 36
Further, Falta has informed that three units namely M/s. Kalpana Industries (India) Ltd., M/s.
Alps Overseas Pvt. Ltd. and M/s. Nara Exim Pvt. Ltd. have not been granted renewal of LoA as they
are not fulfilling of all the three terms and conditions.

Report by Noida, SEZ: NSEZ have one plastic recycling unit namely M/s. Plastic Processors &
Exporter Pvt. Ltd., the details related to BoA decision vis-à-vis details of the unit are as under:

Conditions mentioned by BOA Corresponding details of Units


for renewal of LoA

1. Units should have been Unit was lying non-functional and has not carried out any production
functional and carried out during the stipulated period of 18 months (i.e. 27th January, 2021 to
at least some production 26th July, 2022).
during the stipulated
period of 18 months (i.e.
27th January, 2021 to 26th
July, 2022)

2. Units should have made at Performance of the unit during 2020-21, 2021-22 as per submitted
least some exports during APRs are as under:
the stipulated period of 18
months (i.e. 27th January, In Rs. Lakhs.
th
2021 to 26 July, 2022).
Year Export Forex NFE Earning
outgo
Physical Supplies under
Rule 53A

2020-21 0.00 0.00 0.00 0.00

2021-22 0.00 0.00 0.00 0.00

Further, as per NSDL Data, unit has not made any export during 2022-
23 (up to 26/07/2022)

3. Units shall undertake not to Unit has submitted an undertaking not to carry out any DTA sales till
carry out any DTA Sales till they they fulfil the shortfall of NFE and Export obligations.
fulfil the shortfall of NFE and
export obligations for the period
upto their period of expiry of
validity i.e. 26th August, 2022.

3. From the above, it may be noted that although the unit has undertaken not to carry out any
DTA sales till they fulfil the shortfall of NFE and export obligations for the period up to their period
of expiry of validity i.e. 26th August 2022, unit has not fulfilled other two conditions i.e. unit is
neither functional nor has made any exports during the stipulated period of 18 months (i.e. 27th
January, 2021 to 26th July, 2022).

Page 24 of 36
3.1 Meanwhile, the unit vide its letter dated 23/11/2022 (copy enclosed) has stated that as their unit
stood non-operational due to accidental fire in 2019, their application for renewal of LOA stood
deficient as a result. However, they stressed on the fact that they had not closed operations at their
unit on their own volition. Due to an unforeseen accident, which razed their manufacturing unit to the
ground, they suffered huge financial loss amounting to Rs. 4 crores approx and that to invest
substantially and reopen their unit again, they had ensured long term stability, which the Board, has
not finally allowed to operational units.

3.2 Unit has further stated that such conditions laid down by the BOA was apparently with a view
that the units which had ceased manufacturing activities on their own volition would not be inclined
to comply with the strict compliances. However, in their case, they did not stop production on their
own volition but for the accidental devastating fire incident discussed above. Unit has further stated
that they are very keen on resuming operations and fulfilling all statutory obligations with long term
stability and growth and requested to grant them extension of validity of LOA.

3.3 Moreover, DC had given a personal hearing to Mr Mukesh Tandon, General Manager on
15.12.2022 wherein the latter indicated that they require a large capital expenditure of around Rs 12.5
crores to restart the unit which had been devastated due to the fire. Hence, they wanted a longer
period of LOA so as to have adequate comfort for recovery of this investment. They were targeting
some specific markets like Spain, Netherlands and UAE. Mr Tandon also stated that they would do
around 50% physical exports, 15% deemed exports and the rest as DTA sales. They were also
exploring getting into a new variety of granules which are used for making water pipes.
4. NSEZ has stated that BOA while deliberating the matter was of the view that if the units have
demonstrated their intent to comply with the obligations and have fallen short despite their best
efforts, it is appropriate to give one more chance to fulfil their obligations rather than to close them
abruptly on account of their shortfall.

5. In the instant case, the unit has requested to grant them a long term extension of validity of
LOA in view of the following:

i. it could not make any production/ export due to the fact that there was a fire incident in the
unit's premises in 2019;
ii. in view of the devastation, it would need to make a significant capital investment to reopen
their unit again;
iii. Nearly half of their exports would be physical with a focus on the European and UAE
markets. The rest would comprise deemed exports and DTA sales.
iv. They would explore a new type of granule for making water pipes.
v. They are very keen on resuming operations and fulfilling all statutory obligations with long
term stability and growth.

NSEZ has submitted the above facts along with representation of unit for the consideration of the
BOA.
113.8: Miscellaneous cases (seven proposals)

113.8(i) Request of M/s. Reliance Industries Limited (DTA unit) for granting permission
for laying of underground utility pipelines (appx. length 2.2 km) and power cable (appx.
length 2.5 km) through the Reliance Jamnagar SEZ

Page 25 of 36
M/s. Reliance Industries Limited, vide their letter dated 21.09.2022, have requested to grant
permission for laying of underground utility pipelines (appx. length 2.2 km) and power cable (appx.
length 2.5 km) which will pass through Reliance Jamnagar SEZ.

In the letter, they point out that in line with our national commitments to reduce carbon
footprint and reduce global warming, they have planned massive new investments in the whole
spectrum of 'new energy' / 'renewable energy' sector at Jamnagar. These new factories are to be set
up in the land available with them, located adjacent to the north boundary of the existing SEZ at
Jamnagar. Their existing factories and other industrial infrastructure of the Company in DTA at
Jamnagar are located adjacent to the south boundary of the SEZ. As per their letter, they would
need to supply certain necessary utilities [Nitrogen / Hydrogen / Natural Gas] and power from their
existing DTA facilities [south of SEZ] to the new factories to be established in north of the SEZ, to
optimise their investments. As per them, the safest and most economical way is to carry these
pipelines / cables, under-ground through the SEZ. In this context, they further undertake that:

i. These pipelines and cables, laid underground, would not cause any hindrance or movement
restrictions within SEZ, impacting its operations in any adverse manner.
ii. The proposed pipelines are fully welded and laid underground with no possibility of any
interconnection with any SEZ facilities; and
iii. They undertake not to take any SEZ benefits for laying of these pipelines / power cables
passing through SEZ.

They have also pointed out that the Government has granted similar permissions in past also
to help investment in the country.

Reliance Jamnagar SEZ Area (Developer) & M/s. Reliance Industries Limited (SEZ Unit)
have also submitted their no objection certificate for the said work of laying of utility pipelines and
power cable. As per their submission, it will not pose any kind of hindrances to their existing
activities.

DC’s observation: To examine their request, a site visit was conducted. Based on the site visit
report, the submissions made by the Company and noting that similar permissions have been
considered by BOA in past and to facilitate fresh investments in renewable energy sector, the
proposal for laying of underground utility pipelines (appx. length 2.2 km) and underground power
cable (appx. length 2.5 km), through the SEZ, is recommended to the Board of Approval for
consideration, subject to the following conditions:

i. The laying of these pipelines / cables would not cause any restrictions / hindrances to the free
movement within SEZ and
ii. M/s Reliance Industries Limited does not intend to claim any duty exception from Authority
of SEZ for the pipeline laid for raw material transmission for this underground pipelines and
cables project.
iii. M/s Reliance Industries Limited has also given an undertaking to follow all the statutory
Rules & Regulations.

Recommendation by DC, Jamnagar SEZ:

DC has recommended the proposal to the Board of Approval for consideration.

Page 26 of 36
113.8(ii) Request of M/s. Estancia IT Park Private Limited, an IT/ITES SEZ at
Vallanchery Village, Chengalpet District, Tamil Nadu for approval for Dual use of
Infrastructure by the SEZ and DTA entities in the Non-Processing area of SEZ.

M/s. Estancia IT Park Private Limited–SEZ, Developer having LoA dated 25.10.2006 has
requested approval for dual use of Infrastructure (Hospital) by the SEZ and DTA entities in the Non-
Processing area.

The Developer has currently having 15.6943 hectares of Notified area in the Zone. Out of
which 1.2343 hectares was demarcated as a Non-Processing Zone. Out of the 1.2343 hectares of Non
Processing area, they have already constructed a school building in 0.6556 hectares on the
demarcated Non-Processing area and leasing out the same to Vidya Mandir on 29.05.2020. Now,
they requested approval for the proposed construction of a hospital for the dual use by SEZ and DTA
entities in an area of 0.2901 hectares out of 0.5787 hectares of demarcated Non-Processing area
which is to be leased-out.

Rule position: In terms of Rule 11A (1) and 11A (3) of SEZ Rules, 2006 regarding Approval for Dual
use of Infrastructure by SEZ and DTA entities in the Non-Processing Zone:-

(1)Where the social or commercial infrastructure and other facilities are permitted to be used by both
the Special Economic Zone and Domestic Tariff Area entities: No exemptions, concessions or
drawback shall be admissible for creation of such infrastructure. The Customs duty, Central Excise
duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and
Services Tax and such other Central levies and tax benefits already availed for creation of such
infrastructure shall be refunded by the Developer in full, without interest.

However, in cases of short payment of the amount refundable to the Government on account of
dual use permission, interest will have to be paid at the rate of fifteen per cent per annum from the
day the said amount becomes payable to the date of actual payment. Utilisation of SEZ land shall
be subject to following conditions:
(a) the land is to be put to only such use which is as per the regulations of the concerned State
Government or local bodies;
(b) if any exemption or refund has been taken from State or local taxes like stamp duty 47[State
Goods and Services Tax,], change of land uses, etc., the same shall be refunded back to State
Government or local authorities and a certificate to this effect shall be produced from the
concerned authorities;
(c) No Objection Certificate (NOC) from the concerned State Government shall be produced
before. the consideration of the request by Board of Approval (BoA). State Government may
issue No Objection Certificate (NOC) taking into consideration (a) and (b) above.

(3)The Department of Commerce has provided the following norms with respect to areas to be
earmarked for residential, commercial and other social facilities:-
(a) The Developer or Co-developer shall submit an application in the format as specified by
the Central Government to the Development Commissioner indicating therein the portion of
the non-processing area where social or commercial infrastructure and other facilities are
proposed to be used by both Special Economic Zone and Domestic Tariff Area entities and
the said application shall be accompanied with a copy of the Infrastructure Plan and No
Objection Certificate from the concerned State Government and supporting documents.
(b) The Development Commissioner shall forward the said application to the Board of
Approval (BoA) for approval.

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(c) The area restrictions for duty paid dual use non-processing area in the Special Economic
Zones shall be as follows:
(i) Housing - not more than twenty-five per cent of non-processing area;
(ii)Commercial- not more than ten per cent of non-processing area;
(iii)Open area and circulation area-not less than forty-five per cent of non-processing
area;
(iv)Social and institutional infrastructure including schools, colleges, socio-cultural
centres, training institutes, banks, post office, etc., in the remaining area.
(d) Floor Area Ratio or Floor Space Index shall conform to the norms of the concerned local
authorities.
(e) No sale shall be permitted of such duty paid dual use infrastructure in the non-processing
area and only lease hold rights can devolve upon the users or transferees of the said dual use
duty paid infrastructure in Non Processing Area of Special Economic Zones; and
(f) Any other conditions as may be specified by the Department of Commerce or Board of
Approval.

In terms of above mentioned Rules, the Developer has submitted their application along with their
Project report and NoC from the State Government of Tamil Nadu for the proposed construction of
Infrastructure (Hospital) in the Non-processing area for the dual use.

Further, as regards area restrictions, Out of total Non-Processing area of 1.2343 hectares, the
Developer has already used 0.6556 hectares. Now, the Developer has proposed for construction of a
hospital for the dual use by SEZ and DTA entities in an area of 0.2901 hectares out of 0.5787
hectares remaining Non-Processing area.

Recommendation by DC, MEPZ:

DC has recommended the proposal for approval for construction of Infrastructure (Hospital)
for dual use by the SEZ and DTA entities in an area of 0.2901 hectares out of 0.5787 hectares of
demarcated Non-Processing area which is to be leased-out, for its consideration by the BoA.

113.8(iii) Request of M/s. Savvy ATS Realty LLP, Ahmedabad a Co-Developer in Multi
Services Special Economic Zone at Village Ratanpur, District Gandhinagar, Gujarat,
developed by M/s. GIFT SEZ Limited for approval of an additional area admeasuring of 2385
square meters.

M/s. Savvy ATS Realty LLP was approved and granted Co-Developer status on 08.02.2022
for construction development, maintenance and operation of commercial building over an area
admeasuring 4461 square meters and additional area of 2385 square meters; within M/s. GIFT SEZ
Limited vide letter dated 17.08.2022.

Now, M/s. Savvy ATS Realty LLP has sought an approval as a Co-Developer in GIFT-multi-
services–SEZ, Gandhinagar, Gujarat, for construction and development maintenance and operation of
commercial building for an additional area of 1355 square meters (0.1355 hectares) within GIFT-
SEZ processing area. The applicant proposes to build office spaces over this land area for the
approved SEZ units to undertake authorized operations. The said application is accompanied by Co-
developer’s agreement and Provisional Letter of Allotment from the Developer M/s. GIFT SEZ Ltd.
for development of office spaces.

Page 28 of 36
DC has informed that since, the GIFT-multi-services SEZ, Gandhinagar is functional with
over 400 broad sector services SEZ units approved including the financial services units of Banks,
Insurance companies, Stock market entities, related units aviation products/services leasing
companies, other ancillary services units, and upcoming areas of business (like Bullion) exchanges,
maritime services units, which requires additional built-up area/premises for such approved and
upcoming SEZ units.

Recommendation by DC, GIFT SEZ:


DC, GIFT SEZ has recommended the proposal of M/s. Savvy ATS Realty LLP, as a Co-
Developer, for construction of commercial building over an additional land area admeasuring 1355
square meters in the above notified SEZ, subject to approval by the Board of Approval.

113.8(iv) Request of the developer M/s. GIFT SEZ Limited, Gandhinagar, Gujarat for
Revision of existing demarcated area of GIFT-SEZ, Gandhinagar.

M/s. GIFT SEZ Limited, Gandhinagar, was granted LoA on 07-01-2008, for setting-up sector
specific SEZ for multi-services at Villages Ratanpur and Phiropur, District Gandhinagar, Gujarat, and
notified on 18-08-2011, over an area of 105-43-86 hectares.

Earlier, on the request of the Developer M/s. GIFT SEZ Limited, the Development
Commissioner had ordered demarcation vide Order dated 26-11-2015 of the notified area as required
under Rule-11 of the SEZ Rules, 2006, details as under:-

Processing Area demarcated 61.1829 hectares


Non Processing Area demarcated 44.2557 hectares
Total notified area 105.4386 hectares

Later, the Developer M/s. GIFT SEZ Limited vide the application dated 01-11-2021, and
subsequent letter dated 19-01-2022 has sought revision of the above demarcation and creation of
dual use area in the Non-processing area to build housing units within the SEZ area in order to boost
Walk-to-Work. Accordingly, the Developer M/s. GIFT SEZ Limited has applied for revision of the
demarcation and bifurcation of non-processing area for dual use of the notified area of SEZ as
under:-

A. Revision of notified area of SEZ applied for:-

Processing Area demarcation 65.1897 hectares


Non Processing Area demarcation 40.2489 hectares
Total notified area 105.4386 hectares

B. Bifurcation of non-processing area applied for:-

Exclusive for SEZ entities (use) 14.4136 hectares


Dual use 25.8353 hectares
Total Non-Processing Area demarcation 40.2489 hectares
The proposal of the Developer, M/s. GIFT SEZ Limited at Para-3 above was recommended
by this office, and the same was put-up before the Board of Approval for SEZs in its 108th meeting

Page 29 of 36
held on 27-01-2022. The said proposal was approved by BoA in its 10th meeting, approval letter
issued vide DoC’s letter dated 08-02-2022.

II) Revision of the existing demarcated area of GIFT-SEZ:-

Now, the Developer, M/s. GIFT SEZ Limited vide their letter dated 27-11-2022 has proposed
the following changes/revisions in the demarcation of SEZ area to accommodate the proposed
‘Bullion Refinery’ in the processing area:-

A. Proposed revision of notified area demarcation of SEZ applied for:-

Processing Area demarcation 70.7977 hectares


Non Processing Area demarcation 34.6409 hectares
Total notified area 105.4386 hectares

B. Proposed bifurcation of non-processing area applied for:-

Exclusive for SEZ entities (use) 14.5604 hectares


Dual use 20.0805 hectares
Total Non-Processing Area demarcation 34.6409 hectares

In terms of Rule-11 (1) of the SEZ Rules, 2006, the Development Commissioner has the
powers to demarcate the SEZ area, and in respect of dual-use area under Rule-11A, the powers are
with the BoA.

Recommendation by DC:

DC, KASEZ has recommended the request of the Developer M/s. GIFT SEZ Limited for
revision of the existing demarcated area of SEZ and bifurcation of non-processing area for approval
by the Board of Approval subject to full compliance of Rule-11A of the SEZ Rules, 2006.

113.8(v) Request of M/s. GIFT SEZ Limited for construction of Boundary wall between
Processing Area, Non-processing Area – SEZ exclusive use and Non-processing area – dual use
at GIFT-Multi Services SEZ at Ratanpur, District Gandhinagar, Gujarat.

M/s. GIFT SEZ Limited, Gandhinagar was granted formal approval for setting-up sector
specific SEZ for multi-services on 7th January, 2008 and notified vide Notification No. S.O. 1910 (E)
dated 18th August, 2011 over an area of 105.4386 hectares.

Thereafter, the developer had sought approval for creation of dual use area over 25.8353
hectares in the non-processing area of the notified SEZ. The said proposal was approved by the
Board of Approval in its 108th meeting held on 27th January, 2022 under Rule 11A of the SEZ
Rules, 2006.

Thereafter, the Developer, M/s. GIFT SEZ Limited, had sought approval for construction of
Boundary wall, i.e. Chain Link Fencing with concertina wire between Processing Area, Non-
Processing Area – SEZ exclusive portion and the approval Non-Processing Area – Dual Use.

Page 30 of 36
The Board of Approval for SEZs in its 112th meeting, held on 29-10-2022, approved the said
proposal to set-up the chain link fencing plus 0.60 meter concertina razor wire between processing
area and non-processing area (SEZ exclusive area and dual use area), provided that in case of any
manufacturing unit or service units involving supply of goods is permitted to be set up in the zone,
the Development Commissioner had to apprise the same to the Board of Approval. Gist of the
discussions in BoA meeting was that if any manufacturing units are existing/ proposed to be
allowed in Gift SEZ, then a rethink would be required on this issue.

Upon taking up the matter further with the developer, it has been observed that there is
manufacturing/trading activity proposed in the SEZ. As a result decision taken by BoA has been put
on hold and developer intimated.

M/s. GIFT SEZ Limited have now vide letter dated 14.12.2022 has requested to allow them to
have a Boundary Wall of chain link fencing plus 0.60 meter concertina razor wire keeping in view of
the following :

a. They are in the final stage of discussions with the “India Bullion and Jewellery Association
Ltd” (IBJA) for setting up a world-class Bullion Refinery in GIFT SEZ and most likely it will
come up in the SEZ in near future.

b. 5 Gem & Jewellery manufacturing entities have already been allowed within the SEZ, though
un-operational as of now.
c. The 112th Unit Approval Committee meeting had approved 3 trading entities.

In this regard, DC has stated that GIFT being an International Financial Services Centre,
needs to have world-class infrastructure with eye-catching landscapes and aesthetics to attract global
investors and talent pool for creating a world-class city with an elegant ecosystem. A concrete
boundary wall would make it a walled city and completely defeat the purpose for which it has
been set up.

In view of the above, it has been requested by the developer that the Board may consider their
case favourably by allowing them to install:

a. A Dense Chain Link Fencing with Concertina Wire


b. CCTV Cameras at short distances along the boundary wall to enable 24 X 7 live monitoring
c. Adequate number of security guards manning the entire stretch of the boundary walls of SEZ.

Since, the proposal of the Developer is not as per Rule 11(2) of SEZ Rules, 2005 the same
needs to be put-up before the Board of Approval for its consideration. Even though the request is
not covered under extant SEZ Act/Rules, there is a merit in the request of the developer and
they are willing to put all necessary security arrangements such as CCTV cameras and security
guards in case they are allowed to construct chain link fencing as requested.

It may further be noted that Dual use Area as is being requested by the Developer in Gift SEZ
is probably not there in any other SEZ.

KASEZ stated that if required, an opportunity of Personal Hearing may also be given to the
developer in the BoA to explain their request further.

Rule position: In terms of rule 11(2) of the SEZ Rules, 2006;

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“The processing area and Free Trade and Warehousing Zone shall have specified
entry and exit points and be fully secured by taking such measures as approved by the Board
of Approval.

Provided that in case of a Special Economic Zone for information technology or


information technology enabled services or electronic hardware or biotechnology , the
Development Commissioner shall approve such measures and inform the Board accordingly:

Provided further that in case the developer proposes to create two hundred and forty
centimeter high wall with top sixty centimeter being barbed wire fencing and single entry and
exit point, no separate approval shall be required under this sub-rule.”

Recommendation by DC;

DC, KASEZ has recommended the proposal for consideration of the BoA.

113.8(vi) Request for renewal of Letter of Approvals of M/s Ambika Scrap Recycling Pvt. Ltd.
for their plastic recycling and metal scrap recycling units in KASEZ.

M/s Ambika Scrap Recycling Pvt. Ltd. was granted two Letters of Approvals for setting up of
unit in KASEZ as per the following details:

Business Activity Metal Scrap Recycling Unit Plastic Recycling Unit


Date of LOA 20.10.1994 10.03.1998
Annual capacity 18000 MT 8000 MT
Commencement of
15.03.1996 No commencement of activity
activity
The unit started its activity of metal
scrap recycling and cleared a total of
1752.011 MTs of Silicon Scrap
Details of activity valued at Rs.85,20,681/- during the
Nil
performed period from 01.04.1996 to
31.03.2001. After expiry of LoA on
31.10.2005 no records of any activity
by the unit are found.
At the time of setting up of unit, they
had proposed to make an investment
of Rs.25 lakhs. As per the APR
submitted by the unit:
F.Y. Amt invested
1995-96 Rs.2.93 lakhs
Investment made No such information
(indigenous
capital goods)
2001-02 Rs.6.21 lakhs
(indigenous
capital goods)
After 2001, the unit has not made any

Page 32 of 36
new investment in the said project as
the unit had not carried out any
commercial activity thereafter due to
heavy cyclone in 1998 and earthquake
in 2001 leading to destruction of their
building and material etc.
The unit proposes to invest Rs.10 The unit proposes to invest Rs. 4
crore for plant and machinery for their crores for plant and machinery
metal recycling plant and their annual and their annual capacity of
capacity of production of metal scrap production of plastic will be
will be 54000 MT. From all type of 8,000 MT. From the plastic
Proposed Investment metal scrap i.e., non-ferrous, ferrous, industrial waste as raw materials,
all type of used cables, all type of they will produce agglomerates
mixed metals they will produce brass, and the same will be sold to
copper, aluminium Etc. and the same export units or to manufacturers
will be either exported directly or will of agricultural pipes and other
be sold to the export units. products.
Proposed Employment 1500 skilled and unskilled workers 500 skilled and unskilled workers
Proposed NFE (next 5
Rs.7642 lakhs Rs.5642 lakhs
years period)

After passing of several years, the unit had requested for revival of their unit condoning
inactive years which was due to the reason of natural calamity and problems to the then existing
directors. The Unit has also undertaken that they will pay all the government dues before issuance of
their (renewed) LoA.

Rule position:
As per Rule 18(4) of the SEZ Rules, no proposal shall be considered for recycling of plastic
scrap or waste and import of other used goods for recycling provided that extension of Letter of
Approval for an existing unit shall be decided by the Board.

Rule 19(5) of the SEZ Rules stipulates that if the unit has not commenced production or
service activity within the validity period or the extended validity period under sub-rule (4), the
Letter of Approval shall be deemed to have been lapsed with effect from the date on which its
validity expired.

Rule 19(6A) (1) of the said rules, stipulates that the units which intend to renew the validity
of Letter of Approval shall submit, before two months from the date of expiry of the Letter of
Approval, the completed application in form F1 along with requisite document, to the Development
Commissioner, duly signed by the proprietor or managing partner or if it is a company, by the
Managing Director or the Director(s) or any person who has or have been duly authorized for this
purpose by a resolution of the Board of Directors of the company. In terms of clause (2) of the said
sub-rule, in case of non-compliance of the procedures specified in clause (1), the Letter of Approval
shall not be considered for renewal.

Decision of the Board of Approval:

Page 33 of 36
The matter was placed before the Board of Approval in its 110th meeting held on 26.05.2022,
wherein, the Board noted the following:
i. Shed no.394 was allotted to M/s Ambika Scrap Recycling Pvt. Ltd. However, due to non-
activity the unit was evicted and the said shed was allotted to another unit of KASEZ i.e. M/s
Kandla Exim Pvt. Ltd.
ii. The validity of the LoA of metal recycling unit had expired on 31.10.2005 while the plastic
recycling unit did not even commence its activity while the LoA was granted on 10.03.1998.
iii. Neither the unit and nor the LoAs are in existence as on date.
iv. The proposal is not tenable in terms of Rule 19(5)and Rule 19(6A) (1) & (2) of the SEZ
Rules, 2006.
The Board, after deliberations, directed DC, KASEZ to initiate the process of exit of the unit.
Request and submissions of the unit in their representation dated 06.07.2022:
The unit has requested for re-consideration of their case on the following grounds -

i. That the Shed number is wrongly mentioned as 394 whereas the actual no. of the Shed is
Shed no. 294, Sector no. III, KFTZ.
ii. That from inception till they stopped operations in 2004 due to economic and other internal
problems they had achieved positive NFE as per policy applicable at that time.
iii. The shed was given by their unit on sharing basis to M/s Jindal International with the due
permission of the Development Commissioner, KASEZ on the request of Development
Commissioner, KASEZ as there was an ongoing case pending in VAT Department, Gujarat
and they were not able to run the business as the VAT Department had sealed their Books of
Account and frozen their Bank account. Further, M/s Jindal International was willing to take
the shed no. 294 on sharing basis from them as their allotted sheds no. 295 & 296 had caught
fire and they were unable to fulfill their supply contracts with international and domestic
buyers.
iv. They also paid the outstanding rent of Rs. 8.94 lakhs as outstanding as on 31.03.2008 in
respect of shed 294.
v. A severe cyclone hit Kandla in 1998 and caused major disruption for their business and huge
financial loss from which they were unable to recover. Further, the VAT Department started a
case against their unit and the Gujarat VAT Tribunal ruled in their favour in January, 2016.
The VAT Department went in further appeal to the Hon’ble High Court of Gujarat and the
Hon’ble High Court was pleased to rule in their favour vide in judgment delivered in the year
2019 in Tax Appeal No. 238 of 2018.
vi. Major disruptions were caused by the severe cyclone which hit Kutch region of Gujarat in
1998 and the VAT case foisted on them which has ultimately gone in their favour. Therefore,
the disruptions caused to their business were due to circumstances beyond their control.
vii. The provisions of Rule 19(5) is not applicable in their case as their unit had already gone into
operation and the operations had to be stopped thereafter due to the circumstances as
explained above whereas Rule 19(5) applies only to those units which have not commenced
production.

As per information received from KASEZ in the past the position is as follows:

i. Shed no. 324 & 325 was allotted to M/s R.R. Vibrant. Plot no. 419/A was allotted to M/s
Anita Exports. Shed no. 394 was allotted to M/s Ambika Scrap Recycling. However, due to

Page 34 of 36
non-activity the unit was evicted and the said Shed was allotted to other unit of KASEZ i.e.
M/s Kandla Exim Pvt. Ltd.
ii. M/s Ambika Scrap Recycling was NFE negative to the tune of Rs.81.67 lakhs during the
period 1996-2001 and SCN dated 14.03.2002 was issued to the unit.
iii. The plastic recycling unit did not commence operations and shall hence be hit by Rule 19(5).
In so far as non consideration of request for renewal of metal scrap recycling unit, the same
shall be governed under Rule 19(6A) (1) & (2).

The proposal was again considered in the111th BOA meeting held on 28th July, 2022 and the
Board decided to revert the matter to DC, KASEZ for further examination.
DC, KASEZ vide letter dated 06.1.2023 has submitted that there are no new facts information
available with them apart from what has already been stated vide KASEZ’s previous letters dated
15.12.2021 and 21.10.2022 on the subject matter:
With regard to the supposed expenditure made by M/s. Ambika Scrap Recycling Pvt. Ltd. on
capital and machinery as stated by the unit's representative in his meeting with the Commerce
Secretary, it is to submit that there are no records available with KASEZ pertaining to import/ DTA
procurement of capital goods or machinery. Further, till date, no documentary evidence with regard
capital investment has been received from the said unit. However, the unit vide their letter dated
26.08.2021 submitted a copy of offer of financial assistance of Rs. 10.00 Cr issued by Punjab
National Bank.
The request is placed before the Board for its consideration.

113.8(vii) Request of M/s Motan Enterprises, a unit in KASEZ SEZ for renewal of LoA of their
trading unit.
M/s Motan Enterprise, KASEZ was granted Letter of Approval on 09.08.2001 for trading
activity with initial validity of one year upto 08.08.2002. The unit was allotted Shed No. 74 (CPWD
Type), Sector – I, KASEZ by the Estate Management Section vide Allotment Order dated
27.09.2001.

Further, Shed No. 29 (CPWD Type), Sector – I, KASEZ was allotted to M/s. Motan
Enterprise in lieu of Shed No. 74, which was required by the Administration for demolition to enable
this office to demolish block of 4 sheds. Later Shed No. 29 was also surrendered by the unit vide
letter dated 06.12.2006 and taken over by the Administration for demolition.

M/s. Motan Enterprise vide its letter dated 16.09.2021 requested for renewal of their LoA
dated 09.08.2001.

The Unit Approval Committee in its 173rd meeting held on 30.12.2021 had observed that the
list of such units given in the Agenda is not exhaustive since the Kandla SEZ is a very old SEZ set up
in the year 1965 and therefore there may be several LoAs which have expired but have not been
explicitly cancelled. In view of the same, the Approval Committee after due deliberations decided
that LOAs of all units including the ones listed in their agenda, which have expired on or before
31.12.2020 and who have not applied for renewal, except those where cases are pending in any court
of law/tribunal etc., will be deemed to have been cancelled and the Development Commissioner shall
not consider the same for renewal in terms of Rule 19 (6A)(2) of the SEZ Rules 2006.

Page 35 of 36
Further, the BoA in its 108th meeting held on 27.01.2022 had directed all Development
Commissioners to make a list of such units in SEZs under their jurisdiction whose LoAs have expired
for two years or more and to take necessary action for their cancellation of LoAs as well as exit from
SEZs by following the due process in this regard.

As informed by KASEZ, M/s. Motan Enterprise vide their letter dated 22.02.2022 had
submitted a new application for setting up Trading Unit in KASEZ and the UAC in its 176 th meeting
held on 08.03.2022 has approved the proposal of the unit and accordingly Letter of Approval dated
09.03.2022 for trading activity has been issued to the unit.

Meanwhile, the company has vide their representation dated 06.07.2022 stated that they do
not fall under Rule 19(5) & Rule 19(6A) (1) &(2) to the SEZ Rules, 2006 because VAT return and
Income Tax Return has already been filed regularly in the past and still filing procedure are active.
That in the year 2007, their Shed no. 74, CPWD Type was taken by the Authority for the purpose of
shed re-development and also agreed to return it back to them which is not yet been handed over to
them. For the same reason they do not fall under Rule 19(5) & Rule 19 (6A)(1) &(2) to the SEZ
Rules, 2006 therefore they request for renewal of their LoA.

The unit submits that they have also written to the Development Commissioner, KASEZ in
the year 2009, 2010, 2012, 2015, 2017, 2019 & 2021. That in the old days they were not financially
capable, but in current situation they are financially capable because of MSME schemes introduced
by the government.

The matter was placed before the 111th BOA meeting held on 28th July, 2022 and the Board
noted that M/s Motan Enterprises has been granted a fresh LoA on 09.03.2022 for trading activity.
The Board, did not find any merit on the request for renewal of LoA granted to the unit on
09.08.2001.

DC, KASEZ vide letter dated 06.01.2023 has submitted that they have no additional
facts/information are available with them. Further, till date, no documentary evidence with regard
capital investment has been received from the said unit.

The request is placed before the Board for its consideration.

*****

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