Minutes of Meeting held on 13-08-12 - Nsez.gov.in

<strong>Minutes</strong> <strong>of</strong> <strong>Meeting</strong> <strong>of</strong> Approval Committee, NSEZdated 13/08/2012Page 1 <strong>of</strong>5<strong>Minutes</strong> <strong>of</strong> the <strong>Meeting</strong> <strong>of</strong> the Approval Committee <strong>of</strong> Noida SEZ <strong>held</strong> on 13/08/2012 at11:30 AM in the Conference Hall <strong>of</strong>NSEZ, Noida.The meeting <strong>of</strong> the Approval Committee, NSEZ, was chaired by Shri e.P.S. Bakshi,Development Commissioner, Noida SEZ. The following Members <strong>of</strong> the Approval Committeewere present in the <strong>Meeting</strong>:l. Shri Rakesh Kumar, Dy. Development Commissioner, NSEZ, Noida;2. Shri N.K. Singh, Manager, D.Le., Sector-20, Noida, Dist: G.B. Nagar (Representative<strong>of</strong> Principal Secretary, Industries, Govt. <strong>of</strong>U.P., Lucknow)3. Shri N.K. Kapoor, Associate Architect, Noida Authority (representative <strong>of</strong> the CEO,NaIDA).4. Shri Vinay Kumar, Income Tax Officer, Noida.Besides, Shri Sharad Srivastav, Deputy Commissioner (Customs), Shri Paras Nath, Regional.Officer, UPPCB, Shri Utsav Sharma, A.E.E., UPPCB, Noida, Shri B.B. Bhatia, JuniorEngineer, UPPCL and Shri M.N.Sukole, Astt. DC, NSEZ, also attended the <strong>Meeting</strong>.GIST OF THE MEETING:Ratification <strong>of</strong> <strong>Minutes</strong> <strong>of</strong> last <strong>Meeting</strong> <strong>of</strong> the Approval Committee:The Approval Committee ratified the minutes <strong>of</strong> its <strong>Meeting</strong> <strong>held</strong> on 25/0712012.,Decisions on Proposals1. Application <strong>of</strong> Mis. Ramtex Overseas Corp. for setting up a unit in Noida SEZ formanufacture <strong>of</strong> Bed Linen, Table Linen, and Kitchen Linen.The Proprietor Shri Raman Kapur presented the proposal and informed the Committee thathe had good number <strong>of</strong> export orders and his manufacturing units at Panipat and Karur weredoing well and last year his turnover was about Rs. 38 Crore. As regards space, the applicantwas informed that space equivalent to 5 SDFs would not be available for allotment. In response,the applicant assured that he would make arrangement<strong>of</strong> space on his own after issue <strong>of</strong> LOA.Keeping in view good prospects <strong>of</strong> employment generation and exports, the Committeeapproved the proposal subject to making <strong>of</strong> arrangement <strong>of</strong> space by the applicant.2. Application <strong>of</strong> MI s Samsung Overseas Ltd. for setting up a unit in NSEZ for IT andITES.As no representative appeared before the Committee, consideration <strong>of</strong> the proposal wasl~to the next meeting.

<strong>Minutes</strong> <strong>of</strong> <strong>Meeting</strong> <strong>of</strong> Approval Committee, NSEZdated 13/08/2012Page 2 <strong>of</strong>53. Application <strong>of</strong> Mis. Open IT Methods Pvt. Ltd. for setting up a unit in Noida SEZfor IT lITES.Shri Nilesh Sudon, Director <strong>of</strong> the applicant Co. appeared and explained about hisexpertise in the field. The Committee satisfied with the source <strong>of</strong> finances <strong>of</strong> the promoters toimplement the project on the basis <strong>of</strong> CA certified net-worth statements in respect <strong>of</strong> promoterdirectorgiven by the applicant. Further, the Committee also confirmed that one <strong>of</strong> thepromoter-director had related experience and the other director had served IAF and successfullyrunning business, although in different field. After due deliberations, the Committee approvedthe proposal subject to availability <strong>of</strong> space. However, pr<strong>of</strong>essional legal and accounting servicesshall not be allowed as per specific stipulationin the SEZ Rules.4. Application <strong>of</strong> MI s Friction Fibre Technologies India Pvt. Ltd. for setting up a unitin NSEZ.The Committee took note <strong>of</strong> individual ITRs <strong>of</strong> the promoter-directors. The Companyrepresentative informed that they would export as well as supply to EOUs. After duedeliberations, the Committee approved the proposal subject to availability <strong>of</strong> space (SDF) atground floor.5. Mis. Corbus India (P) Ltd. - amendment in LOA and review <strong>of</strong> performance.After hearing justification that the unit cannot procure orders for s<strong>of</strong>tware developmentin isolation and services such as s<strong>of</strong>tware application support, business process support andrelated IT lITES services would essentially be provided to the customers, the Committeeallowed inclusion <strong>of</strong> the said services as authorized operations.The Committee also reviewed performance <strong>of</strong> the Unit on the basis <strong>of</strong> APRs <strong>of</strong> the BlockPeriod 2007-2012 and noted Export performanceand NFE achieved by the Unit.6. Mis Rohit International - Review <strong>of</strong> performance.The Committee was informed that the Unit had achieved marginal NFE as per APRssubmitted and there was no clarity whether the Unit's claimldeclaration were to be accepted asthe Unit preferred to revise APR for the year 2008-09. In addition, Customs-NSEZ hinted aboutl~aration <strong>of</strong> import which the unit procured from MMTC. The Committee was also

<strong>Minutes</strong> <strong>of</strong> <strong>Meeting</strong> <strong>of</strong> Approval Committee, NSEZdated 13/08/2012Page 3 <strong>of</strong>5informed that the LOA which was valid up to 11.07.2011 had not been renewed till date due topoor response <strong>of</strong> the unit in submission <strong>of</strong> documents necessary for examination <strong>of</strong> APRs.The Committee decided that all the issues relating to examination <strong>of</strong> APR would be broughtbefore the Committee and, if required, appropriate Show Cause Notice would be issued infuture. However, as per request <strong>of</strong> the Unit, the Committee decided to renew the LOA <strong>of</strong> theUnit but only for authorized operations related to manufacturing, with immediate effect. TheCommittee opined that if the unit desires to carry out only trading then it should shift to SDF,as plots were allotted for manufacturing activity only and the unit utilized the allotted plot foronly trading activity in 4 years out <strong>of</strong> its last five-years' block, which was unacceptable. TheCommittee decided that as the LOA was being renewed for prospective effect, Dy.Commissioner(Customs) may recover duties, if any, for the intervening period for which theLOA was not valid7. Mis Bhartiya Industries - Review <strong>of</strong> performance.As no representative appeared to explain reasons for non-performance, the Committeedeferred the matter to the next meeting.8. Mis. Art Forever - review <strong>of</strong> performance.No representative appeared before the Committee. The Committee decided to issueShow Cause Notice for cancellation <strong>of</strong> LOA and penalty, if any, under the FT(D&R) Act. TheCommittee empowered DC to issue SCN and take further appropriate decision includingcancellation<strong>of</strong> LOA.9. MI s India Craftloom - Review <strong>of</strong> performance.The representative informed that they were not having export orders for their productsand were in the process <strong>of</strong> marketingtheir product overseas. He assured that within a year theywould succeed in obtaining export orders and re-commence operations. In view <strong>of</strong> this, as perthe request <strong>of</strong> the Unit-representative, the Committee decided to watch the unit's performance~~neyear, to be reviewed after one year.

<strong>Minutes</strong> <strong>of</strong> <strong>Meeting</strong> <strong>of</strong> Approval Committee, NSEZdated 13/08/2012Page 4 <strong>of</strong>510. Mis AOV Agro Foods Pvt. Ltd. - Review <strong>of</strong> performance.The Unit representative informed that they had no export orders and therefore with theapproval <strong>of</strong> the Specified Officer, they had transferredcapital goods and wanted to exit from theSEZ. The Committee directed the unit to apply for exit immediately, and also submit "LegalUndertaking for exit in the format <strong>of</strong> Annexure to APPENDIX 14-I-L declaring that the unitwould pay whatever penalties which would be imposed by the DC under FT(DR) Act for nonfulfilment<strong>of</strong> the terms and conditions<strong>of</strong> LOA".11. MI s. Shinpak Overseas Exports-request for continuance <strong>of</strong> sharing permission.The Committee was informed that the proceedings in the matter <strong>of</strong> rnis-declarationagainst MI s. Kohinoor International were in progress at Customs end. In view <strong>of</strong> the case, videletter dated 24.1.2012, all the three units(M/s. Mis. Kohinoor International, Mis. KNK BagsMfg. Co. , and Mis. Shinpak Overseas Export), who had been allowed sharing permission withGanapati overseas at Plot No. 27 and 38, had been informed that their sharing permission hadlapsed and hence treated as 'cancelled' and the units had been requested to shift their operationsfrom the plots with the approval <strong>of</strong> the NSEZ authorities. In the meeting dated 15.2.2012, theUAC extended sharing permission only for 3 months and the units who were working onsharing basis, were expected to get sharing permission to work from any other premises otherthan plot No. 27 and 38.Mis. Shinpak Overseas Exports had requested for extension <strong>of</strong> sharing permission forfurther period <strong>of</strong> one year, due to shortage <strong>of</strong> funds and decline in export orders. No suchrequest from Mis. Kohinoor International had been received. LOA <strong>of</strong> Mis. KNK Bags Mfg.Co. had lapsed on 31.03.2012and no request for extension was received.The Committee decided that since Mis. Ganapati Overseas and Mis. Shinpak OverseasExports were functional units, sharing permission <strong>of</strong> Mis. Shinpak Overseas Export with Mis.Ganpati Overseas at Plot No. 38, NSEZ be continued for further period <strong>of</strong> one year on usualconditions. Separation <strong>of</strong> work places and entry Iexit gates <strong>of</strong> the units shall be done to the\ s,~ti~:Of Customs.L~ ~ [Action: ADC(Estate)[

<strong>Minutes</strong> <strong>of</strong> <strong>Meeting</strong> <strong>of</strong> Approval Committee, NSEZ dated 13/08/2012Page 5 <strong>of</strong>512. Approval <strong>of</strong> Default list <strong>of</strong> services for units in Noida SEZ as per Notification No.40/2012 dated 20.06.2012.The Committee approved the default list <strong>of</strong> services for units in Noida SEZ as perNotification No. 40/2012 dated 20.6.2012 applicable w.e.f. 01.07.2012. The List would bemade available on the Website <strong>of</strong> the Noida SEZ for all NSEZ units. The Units would berequested to apply separately if any unit avails services other than those approved for all unitsin the default list.13. Consideration <strong>of</strong> Requests <strong>of</strong> Units regarding removal <strong>of</strong> condition <strong>of</strong> migration <strong>of</strong>PAN to Noida Address.The Committee was informed that in the past in few <strong>of</strong> the UAC <strong>Meeting</strong> a conditionwas inserted in the LOA that PAN would be migrated to Noida Adress. Since the expectedcompliance would not be legally imposable, the Committee decided to remove the condition <strong>of</strong>migration <strong>of</strong> PAN to Noida Address from the LOAs in which the conditionwas iserted.14. Issue <strong>of</strong> poor supply <strong>of</strong> electricity in the Zone.The issue was discussed with the concerned <strong>of</strong>ficer <strong>of</strong> the UPPCL. The Committeedecided that a letter would be sent by Development Commissioner, NSEZ to MD, UPPCL toimpress upon him the gravity <strong>of</strong> frequent power-cuts being made to the NSEZ and the need <strong>of</strong>uninterrupted power supply to the Special Economic Zone <strong>of</strong> national importance.15. Additional item:Approval <strong>of</strong> Building plan <strong>of</strong> Mis.Noida.Romsons International, at plot No. 148, NSEZ,The Committee, including representative from NaIDA Authority, approved the plan<strong>of</strong> the building <strong>of</strong> Mis. Romsons International at plot No. 148, NSEZ. [Action: ADC(Estate)]The <strong>Meeting</strong> tedwith vote <strong>of</strong> thanks to the Chair(RakeshK~ (C.P .. Ba s i)Deputy Development Commissioner Developmen CommissionerYVft}, L . *****