MANGALORE SPECIAL ECONOMIC ZONE MANGALORE AGENDA-- --AGENDA APPROVAL COMMITTEE MEETING (1 ST OF 2015) DATE : TIME : 11.

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1 MANGALORE SPECIAL ECONOMIC ZONE MANGALORE --AGENDA AGENDA TH APPROVAL COMMITTEE MEETING (1 ST OF 2015) DATE : TIME : AM VENUE: SEZ BHAVAN, WHITEFIELD, BANGALORE-66 1

2 Agenda Enclosed 2

3 The Director (SEZ) Department of Commerce Ministry of Commerce & Industry UdyogBhavan, New Delhi MAILING LIST Shri V.Sraman Jt. Director General of Foreign Trade C&E Wing, 6 th Floor, KendriyaSadan 17 th Main, 2 nd Block, Koramangala, Bangalore Shri M.Subramanyam, IRS Commissioner of Central Excise 7 th Floor, Trade Centre, Bunts Hostel Road, Mangalore Tel.: (P.S), Fax No Smt. Lakshmi HandePuri Commissioner of Income Tax C.R. Building, Attavar, M.G. Road, Mangalore-1 Tel.: (PS) Shri Sanjeev Kumar Jindal Deputy Secretary (IF-1) Ministry of Finance, Govt. of India Jeevan Deep Building, Parliament Street Sansad Marg, New Delhi Shri Gaurav Gupta, IAS Commissioner of Industrial Development & Director of Industries & Commerce Govt. of Karnataka, KhanijaBhavan (South wing) No.49, Race Course Road, Bangalore Shri.Raghuram Managing Director Karnataka UdyogMitra KhanijaBhavan (South wing) No.49, Race Course Road, Bangalore Shri Rajiv Banga Managing Director & CEO Mangalore SEZ Ltd., No-16, Pranava Park, 3rd Floor, Infantry Road, Vasanthnagar Layout Bangalore

4 Agenda for the 28 th Approval Committee Meeting (1 st /2015 series) of Mangalore Special Economic Zone Ltd to be held on at A.M A. Confirmation of the minutes of the 27 th meeting of the Approval Committee of Mangalore Special Economic Zone Ltd (6 th of 2014 series) held on B. Action taken on decisions of previous meeting C. Consideration of applications relating to 1. New Units NIL 2. Approval of List of materials a. Approval of 50% balance quantity of material for Rs.5,03,36, against item No.4 of Ratification letter dated (copy attached) for Supply, laying, testing and commissioning of HT(33KV and 11KV) distribution cables including construction RCC Cable trench and providing internal road illumination within MSEZ Area - Request submitted by MSEZ (developer) vide letter dated b. Approval of list of materials for Construction of Box Culverts for Pipeline Corridor along internal corridor along internal roads of MSEZ - Request vide letter submitted by the Developer, MSEZ. c. Approval of List of materials for Construction of Internal Roads, Drains and Culverts in Pocket 1 & II of MSEZ Package 1 Request submitted vide letter dated d. Approval of List of materials for Construction of Internal Roads, Drains and Culverts in Pocket 1 & II of MSEZ Package 2 Request submitted vide letter dated e. Approval of List of material for Supply, laying, testing and commissioning of HT(33KV and 11KV) distribution cables including construction RCC Cable trench and providing internal road illumination within MSEZ Area - Request submitted by MSEZ (developer) vide letter dated f. Approval of List of materials for providing and fixing electrified Perimeter security system for MSEZ - Request submitted by MSEZ (developer) vide letter dated Approval of List of Services NIL 4. Misc. Approval a) Building Sanction Approval under Single Window Clearance Mechanism for construction of Factory Building/premises Request vide letter dated alongwith 26 Building Plans submitted by the Unit, M/s. JBF petrochemicals Limited, Mangalore, D. Any other matter with the approval of the Chairman/Chairperson 4

5 A. Confirmation of the minutes of the 27 th meeting of the Approval Committee of Mangalore Special Economic Zone Ltd (6 th /2014 series) held on

6 6

7 B: ACTION TAKEN REPORT IN RESPECT OF THE 27 TH MEETING OF THE APPROVAL COMMITTEE (6/2014 SERIES) OF MANGALORE SPECIAL ECONOMIC ZONE LIMITED HELD ON Sl. No. Request letter date Approval Approval for list of materials for Providing 110kv Double circuit XPLE 400 sq.mmcopper cable from 220kv GSS -03 substations of MSEZL and associated Metering arrangement at 220 kv substations situated within MSEZ area. Date of issue of Letter of Approval /other C: Consideration of application relating to: 1. New Units NIL 2. Approval of List of materials a. Approval of 50% balance quantity of material for Rs.5,03,36, against item No.4 of Ratification letter dated (copy attached at Flag A at Page 10)for Supply, laying, testing and commissioning of HT(33KV and 11KV) distribution cables including construction RCC Cable trench and providing internal road illumination within MSEZ Area The Developer, MSEZ, vide letter dated , has drawn the attention of the UAC to the ratification of approval, granted by the Development Commissioner, in its Meeting held on to extent of 50% of the value of Rs.10,05, against item No.4 as per the approval attached at Flag-A. They have now requested to approve balance 50% against this item,i.e. for Rs.5,03,36, Since the developer did not submit the Consumption Certificate issued by the Chartered Engineer, the developer was requested for submitting the same. However, vide letter dated has requested to approve their various requests for approval of lists submitted to this office requesting for more time in submitting the Consumption certificate required by the department. The proposal of the developer is placed before AC for consideration. b. Approval of list of materials for Construction of Box Culverts for Pipeline Corridor along internal corridor along internal roads of MSEZ The developer, MSEZ has requested the above item may be approved based on the CE Certificate submitted with the request. They vide letter dated stated that Consumption Certificate will be produced under preparation and will be submitted shortly. c. Approval of List of materials for Construction of Internal Roads, Drains and Culverts in Pocket 1 & II of MSEZ Package 1. The developer, MSEZ has requested the above item may be 7

8 approved based on the CE Certificate submitted with the request. They vide letter dated stated that Consumption Certificate will be produced under preparation and will be submitted shortly. d. Approval of List of materials for Construction of Internal Roads, Drains and Culverts in Pocket 1 & II of MSEZ Package 2 The developer, MSEZ has requested the above item may be approved based on the CE Certificate submitted with the request. They vide letter dated stated that Consumption Certificate will be produced under preparation and will be submitted shortly. e. Approval of List of material for Supply, laying, testing and commissioning of HT(33KV and 11KV) distribution cables including construction RCC Cable trench and providing internal road illumination within MSEZ Area The developer, MSEZ has requested the above item may be approved based on the CE Certificate submitted with the request. They vide letter dated stated that Consumption Certificate will be produced under preparation and will be submitted shortly. f. Approval of List of materials for providing and fixing electrified Perimeter security system for MSEZ - The developer, MSEZ has requested the above item may be approved based on the CE Certificate submitted with the request. They vide letter dated stated that Consumption Certificate will be produced under preparation and will be submitted shortly. 3. Approval of List of Services NIL 4. Misc. Approval Building Sanction Approval under Single Window Clearance Mechanism for construction of Factory Building/premises Request vide letter dated alongwith 26 Building Plans submitted by the Unit, M/s. JBF petrochemicals Limited, Mangalore, the details of the proposal placed as Annexure I at page 9 D:Any other matter with the approval of the Chairman END BRIEF OF BUILDING PLAN APPROVAL PROPOSAL SUBMITTED BY M/s. JBF Petrochemicals Limited 8

9 M/s. JBF Petrochemicals Limited is SEZ Unit in MSEZ, Mangalore, is holding a LoP No.KA:16:07:MSEZ/2B dated and its extended validity remains upto The Unit vide letter dated has submitted five sets of twenty six Factory Building Plans duly certified by the Chartered Engineer for approval by the UAC under Rule 17 of SEZ Rules, In continuation to the letter dated , the Unit vide letter dated inter alia submitted in this connection, as under: They submitted that they are setting up a Unit in MSEZ for manufacture of Purified Terepthalic Acid (PTA) & Ploy-Ethylene Terephthalate (PET) for which substantial project progress in terms of civil works on all fronts are at an advanced stage that will facilitate erection of main Plant & equipment. They have also started the process of Plan Approval for building the factory buildings/unit premises within the processing area for which they had approached KIADB as envisaged under a Clause in the Lease Deed executed with the MSEZ, which reads as under: Quote 1: that the lessee shall construct the buildings/structures in conformity with the zonal regulations and the bye-laws of the local municipal body, as applicable, and the development guidelines laid down by the lessor in respect of the said plot as described below. Quote:2: the lessee shall follow all applicable laws including the rules laid down by the department of town and country planning and national building code/kiadb in addition to the laws that are applicable to area, the lessor may require that certain additional rules as may be intimated by the authorities to the lessor from time to time be followed by the lessee in MSEZ Unquote: The Unit stated further that according to the above clauses they had approached the KIADB for Factory Building Plan Sanction for which they asked the Unit to pay in advance a 1% under BOCW Act. The unit contented that the provision under the BoCW Act for payment of 1% Sess is wrongly applied (by KIADB) in their case being theirs a SEZ Unit, and all duties, Tax & Levies are exempted for SEZ Unit/Developer from payment as per the SEZ Rule/Act, as amended. They submitted that the MSEZ is in non-regulated area and as such, the appropriate authority is UAC in sanctioning the Building Plan as per Guide Line No.65 circulated vide DoC Letter No.D-1/19/2009-SEZ dated which, inter alia, states;..the authority for approving the buildings may be delegated to the Approval Committee of the Zone headed by the Development commissioner. The Committee will also have nominee of the concerned Department of the State Government to ensure compliance to the Policy of the State Government on the subject. In view of this, the Unit has requested for approval of Building Plan after due process but without insisting for Cess under BoCW Act/Rules as it is not relevant in their case being a SEZ Unit. On examining the request of the Unit and instruction No.65 issued by the DoC it is observed that though the Unit can be covered under BoCW Act it can also be covered under Factories Act. Since SEZ Act exempt the developer and SEZ Unit from payment of duties and levies application of 1% Cess may not be relevant in this case. The matter is placed before the Approval Committee for consideration. 9

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