Final Minutes of 17th BoA Meeting - 30th August, 2007

Draft Minutes of the 17th meeting of the SEZ Board of Approval held th on 30 August 2007 at 10.00 A.M., to consider proposals for setting up of Special Economic Zones

The seventeenth meeting of the SEZ Board of Approval was held on 30.08.2007 at 10.00 A.M. under the Chairmanship of Shri Gopal K. Pillai, Commerce Secretary, Department of Commerce at Conference Room No. 108, Udyog Bhawan, New Delhi to consider proposals for setting up of Special Economic Zones and other miscellaneous requests in respect of notified/approved SEZs. A list of participants is enclosed. (Appendix).

Addressing the Board of Approval members, the Chairman informed that so far formal approvals have been granted for setting up of 366 SEZs out of which 142 have been notified. He informed that over Rs. 46705 crore have been invested in these notified SEZs and that these SEZs are providing direct employment to over 40153 persons. He further informed that after the enactment of the SEZ Act, 2005 in June 2005, additional about 15000 persons got employed in new generation private/state Government SEZs approved prior to the SEZ Act and that exact details in these cases are being worked out.

He informed the representatives of the State Governments that the 60 days period for communicating their recommendations in respect of proposals which were received over 6 months ago, was already over and that in case of non-receipt of recommendations, cancellation letters would be issued to those applicants.
Thereafter, the agenda for the meeting was taken up for discussion.

Main agenda

(A) Decision for Formal Approvals:

Request for setting up of a sector specific SEZ for Multi Services sector at Village Ratanpur and Phirojpur, Gandhinagar District, Gujarat by Gujarat Finance City Development Company Limited -100 hectares (Main agenda - Sl. No. 1):

The Board noted that the Developer was in possession of the land. The State Government had also recommended the proposal. Accordingly, the Board decided to grant formal approval for setting up of a sector specific SEZ for Multi Services sector at Village Ratanpur and Phirojpur, Gandhinagar District, Gujarat by Gujarat Finance City Development Company Limited over an area of 100 hectares.

Request for setting up of a sector specific SEZ for IT sector at National Highway No. 8, Village Kukrola and Sehrewan District Gurgaon, Haryana by DS Realetors Private Limited -56.65 hectares (Main agenda - Sl. No. 4):

The Board noted the Developer was in possession of the land. The State to grant formal approval for setting up of a sector specific SEZ for IT sector at Minutes of the 17th meeting of the SEZ BOA held on 30th August 07

National Highway No. 8, Village Kukrola and Sehrewan District Gurgaon, Haryana by DS Realetors Private Limited over an area of 56.65 hectares.

Request for setting up of a sector specific SEZ for Electronic Hardware including IT/ITES sector at Village Sohna, Tehsil Sohna, Gurgaon, Haryana by Sohna Buildcon Private Limited -10 hectares (Main agenda - Sl. No. 5):

to grant formal approval for setting up of a sector specific SEZ for Electronic Hardware including IT/ITES sector at Village Sohna, Tehsil Sohna, Gurgaon, Haryana by Sohna Buildcon Private Limited over an area of 10 hectares.

Request for setting up of a sector specific SEZ for Agro and Food processing sector at Dimapur - Nagaland by Nagaland Industrial Development Corporation Limited -50 hectares (Main agenda - Sl. No. 6):

to grant formal approval for setting up of a sector specific SEZ for Agro and Food processing sector at Dimapur - Nagaland by Nagaland Industrial Development Corporation Limited over an area of 50 hectares, subject to the condition of obtaining prior security clearance from the Ministry of Home Affairs in case of any foreign company or FDI being proposed in the project.
. 5. Request for setting up of a sector specific SEZ for IT/ITES sector at Mahadevapura K. R. Puram, Bangalore North, Karnataka by Bagmane Construction Private Limited - 12 hectares (Main agenda - Sl. No. 7):

The Board noted the Developer was in possession of the land and the issue of contiguity due to which the proposal was deferred in earlier meetings has also been resolved. The State Government had also recommended the proposal. Accordingly, the Board decided to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Mahadevapura K. R. Puram, Bangalore North, Karnataka by Bagmane Construction Private Limited over an area of 12 hectares.

Request for setting up of a sector specific SEZ for Textiles sector at Village Surangi, Near Silvassa, Dadra and Nagar Haveli by Alok Infrastructure Private Limited – 73.48 hectares (Main agenda – Annexure – II - Sl. No. 1):

to approve the request of the developer for conversion of in-principle approval to formal approval and granted formal approval for setting up of a sector specific SEZ for Textiles sector at Village Surangi, Near Silvassa, Dadra and Nagar Haveli by Alok Infrastructure Private Limited over an area of 73.48 hectares.

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Request for setting up of a sector specific SEZ for IT/ITES sector at Kurukalva Village, Renigunta Mandal, Chittor District, Andhra Pradesh by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) – 32.57 hectares (Supplementary agenda - Sl. No. 1):

to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Kurukalva Village, Renigunta Mandal, Chittor District, Andhra Pradesh by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) over an area of 32.57 hectares.

Request for setting up of a sector specific SEZ for IT sector at Dakhin Kheirpur Under, Bhagwanpur Gram Panchayet, P.S. Kassipore, Dist: 24-Parganas South, West Bengal by Abex Infocom (P) Ltd. – 40 hectares (Supplementary agenda - Sl. No. 2):

Government had also recommended the proposal. The Board noted that the Developer has sought approval for Knowledge Park/IT SEZ. However, since the Developer was in possession of only 40 hectares of land whereas Knowledge Park being a services sector SEZ where 100 ha. Minimum land is stipulated, on the basis of the recommendation of the representative of the State Government, the Board decided to grant formal approval for setting up of a sector specific SEZ for IT sector at Dakhin Kheirpur Under, Bhagwanpur Gram Panchayet, P.S. Kassipore, Dist: 24-Parganas South, West Bengal by Abex Infocom (P) Ltd. over an area of 40 hectares.

Request for setting up of a Polymer based sector specific SEZ at Village Bhimasar, Taluka Anjar, District Kutch, Gujarat by Asia Pacific Corporation Limited – 101.17 hectares (Supplementary agenda - Sl. No. 5):

to grant formal approval for setting up of a Polymer based sector specific SEZ at Village Bhimasar, Taluka Anjar, District Kutch, Gujarat by Asia Pacific Corporation Limited over an area of 101.17 hectares.

Request for setting up of a sector specific SEZ for IT/ITES sector at Basanti Highway, Bhangor, South 24 Parganas District, West Bengal by Salarpuria Properties Private Limited – 10.27 hectares (Supplementary agenda - Sl. No. 6):

The Board noted the Developer was in possession of the 10.27 hectares of land. The State Government had also recommended the proposal. Accordingly, the Board decided to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Basanti Highway, Bhangor, South 24 Parganas District, West Bengal by Salarpuria Properties Private Limited over an area of 10.27 hectares.

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Request for setting up of a sector specific SEZ for IT/ITES sector at Village Sewah, GT Road, Panipat, Haryana by Mittal Infratech Private Limited – 10.52 hectares (Supplementary agenda - Sl. No. 7):

to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Village Sewah, GT Road, Panipat, Haryana by Mittal Infratech Private Limited over an area of 10.52 hectares, subject to the condition that the existing unauthorized structure on the land would be demolished before the notification is issued.

Request for setting up of a sector specific SEZ for IT/ITES sector at Village Binola, Gurgaon, Haryana by Starex SEZ Developers Pvt. Ltd.– 10 hectares (Supplementary agenda - Sl. No. 8):

to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Village Binola, Gurgaon, Haryana by Starex SEZ Developers Pvt. Ltd. over an area of 10 hectares.

Request for setting up of a sector specific SEZ for IT/ITES sector at Sarpavaram Village, Kakinada Mandal East Godavari District, Andhra Pradesh by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC)– 10.41 hectares (Supplementary agenda - Sl. No. 9):

to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Sarpavaram Village, Kakinada Mandal East Godavari District, Andhra Pradesh by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) over an area of 10.41 hectares.

Request for setting up of a sector specific SEZ for IT/ITES sector at Survey number 255, Adibatla (V), Ibrahimpatnam(M), R.R. District, Andhra Pradesh by Tata Consultancy Services – 30.35 hectares (Supplementary agenda - Sl. No. 10):

to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Survey number 255, Adibatla (V), Ibrahimpatnam(M), R.R. District, Andhra Pradesh by Tata Consultancy Services over an area of 30.35 hectares.

Request for setting up of a sector specific SEZ for IT/ITES sector at Survey number 255, Adibatla (V), Ibrahimpatnam(M), R.R. District, Andhra Pradesh by

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Cognizant Technology Solutions India Private Limited – 16.19 hectares (Supplementary agenda - Sl. No. 11):

to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Survey number 255, Adibatla (V), Ibrahimpatnam(M), R.R. District, Andhra Pradesh by Cognizant Technology Solutions India Private Limited over an area of 16.19 hectares.

Request for setting up of a sector specific SEZ for IT/ITES sector at Sector 65, Village Kharadi, Pune, Maharashtra by GERA Developments Private Limited – 10.44 hectares (Supplementary agenda - Sl. No. 12):

to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Sector 65, Village Kharadi, Pune, Maharashtra by GERA Developments Private Limited over an area of 10.44 hectares.

Request for setting up of a sector specific SEZ for IT/ITES sector at Bada Bangarda, Indore, Madhya Pradesh by MAN Industries (India) Limited – 20 hectares (Supplementary agenda - Sl. No. 18):

The Board noted that the Developer has applied for approval of 118.16 hectares. However, it was noted that the possession was only for 20 ha of land. The State Government also recommended the proposal for grant of approval over the area of 20 ha. Accordingly, the Board decided to grant formal approval for setting up of a sector specific SEZ for IT/ITES sector at Bada Bangarda, Indore, Madhya Pradesh by MAN Industries (India) Limited over an area of 20 hectares.

Request for setting up of a sector specific SEZ for Building products sector at Annangi Village, Madditadu Mandal, Prakasham District, Andhra Pradesh by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) – 106.36 hectares (Supplementary agenda – Annexure – II - Sl. No. 1):

to grant formal approval for setting up of a sector specific SEZ for Building products sector at Annangi Village, Madditadu Mandal, Prakasham District, Andhra Pradesh by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) over an area of 106.36 hectares.

Request for setting up of a Multi Product SEZ at Jambusar, Bharuch, Gujarat by Sterling Erection and Infrastructure Private Limited – 1263 hectares (Supplementary agenda – Annexure – II - Sl. No. 2):

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to grant formal approval for setting up of a Multi Product SEZ at Jambusar, Bharuch, Gujarat by Sterling Erection and Infrastructure Private Limited over an area of 1263 hectares.

Request for setting up of a sector specific SEZ for Services sector at Panvel, District Raigarh, Maharashtra by Sunny Vista Realtors Private Limited – 135.12 hectares (Supplementary agenda – Annexure – II - Sl. No. 3):

to grant formal approval for setting up of a sector specific SEZ for Services sector at Panvel, District Raigarh, Maharashtra by Sunny Vista Realtors Private Limited over an area of 135.12 hectares.

(B) Decision for In-principle Approvals:

Request for setting up of a sector specific SEZ for providing products and related services for oil and gas, energy and petrochemical sector at Gujarat by Gujarat Hydrocarbon and Energy SEZ Limited -220 hectares (Main agenda - Sl. No. 2):

The Board noted the Developer was not in possession of the land and the State Government had recommended the proposal for in-principle approval.
Accordingly, the Board decided to grant in principle approval for setting up of a sector specific SEZ for providing products and related services for Hydrocarbon and Petrochemicals sector at Gujarat by Gujarat Hydrocarbon and Energy SEZ Limited over an area of 220 hectares.

Request for setting up of a sector specific SEZ for Engineering products sector at Village Varshamedi, Taluka Anjar, District Kutch, Gujarat by Welspun Anjar SEZ Ltd -121 hectares (Main agenda - Sl. No. 3):

The Board noted the Developer was not in possession of the land. The State Government had also recommended the proposal for in-principle approval.
Accordingly, the Board decided to grant in principle approval for setting up of a sector specific SEZ for Engineering products sector at Village Varshamedi, Taluka Anjar, District Kutch, Gujarat by Welspun Anjar SEZ Ltd. over an area of 121 hectares, subject to the condition of obtaining prior security clearance from the Ministry of Home Affairs in case of any foreign company or FDI being proposed in the project.

Request for setting up of a sector specific SEZ for Engineering sector at North 24-Parganas, West Bengal by Sylvan Infrastructure Pvt. Ltd.– 200 hectares (Supplementary agenda - Sl. No. 3):

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The Board noted the Developer was not in possession of the land. The State Government had also recommended the proposal for in-principle approval.
Accordingly, the Board decided to grant in principle approval for setting up of a sector specific SEZ for Engineering sector at North 24-Parganas, West Bengal by Sylvan Infrastructure Pvt. Ltd. over an area of 200 hectares.

Request for setting up of a sector specific SEZ for Textile sector at Kolhar Industrial Area, Bidar District, Karnataka by Jade Holdings Pvt. Ltd.– 207.72 hectares (Supplementary agenda - Sl. No. 13):

The Board noted the Developer was not in possession of the land. The State Government has recommended the proposal for in-principle approval. Accordingly, the Board decided to grant in principle approval for setting up of a sector specific SEZ for Textile sector at Kolhar Industrial Area, Bidar District, Karnataka by Jade Holdings Pvt. Ltd. over an area of 207.72 hectares, subject to the condition of having a net worth of Rs. 50 crore or more by the time the Developer comes back for formal approval.

Request for setting up of a sector specific SEZ for Gems and Jewellery sector at Aurangabad, Maharashtra by Gitanjali Gems Limited– 102 hectares (Supplementary agenda - Sl. No. 14):

The Board noted the Developer was not in possession of the land. The State Government had also recommended the proposal for in-principle approval.
Accordingly, the Board decided to grant in principle approval for setting up of a sector specific SEZ for Gems and Jewellery sector at Aurangabad, Maharashtra by Gitanjali Gems Limited over an area of 102 hectares.

Request for setting up of a Multi Product SEZ at Nagpur, Maharashtra by Gitanjali Gems Limited – 1000 hectares (Supplementary agenda - Sl. No. 15):

The Board noted the Developer was not in possession of the land. The State Government has now recommended the proposal for in-principle approval.
Accordingly, the Board decided to grant in principle approval for setting up of a Multi Product SEZ at Nagpur, Maharashtra by Gitanjali Gems Limited over an area of 1000 hectares.

Request for setting up of a Free Trade Warehousing Zone at Kandla, Gujarat by LMJ Warehousing Private Limited – 40 hectares (Supplementary agenda - Sl. No. 16):

The Board noted the Developer was not in possession of the land. The State Government had also recommended the proposal for in-principle approval.
Accordingly, the Board decided to grant in principle approval for setting up of a Free Trade Warehousing Zone at Kandla, Gujarat by LMJ Warehousing Private Limited over an area of 40 hectares, subject to the condition of obtaining prior security clearance from the Ministry of Home Affairs in case of any foreign

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company or FDI being proposed in the project and also subject to the condition of having a net worth of Rs. 50 crore or more by the time the Developer comes back for formal approval.

(C) Decision for Deferment/cancellation/withdrawal:

Request for setting up of a sector specific SEZ for IT/ITES sector at Mohali (S.A.S. Nagar) District, Punjab by Sukhm Infrastructures Pvt. Ltd. – 11.627 hectares (Main agenda - Sl. No. 8):

The Board noted that clarification with regard to contiguity of land and on the existing road network within the land proposed need to be obtained from the Developer. Accordingly the Board decided to defer the consideration of the proposal.

Request for setting up of a sector specific SEZ for IT/ITES sector at TP-1 Rai, Sonepat, Haryana by Anant Raj Industries Ltd.– 10 hectares (Supplementary agenda - Sl. No. 4):

The representative of the State Government informed that the State Government has reviewed the recommendation and decided to withdraw the same. The Board noting that the State Government has withdrawn its recommendation decided to treat the proposal as withdrawn, since only such proposals are listed in the agenda which are duly recommended by the State Government concerned.

Request for setting up of a sector specific SEZ for Gems and Jewellery sector at Village Morkhal, Silvassa, Union Territory of Dadra and Nagar Haveli by AEC Marketing Pvt. Ltd. – 12.16 hectares (Supplementary agenda - Sl. No. 17):

As the formal communication of the State Government recommendation had not been received, the proposal was withdrawn from the agenda. The Ministry of Home Affairs also had observed that approval, if any, may be granted subject to the condition of obtaining prior security clearance from the Ministry of Home Affairs in case of any foreign company or FDI being involved in the project.

Request for setting up of a sector specific SEZ for Biotechnology Park at Village Kharivli, Taluka Wada, District Thane, Maharashtra by Saloni Business Park Private Limited – 27.24 hectares (Supplementary agenda - Sl. No. 19):

The Board noted that the Developer was in possession of the land. However, the representative of the State Government stated that they are recommending in principle approval only since certain permissions under the Mumbai Tenancy Law etc. were required for the land in possession. The Board decided to defer the consideration of the proposal.

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Supplementary Agenda

Item No. 3: Requests for co-developer

(i) Request of M/s. Unitech Limited as co-developer in IT/ITES SEZ at Dundahera, Gurgaon, Haryana, proposed to be developed by M/s Gurgaon Infospace Limited (erstwhile IST Limited)

The Board considered the request of M/s Unitech Limited as co-developer in
IT/ITES SEZ at Dundahera, Gurgaon, Haryana proposed to be developed by M/s. Gurgaon Infospace Limited (erstwhile IST Limited) on an area of 11.58 hectares. The representative of the State Government stated that change of land use permission in the new name has not been granted as the land was not transferred in the new name as yet and sought deferment of the proposal. Accordingly, the Board deferred the consideration of the request.

Item No. 4: Requests for authorized operations

(i) Request of M/s. Nokia India Private Limited for authorized operations in the Nokia Telecom SEZ at Sriperumbudur, Tamil Nadu

The Board considered the request of M/s Nokia Telecom SEZ, an SEZ for
manufacture and assembly of electronics, telecommunication and IT hardware which was notified on 19th July, 2005, for authorized operations in the SEZ. The Board approved the following activities/operations:-

(a) Clinic/medical centers/hospital – upto 100 bed.
(b) Office space/training/educational institution including crèche with total built up area not exceeding 25000 sqm. (c) Office space/shopping arcade/retail space etc. not exceeding 50,000 sqm. (d) 100 service apartments with total built up area not exceeding 10,000 sqm. (e) Sport facilities like gym and tennis courts. (f) Fire station (g) Multi level car parking (h) Bus bay

The issue of approval for constructing a hotel not exceeding 200 rooms requested for by the developer was also discussed at length. The developer who was invited for a presentation on this issue informed the Board that thus SEZ which propose to employ over 20000 people cannot be treated on par with a small 10 Hectares IT/ITES SEZ since the area is 212 acres, and since their core function is manufacture of mobile phones. They further argued that they have 75% processing area as against 50% stipulated under the Rules. Attention was also drawn to the fact that as per the guidelines, in sector-specific SEZs, hotel with 100 rooms with the total

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built-up area not exceeding 10000 square meters is allowed. The developer justified the requirement of constructing a hotel with 100 rooms in view of the distance from their SEZ to Chennai and since 7 additional global vendors of Nokia which are in the process of setting up units therein which would require such a facility. After detailed discussions, the Board directed that the Development Commissioner MEPZ SEZ may visit the Nokia facility and submit a report with relevant maps showing the detailed construction plan proposed for the hotel and other facilities such as school, clinic/hospital, office space/shopping arcade etc. requested for by the developer. Accordingly, Board decided to defer the consideration of this request.

Item No. 5: Request for increasing / decreasing the area

(i) Request of Ganesh Infrastructure Private Limited for increasing area of the IT/ITES SEZ at Ahmedabad, Gujarat

The request of M/s Ganesh Infrastructure Private Limited for increasing the area of the IT/ITES SEZ notified on 22.6.2007, at Ahmedabad, Gujarat for increase of the area from 21.11 hectares to 32.42 hectares was considered and approved by the Board.

(ii) Request of M/s. Karnataka Industrial Area Development Board for reduction in area of the pharmaceutical SEZ at Hassan, Karnataka

The Board considered the request of M/s Karnataka Industrial Area Development Board for reduction in area of the pharmaceutical SEZ formally approved for setting up at Hassan, Karnataka from 281.21 hectares to 109.295 hectares. After discussions and based on the recommendation of the State Government, the Board approved the request.

(iii) Request of M/s APIIC for decreasing the area of the IT/ITES SEZ at Nanakramguda, Andhra Pradesh

The Board considered and approved the request of M/s APIIC for reduction in area from 20.53 hectares to 16.48 hectares of their notified IT/ITES SEZ at Nanakramguda, Andhra Pradesh, subject to the condition that no benefit has been taken by the Developer and/or the unit(s) in any of the activities in the area sought to be reduced.

Item No. 6: Request of M/s. Shapoorji Pallonji and Company Limited for change of name to M/s. Bengal Shapoorji Developers Private Limited

The request of M/s Shapoorji Pallonji for change of name to M/s Bengal Shapoorji Developers Private Limited was considered and approved by the Board.

Item No. 7: Request of Cochin Port Trust for annexing water area to the SEZ at Puthuvypeen

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The Board deferred the consideration of the request of Cochin Port Trust and it was decided that the Developers may be asked to make a presentation in the next BoA..

Item No. 8: Request of Emaar MGF for extension of validity of in-principle approval

The Board considered the request by M/s Emaar MGF for extension of validity of 10 in-principle approvals granted to them and noted that in all cases, the requests for extension were made after the expiry of the LOA. The Board decided that the approvals already expired cannot be extended and that developer may apply afresh , if they so desire.

Item No. 9: Request of M/s Palmon Exports, KASEZ for renewal/ extension of
Letter of Approval for a further period of five years.

The Board considered the request of M/s. Palmon Exports, KASEZ for renewal of Letter of Approval for a further period of five years and considering that they have been primarily selling second hand/re-conditioned goods into the domestic area only, decided that the reconditioning activities cannot be granted any further extension.

Item No. 10: Request of M/s. All Fair Deals International, Kandla SEZ for extension/renewal of Letter of Approval for a further period of 5 years.

The Board considered the request of M/s. All Fair Deals International, Kandla SEZ
for extension/renewal of Letter of Approval for a further period of five years. The Board noted from the report sent by the DC Kandla SEZ and the Commissioner Customs Kandla that they have been primarily selling second hand/re-conditioned goods into the domestic area and decided that such reconditioning activities focused on the DTA cannot be granted any further extension.

Item No. 11: Appeal of M/s. Glitz Global against rejection of their application the Unit Approval Committee of Noida SEZ.

The applicant presented his case before the Board of Approval and requested for consideration of the same. The Board noted that the application was rejected by the unit Approval Committee in the absence of proof of net worth, financial strength,
capacity for setting up the unit, marketing tie-up etc. After detailed discussions, the Board decided to reject the appeal of M/s Glitz Global.

The meeting ended with vote of thanks to the Chair.

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