Surat Diamond Bourse Planners Receive Land Allocation

(IDEX Online) – A world-class diamond bourse in Surat appears to be making progress after Gujarat state’s Chief Minister, Anandiben Patel, agreed to allocate government land close to the city’s airport.

The decision followed talks with the committee members of the proposed Surat Diamond Bourse, The Times of India reported.

"After a 30-minute presentation of the project, she agreed to allot government land,” said Chandrakant Sanghavi, the Gujarat regional chairman of the Gems and Jewellery Export Promotion Council (GJEPC). “The Chief Minister also asked the district collector to complete the land allotment process at the earliest [time]."

The SDB, which will reportedly be larger than Bharat Diamond Bourse in Mumbai, is expected to create jobs for 20,000 to 30,000 people, and create a trading hub for polished diamonds.

The trading offices of all the big diamond companies will be based at the SDB while sorting of rough diamonds will be done in Mumbai. Close to 15,000 diamond traders, merchants and manufacturers are keen to set up shops in the proposed SDB, according to the newspaper report.

Meanwhile, in separate news, the Surat Diamond Association (SDA) is calling on the Reserve Bank of India (RBI) to permit Indian banks to approve suppliers and buyers credit for the import of rough and polished diamonds beyond 90 days from the date of shipment for small and medium (SME) diamantaires.

The SDA has received complaints from more than 300 diamantaires from the SME sector who are facing serious issues with the banks in India and Antwerp for not making the payments to their overseas sellers of rough diamonds within the stipulated time frame of 90 days. The manufacturers are preparing to go on strike if their demands are not fulfilled.

The small and medium size diamantaires buy rough goods from Antwerp, and the whole process of diamond cutting and polishing takes 120 to 180 days with a consequent credit period to make payments of 120 to 180 days depending upon the agreement between buyer and sellers.

But Indian banks do not make payments to the overseas parties if the buyer of rough diamonds fails to make payment within 90 days. If the manufacturers miss the deadline of 90 days, then the payment process is extended up to more than 60 days.

Dinesh Navadia, president, SDA said, "We have written a letter to RBI to exclude the SME sector from the 90 days payment circular. If our demand is not met than the manufacturers will go on an indefinite strike after 10 days."