Gujarat govt to help in direct sourcing of roughs

While the impasse over direct sourcing of rough diamonds from Zimbabwe still continues with the international diamond regulator - Kimberley Process (KP) - yet to give an export approval, the Gujarat government has come forward in support of the world's biggest diamond cutting and polishing centre in Surat for the procurement of rough diamonds from African Union and other diamond mining countries.

Chief minister Narendra Modi, who was in the city to inaugurate the gems and jewellery show 'Sparkle-2011' on Thursday, has assured long-term cooperation to Surat diamond industry in procuring rough diamonds from Zimbabwe and other mining countries like Canada.

Criticising the role played by Central Government over the Zimbabwe issue, Modi said, "India is the member country in the KPSC and it is the moral responsiblity of the Indian Government to pitch for the rough diamond requirement of the diamond sector. We will take up the issue of direct sourcing of rough diamonds from Zimbabwe with the Central government."

Modi said diamond consortium - Surat Rough Diamond Sourcing India Limited (SRSDIL) - was set up by 1,500 diamantaires in Surat with the mission to directly source rough diamonds for Surat.

But the dream of Surti diamantaires could not see the light of the day after the Central government failed to represent the rough diamond shortage issue with the Kimberley Process committee.

According to Modi, the Gujarat Government is closely working with the diamond mining companies in Canada to procure rough diamonds for the diamantaires in Surat and in other parts of the state. A delegation of senior government officials and diamond miners from Canada are participating in the Vibrant Gujarat summit to be held on 12 January and 13 January and the direct sourcing of rough diamonds for Surat industry would be discussed.

"Many investors from Gujarat are buying coal mines in Indonesia and other parts of the world. We want the diamantiares to buy diamond mines in Canada and African countries. This will solve the rough diamond shortage issue faced by the industry," said Modi.

He urged nationalised banks to provide door step service to diamantiares in Surat as most of the important banking facilities like Letter of Credit (LC) are only made available in Mumbai banks.

Read more: Gujarat govt to help in direct sourcing of roughs: CM - The Times of India http://timesofindia.indiatimes.com/city/surat/Gujarat-govt-to-help-in-direct-sourcing-of-roughs-CM/articleshow/7231777.cms#ixzz1AII8yqCX