New Delhi: An official release from the government of India circulated on 21st Sept. 2016 says that the Cabinet Committee on Economic Affairs has approved shutting down of Hindustan Diamond Company Pvt Ltd (HDCPL), a joint venture between the Indian Government and De Beers Centenary Mauritius Ltd (DBCML), which supplies rough diamonds to Indian diamond industry.

The release notes that the winding up of HDCPL is not likely to affect supply of rough diamonds to Indian diamond industry as it has grown in the past years and several Indian players are sight-holders with leading diamond producers.

HDCPL, which was set up as a 50:50 joint venture between the Government and De Beers in 1978, has been serving the small and medium diamond jewellery exporters, who have no direct access to rough diamonds.

The release also mentions that the Special Notified Zone (SNZ) at Bharat Diamond Bourse, Mumbai, set up in 2015, is now enabling smaller Indian players have direct access for supply of rough diamonds.

“Foreign mining companies display their rough diamond lots to Indian manufacturers and then take them back. Sales are then carried through e-auction from offices situated in other countries, to manufacturers in India,” the release said.