Surat: Surat, known as a hub for processing of rough diamond is readying itself to set up a world class diamond bourse having trading facilities which will integrate processing and house all those interested in diamond business at one place, reports The Times of India.
The proposed bourse may be of the size of the one existing in Mumbai. Mumbai’s bourse is in 2 million square feet while Surat bourse is proposed in two lakh square yards, which will give virtually similar space.
This is happening at a time when Mumbai based much hyped Bharat Diamond Bourse (BDB) spread in 2 million square feet has now almost occupied.
While traders in diamonds have overwhelmingly responded to the Surat bourse’s offer, Mumbai’s BDB says that BDB will remain in Mumbai and continue to be a hub for international business.
Surat Diamond Association (SDA), which has proposed to set up a new bourse in Surat received over 15000 applications so far. The association said that the work has been expedited for registration of a not-for-profit company ‘Surat Hira Bourse’.
“The name is not yet finalised. We may add the word ‘international’ to it,” says Dinesh Navadiya, president of SDA, adding that the committee set up to look into formation of the bourse will be meeting in the first week of June to finalise things.
At a project cost of over Rs 2000 crore, the bourse will come up in next two years. While a 200,000 sq yards plot has been zeroed in around Surat, purchase of land will take place post the committee meeting, Navadiya adds further.
The purpose of setting up a new bourse at Surat is that most traders, processors are not in a position to house them in Mumbai or Mumbai based BDB. Everything including real estate is beyond their reach in Mumbai. This led to idea of setting up a bourse as real estate is much cheaper, taxation structure is favourable in Gujarat and processing is concentrated at Surat. Only issue was trade has been scattered in Surat in four distant localities. Mumbai’s experience with BDB at its financial center Bandra Kurla suggests having all the facilities required at one place helps.