Delhi may set up country's first gems, jewellery SEZ
The Delhi government is planning to demarcate 140 acres of land for the development of a gems and jewellery special economic zone (SEZ) in the city.
By Rajat Guha & Gunjan Pradhan Sinha, TNN |
NEW DELHI: It seems that the SEZ bug has bitten the capital city as well. The Delhi government is planning to demarcate 140 acres of land for the development of a gems and jewellery special economic zone (SEZ) in the city. This would be the largest gems and jewellery SEZ in the country and the first of its kind in the national capital.
Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) will soon rope in an international consultant to prepare the blueprint for the project. “The consultant will make a feasibility study of the project,” DSIIDC managing director Jalaj Srivastav told ET.
Trade from the proposed SEZ is expected to generate Rs 10,000 crore every year. The project requires an investment of Rs 500 crore and would take about three years to come up, he added.
“Delhi would become a jewellery export destination with the SEZ coming up. Land has been acquired in Babrola village on the outskirts of the capital. We have now sent our proposal for due clearances from the commerce and industry ministry,” he said.
So far, Delhi accounts for only 8% of Indian gems and jewellery export pie. “The ministry of commerce is unlikely to have reservations on the project if it meets all the requisite conditions of a viable SEZ,” the minister of state for commerce, Jairam Ramesh, said, when contacted.
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The proposed SEZ would have the advantages of being centrally-located, equipped with necessary infrastructure and other facilities. It would house identification, grading and certification of diamonds, a world-class gem and jewellery training institute, a gem-testing lab, an assaying and hallmarking centre as well as government offices to facilitate trade.“So far, the jewellery export market is dominated by diamond polishing merchants who started exporting jewellery. This SEZ will give a chance to jewellery manufacturers that are family-run businesses like Tribhovan Das Bhimji Zaveri (TBZ) and Mehrasons to partake of the export trade in a big way. The SEZ will play an important role to boost India’s position in the global trade as the Italian jewellery exports are declining,” director, advisory service KPMG, Neelesh Hundekari said.
According to Delhi-based jewellery exporters, the income tax benefit under the SEZ scheme will be of great help as profit margins are declining in the export business as it becomes even more competitive by the day. It’ll also provide their buyers a base to test the products and certify them according to self-certification regulations of the destination country.
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