What about the trade in Mumbai?
After a delay of more than one-and-half-years, construction of the world-class Surat Diamond Bourse (SDB) is all set to begin at the Diamond Research and Mercantile (DREAM) city at Khajod with Gujarat chief minister Vijay Rupani laying the foundation stone on October 23.
This will be the second time when the SDB’s foundation stone will be laid in the last one-and-a-half years. In February 2015, former CM Anandiben Patel had laid the foundation stone. However, the work could not be started due to the long delay in the official allotment of land and fixing of the jantri rates.
In July 2016, the urban development and urban housing department of the Gujarat government issued a notification sub-dividing the area under Surat Urban Development Authority (SUDA) and constituting the Khajod Urban Development Authority (KUDA). The powers and functions of the DREAM City Company Limited has been entrusted to KUDA.
Will the Surat Diamond Bourse be beneficial for the trade?
With the formation of KUDA, the development of Dream City has gathered pace. Initially, the bourse will have 4,250 offices spread on 60 lakh square feet area. Around 70% of the offices have been booked by the diamantaires in the city, while the rest have been booked by those in Mumbai, Antwerp, Israel, Hong Kong and Dubai.
Office-bearers of Surat Diamond Bourse said the bookings for office space were closed in March 2016. Around 52 lakh square feet of the salable area at the SDB was booked, generating over Rs 300 crore. Each member has paid Rs 600 per square feet for the office space at SDB.
The diamond merchants and company owners will not have to keep offices and staff at the Bharat Diamond Bourse (BDB) or Opera House. The trading of polished and rough diamonds will be carried out from the SDB, which will be equipped with the state-of -the-art facilities including safe deposit vaults and custom clearance house. At present, almost 80 per cent of the diamonds manufactured in Surat are traded in Mumbai and exported to various countries across the world.
“This move by the Surat based manufacturers is perfectly understandable. They just want more control over the value chain.”