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Centre sanctions Rs.16 cr for four diamond CFCs

Central government has sanctioned `16 crore for the setting up of common facility centres (CFCs) in Ahmedabad, Amreli, Visnagar and Palanpur to allow small and medium diamond manufacturers to make use of state-of-the-art technology to increase their productivity. 

The government has approved eight centres to be set up in Gujarat and five in other parts of the country. The names of the places where the other four CFCs will come in Gujarat would be announced later. The government has for now allocated fund for the setting up four centres, while the remaining `34 crore will be allocated in the second phase of the project under the 12th Five Year plan.

Gems and Jewellery Export Promotion Council (GJEPC) and Indian Diamond Institute (IDI) had prepared a detailed project report (DPR) for setting up CFCs at 13 places, including in Surat, Navsari, Ahmedabad, Amreli, Bhavnagar, Botad, Visnagar, Junagadh, Jasdan and Deesa, in Gujarat. Gujarat processes `90,000 crore worth of polished diamonds per annum. Surat contributes 80 per cent of diamond manufacturing, while the rest is done in other centres.

Around 80 per cent of the units in these small centres in Saurashtra, Ahmedabad and north Gujarat perform job work for the big and medium units in Surat. In the past few years, many small diamond manufacturers and workers shifted to their villages in Saurashtra, including in Bhavnagar and Amreli, to set up small units following round-the-clock supply of electricity under the state government’s Jyotirgram scheme.Industry sources said diamond manufacturers in centres other than Surat are lagging behind when it comes to processing diamonds using hi-tech. Small players are not in a position to invest lakhs of rupees for installing modern technology for diamond polishing and jewellery making.

“We visited all the four centres proposed under the CFC scheme. The diamond associations of the respective centres were updated on the facilities to be set up at the CFCs. The work on setting up the CFCs is expected to be completed by 2016,” GJEPC Executive Director Sabhyasachi Ray said. “Diamond units operating in small centres across the state are using outdated technology. Through the CFCs, we want to provide a platform to diamond manufacturers to make use of modern technology and increase their productivity at par with global standards.”

GJEPC regional chairman Dinesh Navadia said, “Small and medium manufacturers in these small centres will be able to directly compete with the big manufacturers in Surat with the use of modern technologies.”

Courtesy: Times of India