Declare Relief-Revival Package for Diamond Industry-Workers

Gujarat Government Recommends Constructive Measures

Chief Minister Shri Narendrabhai Modi submitted a detailed memorandum to the Prime Minister Dr.Manmohan Singh today to immediately declare a Revival and Relief package for the Diamond Industry and its workers. Diamond industry is reeling under recession due to global meltdown.

Gujarat Government has recommended constructive and effective measures to bring the Diamond Industry on the Track. To ensure employment safety of Lakhs of diamond workers, State had represented before the Indian Government to come forth with a relief package, as the Industry is under the worst influence of the Global recessionary trends. Central Government has not given any response in this regard.

Shri Narendrabhai Modi said, The Diamond Industry of Gujarat holds the distinction with its 90% chunk, in the past, it has made great contributions in terms of revenue income to the Indian Government, by exporting the polished diamonds. It becomes primary responsibility of the Central Government to bring the industry out of the severe economic crisis.

Chief Minister cited the various incentives offered to the industry by the State Government, Gujarat Government has given exemption from VAT and Entry-Tax, being the only State to provide such an exemption.

Chief Minister has categorically informed to the Prime Minister, To save the Diamond Industry from the ongoing economic crisis, over and above the revival package, a special relief package must be declared for the diamond workers. The Hindustan Diamond Ltd. A public Sector Unit of Centre-may provide the required raw material to the diamond industry of Gujarat at Surat, Bhavnagar, Rajkot, and Amreli, which offers employment to the Lakhs of Skilled workers.

The constructive suggestions made by the Chief Minister are as under:

  • Declare a Relief Package for the Diamond Artists on the same line under which a Package is offered to Artisans and Handicraft workers. Instruct Hindustan Diamond Ltd to provide the rough raw materials to Gujarat Diamond Industries.
  • Declare a liberal credit policy especially for the ailing diamond industries, applicable to all the R.B.I. financial institutes.
  • Wherever service tax is applicable, provide deferred payment facility for two years.
  • Enact a Penal Interest Waiver on export from 1/1/2008.
  • Revise Interest Subversion from 2% to 4%.
  • Without waiting for R.B.I Reimbursement, the Banks should give subversion on Direct Amount of Interest Many of the Banks have not acted on the Subversion.
  • Diamond Export Industry is solely bases on Dollar Transactions. Rupee Export Credit, extend it up to Dollar Credit Line.: Ensure the perennial flow of Dollar Finance.
  • Banks ought to finance at 7% Interest rates.
  • To avoid bad stocks of Diamond, concession rates of 7% must be applicable for Corporate Loans.
  • Suspend the Non Performing Assets for one year.
  • Exporters should be discounted for the out standing Export Bills against the Local Bills.
  • The EPL limit should be extended up to 270 days in terms of Dollar Credit for the Exports.

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