An official Indian delegation that visited Antwerp and Dubai recently to study the regulations and procedures that govern the diamond industry in these countries has submitted its report to the Finance Ministry which is involved in finalising its budgetary proposals for the year.

The team comprised senior officials from three government departments – DGS & D, CBDT, CBEC – and the GJEPC. The team was specifically studying the procedures and taxation policies of these countries to draw up a framework for the Special Notified Zones that have already received an in-principle approval from the government.

It may be recalled that GJEPC had proposed the setting up of a SNZ to enable rough diamond producing countries and companies to sell directly to the manufacturers in India. It was believed that this would help India move towards becoming a global trading centre for rough diamonds and also provide easier access to raw materials for the small and medium enterprises in the sector.

Speaking at the World Diamond Congress in Delhi in December 2014, Hon’ble Prime Minister Narendra Modi had announced his government’s approval of the SNZ scheme. The study delegation took place as a follow up to this with the aim of preparing a blueprint for the actual operation of the zones.

An official notification is now awaited and expectation is high that it may be announced as part of the Budget.