The Bharat Diamond Bourse (BDB), billed as the world’s largest diamond trading center, opened Sunday in India’s financial capital Mumbai more than 20 years after the idea was first proposed.
“With this, Mumbai will be the largest diamond hub in the world,” BDB president Anoop Mehta said, referring to the $240-million project, in which the land alone accounts for $56.75 million. Currently, Mumbai’s diamond trade operates from cramped offices in three buildings in the city’s south.
The Bandra-Kurla complex, with nearly two million square feet of office space above ground and a one million square foot basement, houses 2,500 offices in eight nine-floor towers.
“Due to a relaxation in floor space index rules since the project was initiated, the BDB now has the option of erecting a ninth 20-story tower,” said Mehta.
The exchange, idea for which was conceived more than two decades, has 900 trader members and another 1,400 provisional members. The new complex is expected to woo between 20,000 and 25,000 visitors with a peak inflow of 30,000 every day.
“The BDB was set up for the primary objective of establishing necessary infrastructural facilities for promotion of export of diamonds including diamond jewelry from India and thus provide all support and service to eventually make India an international trading center for gems and jewelry,” said Mehta.
The exchange, which was incorporated in 1984 with diamond exporters and state-run trading firm MMTC, earlier operated out of the city’s traditional diamond hub in south Mumbai.
“While the bourse was expected to move to its new premises in the early 90s, it was held up by procedural delays,” Mehta said.
“India’s main concern is to secure direct supplies of rough diamonds, particularly for the smaller players,” said Indian Commerce Minister Anand Sharma. “Large suppliers such as Alrosa, Rio Tinto and Endiama have been granted exemptions from import bank guarantee requirements.”
About 20 percent of the customs processing facilities would move into the new complex — which supports necessary infrastructure needed for the promotion of diamonds and provide facilities for the importers, exporters, traders, stakeholders and buyers — on Monday, said Mehta.
“And all of the customs processing units as well as a major part of the diamond trade was expected to move into the new facility by January 2011,” he added.
Earlier, exporters had to carry diamonds across the city in order to get clearances from the customs department.
India’s diamond industry, which is estimated to grow by an average 10 to 15 percent each year in the next five years, accounts for 70-75 percent of total diamond exports and employs 850,000 people, making it the largest cutting hub by value and number of employees.
Last year, the country’s import of rough diamonds rose 24.5 percent to 149.8 million carats against a year earlier, and export of cut and polished diamonds witnessed a surge of 28.3 percent to 59.9 million carat.
India, which processes about seven in every 10 of the world’s diamonds, accounts for 57 percent of the global diamond processing industry. “All top 400 exporters are over here (at the bourse), which accounts for 90 percent of the turnover,” Mehta said.
