Gandhinagar Relief package may be announced soon for diamond units; Gujarat Diamond Development Board to be revived

Rattled by consistent media reports highlighting the diamond industry passing through a bad phase and the suffering of diamond workers, the government is seriously contemplating to announce a comprehensive relief package to put the industry back on track. This would include the revival of the closed Gujarat Diamond Development Board (GDDB).

On Monday, state Chief Secretary D Rajagopalan convened an emergency meeting of senior officials attached to the industries and other departments to discuss various measures to bail the diamond industry out of the present crisis and provide relief to its jobless workers.

Sources in the Industries Department said the revival of GDDB and providing financial assistance to jobless diamond workers, among other things, were discussed at the Monday meeting. It was also decided at the meeting to collect all relevant information on the number of diamond units shutting shop, and diamond polishers and cutters rendered jobless.

A senior official attending the meeting told Newsline later that the government is thinking about providing soft loans to diamond unit owners on their assets, and also a loan of Rs 50,000 at lower interest to diamond workers. It was also suggested at the meeting to provide a monthly maintenance allowance of Rs 1,000 to each of the diamond workers living in distress due to the present economic crisis.

The government may also provide at least 20 per cent relief in electricity bills to diamond factories. Besides, it is planning to award scholarships and 50 per cent relief in state transport bus fares to the wards of jobless diamond workers studying in schools. “We also plan to provide accident insurance of Rs 5 lakh and mediclaim of Rs 10,000 to all diamond industry workers across the state,” said the official.

The Modi government has drawn flak not only from the Opposition, but also from a section of the ruling BJP for its decision to close down the SDDB. The Board office situated in the Udhyog Bhavan in Gandhinagar had been shut down about three years ago.

“When the government decided to close down the Board, I had pleaded, but in vain, with Chief Minister Narendra Modi that it should continue to function in the larger interest of the money spinning diamond industry and the 25 lakh strong workforce engaged in it,” recalled former Board director Viththal Mendpara.

Mendpara, the general secretary of Bhavnagar city BJP, said he had served the Board as one of its directors for about five years till 2004, during which the Board had carried out a series of programmes to boost industry in the state. “The Board had reserves of about Rs four crore when the government suddenly decided to wind up its activities. During my stint as its director, a proposal had been mooted to cover all the diamond workers under accident and medical insurance, for which we had even set aside Rs 50 lakh,” he said.

Mendpara told Newsline on the phone on Monday that the Board had been set up in 1990 when the late Chimanbhai Patel was the Chief Minister. “One should not criticise the Modi government for extending incentives to the Tatas for their Nano car project. But at the same time, the government can’t ignore the diamond industry that brings crores of foreign exchange to the state, providing employment to over 25 lakh people,” he said.

Also the president of Bhavnagar District Diamond Association, Mendpara is critical of the government delaying the implementation of Rs 107 crore gems and jewellery park project, which is to come up in Bhavnagar. About three years ago, the government had announced that it would set up a gems and jewellery park on the sprawling 6,700 square metres of land in the city, after the Mumbai-based consultancy firm, IL&FS, submitted a project report (at a cost of Rs 18 lakh) to it. “I have been writing to the government to implement the project without any further delay. But, there is no response,” he said.

Source: expressindia