The Ministry of Commerce & Industry said it has received approval from the Cabinet Committee on Economic Affairs for initiating the process of winding up of Hindustan Diamond Company Private Limited (HDCPL) a 50:50 joint venture of the Government of India and De Beers Centenary Mauritius Limited.
The winding up of HDCPL is not likely to affect supply of rough diamonds to Indian diamantaires as Indian diamond industry has grown in these years and several Indian players are sightholders with top diamond producers now, said the Ministry.
With the objective to facilitate the constant supply of rough diamonds and to make India an international diamond trading hub the Government has created a Special Notified Zone (SNZ) at Bharat Diamond Bourse in Mumbai, added the government.
At present viewing operations are being carried out in the SNZ at Mumbai wherein foreign mining companies only display their rough diamond lots to the Indian manufacturers and then take them back.
Thereafter the sales are carried through e-auction from offices situated in other countries to Indian manufacturers.
This facility has enabled even smaller Indian players to have direct access of supply of rough diamonds, the government said.
The HDCPL was incorporated in 1978.