Gujarat Hira Bourse set to begin operations by Diwali

Construction work at the three SEZ units on final stage

Gujarat's first gems and jewellery special economic zone (SEZ), Gujarat Hira Bourse (GHB), near Surat is likely to start operations over the next three-four months, or latest by Diwali, claims officials. According to GHB sources, the construction work of the first few diamond manufacturing and exporting units are at the final stage of completion.

Out of the 297 plots allotted in the combined SEZ and domestic tariff area (DTA), around six units have already started construction work, which is expected to complete before Diwali this year.

"Out of the total 365 plots, around 75 per cent falls in the SEZ. We have allotted 297 plots and construction work is at advanced stage at three units in the SEZ. We expect commercial operations to start after the monsoon," said a senior official of GHB.

It may be noted that GHB was notified in 2007, but it failed to evoke good response from exporters to set up units. However, insiders believe that with overseas market looking attractive and sustained strength in US dollar would boost exports.

"Global economic slowdown and changes in the rules for SEZ has hampered growth. But we see in next couple of years gems and jewellery SEZ will see robust growth as the units will require to expand their operations from the existing facilities," said Chandrakant Sanghavi, president, GHB. "You get land at cheaper rate with all superior quality of infrastructure facilities. Be it expansion or setting up of new units, it will be costly at the existing diamond markets. Therefore, new units will get attracted to SEZ in coming time," said Sanghavi, who is the chairman of Sanghavi Exports - a leading diamond exporting firm in Surat. Sanghavi is also planning to set up his own unit at the GHB over the next one year.

According to trader sources, export market has shown signs of revival with new geographies opening for jewellery and diamond exports.

As per the available information, big diamond and jewellery export houses such as KP Sanghvi Jewels, Hare Krishna Exports, Karp Impex and Ram Krishna Exports are among a few companies, who have started construction for setting up units at GHB. The SEZ is spread over an area of 100 hectares will generate employment for around 1,25,000 people. GHB officials informed that the SEZ has requested for an extension of the validity period of formal approval to the Board of Approval (BoA).

"We have completed most of infrastructure work in processing/non-processing area and have incurred total expenditure of Rs 109 crores till January, 2013," the GHB official informed.