Vibrant Gujarat brings no glitter for jewellery

It may have rained investment during the Vibrant Gujarat Global Investors' Summit 2007. But not in one of the state's biggest industrial sectors, Gems and Jewellery.

The reason: the proposed gems and jewellery special economic zone at Icchapore near Surat, which had already cornered most of the investment.

Said Sanjay Kothari, chairman of Gems and Jewellery Export Promotion Council (GJEPC), "The gems and jewellery sector did not see any new investment during Vibrant Gujarat as most of the investment had already been committed in the Icchapore SEZ in 2003. Any fresh investment can be expected only after the SEZ shapes up."

The SEZ, which was to be commissioned in 2006, will, however, take another two years for completion.

According to Nanubhai Vanani, secretary of Gujarat Hira Bourse (GHB) and developer of the SEZ, as much as Rs 4,600 crore investment was committed during 2003 in the SEZ.

"Investment in the industry is a continuous process. Owners of the units keep investing to expand and upgrade their facilities and anyway Rs 50-100 crore investment is hardly worth signing an MoU."

The GHB and the Gujarat government signed a memorandum of understanding in 2003 for the setting up of the jems and jewellery SEZ, at a total investment of $7200 million. The feasibility study of the project was conducted by Ernst & Young. The SEZ is planned over 97 hectares and more than 280 gems and jewellery members have enrolled in the park to set up around 200 units.

The GHB had announced in 2004, during the bhoomi pujan performed by Gujarat chief minister Narendra Modi, that 340 jewellery manufacturers had paid Rs 5 lakh each to form the seed capital for the jewellery park.

The GHB also said that the SEZ would become functional by 2006.

Talking about the present status of the project, Vanani said, "We have got the formal approval. However, the park is yet to be notified as SEZ and it is likely to be completed within the next one-and-a-half to two years."

Chandrakant Sanghavi, president of the GHB, on the delay said, "Around 50,000 square yard land, identified for the SEZ is still on the government's name. This land has to be handed over to the Gujarat Industrial Development Corporation (GIDC). After GIDC gets the land they can alott the plots for units."

"It's a new concept, in fact, first-of-its kind across the globe and is not based on any model. It has been conceptulised and is being implemented here, so planning of such projects needs a certain time. At the moment, we are still charting out the plans," Sanghavi said.