MMTC, Russian diamond company in JV talks

Negotiations between public sector Minerals and Metals Trading Corporation (MMTC) and Russian diamond company Alrosa are in an advanced stage and a joint venture is expected to be finalised soon.

The forthcoming visit of Russian President Vladimir Putin (the chief guest for the Republic Day 2007 celebrations) will give an added momentum to this process, Minister of State for Commerce Jairam Ramesh said today. The proposed joint venture seeks to increase the country's access to rough diamonds in Russia.

"Negotiations between the two companies are in an advanced stage and we could expect the finalisation of a joint venture in 2007," said Ramesh.

The government is also talking to other countries, such as Canada, Australia, South Africa, Namibia, Lesotho, Botswana, Ghana, Angola, Azerbaijan, Armenia, Uzbekistan and Venezuela, to ensure regular supply of rough diamonds for the country's gems and jewellery industry that imports $8 billion (Rs 36,000 crore) worth of diamonds every year.

Assured and possibly cheaper diamonds would be a boost for the domestic industry's long-term sustainability. "The diamond sector accounts for 80 per cent of total exports of gems and jewellery and is estimated to employ close to 10 lakh artisans and workers, both directly and indirectly," said Ramesh.

In parallel, efforts are also on to develop sources of diamonds within the country. According to Ramesh, preliminary explorations carried out by global companies in Madhya Pradesh, Chhattisgarh and Andhra Pradesh have revealed good prospects for diamonds and coloured gemstones. Recently, Commerce Minister Kamal Nath had said the government may allow 100 per cent FDI in mineral prospecting to bring in the latest technology in the field of mineral exploration.

Ramesh also feels that owing to the strong position of India in global diamond trade, the country could very well become the chairman of the Kimberly process, which is a global initiative to stop conflict diamonds from entering the market.

The commerce ministry is also implementing the Vision 2015 recommendations of the Gems and Jewellery Export Promotion Council. The document takes into account growing competition from China, rise of new materials such as palladium and steel, development of synthetic diamonds, consolidation in the world diamond industry and growth of new cost-effective cutting techniques.

BRIGHT FUTURE

THE JV seeks to increase the country's access to rough diamonds in Russia

THE GOVT is also talking to Canada, Australia, South Africa, Namibia, Lesotho, Botswana, Ghana, Angola, Azerbaijan, Armenia, Uzbekistan and Venezuela

THE COUNTRY imports $8 billion (Rs 36,000 crore) worth of diamonds every year