The nearly two-decade-old dream of shifting the diamond market from South Mumbai’s Panchratna to a new location in Bandra-Kurla Complex is set to be become reality on October 17. The Bharat Diamond Bourse (BDB) will be inaugurated on Dussehra.
At present, trading of rough diamonds is carried out from three buildings, Prasad Chambers, Panchratna Building and Shreeji Building, in south Mumbai’s Opera House.
“Yes, we are inaugurating the project on the occasion of Dussehra,” said Anoop Mehta, president of BDB. The inauguration will allow allottees to shift their offices to the new location.
Spread over 20 acres with a built-up area of two million square feet, BDB has eight towers, each nine storeys, housing 2,500 offices. Once the project is inaugurated, it will be one of the largest diamond trading hubs in Asia. This will be the address of India’s diamond traders and exporters and will facilitate trade — with all services available under one roof.
October 17 being Dussera and a Sunday, the Customs department would shift the following day, said Satishchandra Shah, vice-president of BDB.
According to industry insiders, it is extremely important for the Customs department to start functioning as diamond exporters require fast clearances without having to carry valuables for a long distance.
“We hope Corporation Bank and other banks will open their branches in the area soon. Negotiations are on with other banks to open a site branch,” said Shah. According to the original proposal, the complex can accommodate nearly 30 bank branches.
The complex will have 12,000 sq ft area for the Customs department, 6,750 sq ft for clearing agents, a trading hall over 6,200 sq ft and around 24,500 safe deposits vaults. Security measures will be on a par with the global markets. According to the BDB website, offices have been provisionally allotted to 2,275 companies, of which 918 are registered members. While 170,000 sq ft has been given on rent, nearly 138,000 sq ft is unallotted.
Shah said the unallotted area would be sold among the members through an auction. The first auction of 50,000 sq ft will be conducted within one week from the date of the inauguration and the rest will be sold in small lots.
The project was started by a group of Mumbai-based diamond traders in 1984 when they were allotted 20 acres by the Mumbai Metropolitan Region Development Authority on a 80-year lease for Rs 217 crore. The project initially involved public sector Minerals and Metals Trading Corporation. It withdrew from the project later.
The project originally started in 1992. But disputes between the BDB committee, its architects and contractors and payment defaults by members during the 1995-99 property slump put the project on hold in 1998. It was restarted in 2001. The construction cost of an estimated Rs 856 crore was collected from members. But, following differences among them, the project was delayed by over a decade, resulting in a 20 per cent cost overrun.
