A diamond auction centre in India soon?

World's leading diamond company De Beers is mulling setting up a diamond auction centre in India, senior officials of the company said here on Tuesday.

"We are considering starting a diamond auction centre in Mumbai and our team is working on it," said Philippe Mellier, chief executive, De Beers Group.

Though Mellier did not give any time frame for it, he stated the company could go ahead with it given its viability.

"Current export and import duty structure in India is not suitable for us and we need duty-free atmosphere to start auction here," said Mellier.

"Company officials have just begun formal talks with government officials to start an auction centre in Mumbai.

“We will meet Prime Minister Narendra Modi for it if necessary," the official added.

He was speaking on the sidelines of the inauguration of a state-of-the-art diamond grading and inscription facility at Surat in Gujarat.

The facility, a statement issued by the company said, is coming up at an investment of about Rs  60 crore ($10 million).

"The facility represents a major investment in Surat, a world-class diamond cutting and polishing centre characterised by skill, innovation and the effective use of technology," the statement added.

This is the second of its kind laboratory in the world by De Beers owned International Institute of Diamond Grading and Research.

The first laboratory is located at Antwerp in Belgium. 

The company has invested about Rs 60 crore (Rs 600 million) to set up the laboratory, which is equipped with latest technology developed by Forevermark, the diamond brand of De Beers.

"Its primary purpose will be to select and inscribe Forevermark diamonds with the unique serial number that symbolises the Forevermark promise; and to deliver an accurate and reliable grading service for Forevermark diamonds. It will be able to process $500 million of diamonds annually at full capacity," the statement added.

"While the facility will initially focus on Forevermark grading, we will also look at the potential to widen the service in future as another way of supporting the surrounding diamond community," said Philippe Mellier, chief executive, De Beers Group.

Currently, the laboratory provides employment to about 95 people, who are mainly from Surat.

It is expected to generate employment for 100 more people in the next one or two years.

Stephen Lussier, CEO, Forevermark said, “This facility will offer an improved service for Indian diamantaires and for Forevermark retailers here in India and abroad.

“We can now envisage a future where polished diamonds from around the world come to Surat to benefit from this world-leading facility."

Image: An employee of Sotheby's auctioneers displays the Beau Sancy diamond in Zurich, Switzerland. The historic 34.98 carat modified pear double rose cut diamond, which has an estimate of $2-4million, goes on auction in Geneva. Photograph: Arnd Wiegmann/Reuters

The image is used for representational purpose only