At a time when the diamond industry in Gujarat is passing through an unprecedented crisis, the government has mooted a proposal for a special package to revitalise the gems and jewellery sector in the state.

The Industries and Mines department has drafted a Government Resolution (GR) that contains various schemes of assistance proposed to be extended to new as well as existing industrial units in the gems and jewellery sector. The sector has the potential to put Gujarat on the national and international map, with the state accounting for 80 per cent of the total diamonds processed in India.

The department will soon send the draft GR to the government for its approval. The schemes proposed in the draft will remain in force for five years since the date of its issuance, sources in the department told Newsline on Tuesday.

As per the draft document, gems and jewellery units will be provided credit link subsidy of 10 per cent on eligible fixed capital investment subject to a ceiling of Rs 15 lakh. This subsidy will be in addition to any other support provided by the state and the Central governments.

It is also proposed to extend financial assistance for setting up hallmark certification and gem testing centres. A provision for assistance at 50 per cent of the eligible fixed capital investment, limited to Rs 35 lakh, has been made for setting up a hallmark certification centre, and Rs 25 lakh for gem testing centre.

It envisages providing assistance to gems and jewellery units that duly maintain safety measures/equipment to protect workers against occupational health hazards. The assistance will be at 50 per cent of the cost of safety measures/equipment, limited to Rs 500 per worker. The government will also provide need-based support for setting up a gems and jewellery national-level training institute in the state.

It is also proposed to extend support for setting up a gems and jewellery park on the public-private partnership (PPP) model. Such a park will be provided financial assistance by way of viability gap funding through the Gujarat Infrastructure Development Board.

A committee headed by the State Industries Commissioner is proposed to be set up to sanction proposals moved by unit owners seeking assistance.

Other members will be additional secretary/jt secretary/dy secretary (from the Industries and Finance departments), general manager (iNDEXTb), director (Indian Diamond Institute) and president (Gems and Jewellery Trade Council of India).