Following the meltdown and falling situation of the diamond industry, the Centre has decided to abolish 4 per cent import custom duty on rough diamond and also on re-cut diamonds. Earlier, the NDA government had imposed a very high import duty of 35 per cent on rough diamonds.

Leader of Opposition Gohil, while addressing a media briefing, said: “We made a representation to the Central government about the scene of diamond industry. The Central government has decided to abolish 4 per cent import custom duty on rough diamond and also on re-cut diamonds. The state government has given nothing to the diamond industry. We have done our work and now the state government has to come forward and take some step.”

He added: “We welcome the new industries in the state but in case of Tata’s Nano project, the state government has helped it in all possible ways like giving loan at 0.01 per cent for 20 years, abolishing various taxes. Also, the power charges have been given as per government rates. All these things have been exempted only for the Nano project, so why not for the diamond industry?”

State Congress president Siddharth Patel said, “In 2003, during the International Convention of Garment, Gems and Jewellery, Modi had made several announcements like setting up of a Jewellery Park, an education institution for Gems and Jewellery in Surat. But in reality, everything has fallen flat. Recently, at Sparkle 2008, Modi had again promised to upgrade the gems and jewellery industry, but nothing has been done for the diamond industry.”

He added the Central government has taken steps for the benefits of the industries. Two packages are ready, while the third is in the pipeline.