CCEA approves Hindustan Diamond Company's closure
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has given its approval to initiate the process of winding up of Hindustan Diamond Company Private Limited (HDCPL). The company is a 50:50 joint venture of the Government of India and De Beers Centenary Mauritius Limited (DBCML).
The HDCPL was incorporated under the Companies Act, 1956 in 1978. The objective of formation of the Company was to supply rough diamonds to diamond processing industry in India, particularly to small and medium diamond jewellery exporters, who had no direct access to rough diamonds from Diamond Trading Company (DTC), London, the marketing arm of De Beers who held a very large chunk of world’s rough diamonds market. "The winding up of HDCPL is not likely to affect <g data-gr-id="12">supply</g> of rough diamonds to Indian traders as Indian diamond industry has grown in these years and several Indian players are sight holders with top diamond producers now.
"Also, with the objective to facilitate the constant supply of rough diamonds and to make India an International Diamond Trading Hub, the Government has created a Special Notified Zone (SNZ) at Bharat Diamond Bourse, Mumbai in 2015," said an official.