Rajasthan govt approves proposal to set up global gemstone trading centre at Sitapura in Jaipur

The decision to set up the trading centre is aimed at promoting the gem and jewellery sector, and boosting economic growth in an environment that gives impetus to trade and investment in the sector

The Gem & Jewellery Export Promotion Council (GJEPC) has partnered with the Jewellers Association Jaipur (JAJ) to form a special purpose vehicle (SPV), Jaipur Gem & Jewellery Board (JGJB) to implement the first-of-its-kind Jaipur Gem & Jewellery Bourse ‘dream project’. This global gemstone trading centre is expected to house 1,500-2,000 units, including coloured gemstone and jewellery units, labs, banks, insurance, logistics, and security service providers among others. The foundation stone is expected to be laid in September 2023 and this will augment Jaipur’s status as the largest cutting and polishing centre for gemstones in the world.

The Rajasthan government approved the allocation of approximately 44,000 square meters of land in Sitapura at the reserve rate for the establishment and development of the Jaipur Gem and Jewellery Bourse. GJEPC-JAJ’s SPV JGJB will receive the land on a 99-year lease at a rate 3 times the industrial reserve rate (valued at Rs. 70 crore). This strategic decision is aimed at not only promoting the gem and jewellery sector but also fostering economic growth by creating an environment conducive to trade and investment in the indigenous gem & jewellery industry.

Vipul Shah, Chairman, GJEPC, said, “Jaipur is the gem capital of India and GJEPC has been pursuing the Jaipur Gem & Jewellery Bourse dream project for around a decade now. The Rajasthan government’s approval for the land allotment is a major milestone in this journey and the real implementation work starts now. A total investment of around Rs. 1200 crore is needed to implement this project. This step will pave the way for a state-of-the-art trading platform that will attract global attention and fortify Jaipur’s position as a global gem and jewellery hub. And more significantly, the project is anticipated to generate approximately 60,000 direct and indirect employment opportunities, injecting vitality into the local workforce and economy. This infusion of jobs is expected to yield a positive cascading effect, influencing various sectors and contributing to the broader socio-economic development of the state.”

Pramod Agrawal (Derewala), Chairman, Jaipur Gem & Jewellery Bourse, said, “Over 1100 members of the gem & jewellery trade associations have confirmed their participation in this dream project. The Gem and Jewellery Export Promotion Council signed a Memorandum of Understanding with the Jewellers Association, Jaipur, in 2019 to create a Special Purpose Vehicle to establish a Gem Bourse in the Pink City. The bourse is set to have state-of-the-art infrastructure, and will play a pivotal role in nurturing growth for the industry catering to both domestic and international clients.”

D.P. Khandelwal, President, Jewellers Association Jaipur, added, “We are about to enter a great new era for Jaipur’s gem and jewellery industry. The cabinet’s strong support for providing land will create new possibilities. In this new phase, the Jaipur Gem and Jewellery Bourse will not only be the foremost place for business, but also a symbol of innovation, collaboration, and economic growth.”

The SPV created by the MoU will be promoted and registered as a Section 8 company under the Companies Act, 2013, which will lead to the creation of the Jaipur Gem Bourse. The bourse will also house brokers’ chambers, a trading hall, a Special Notified Zone, Customs Clearance Centre and display shops among other facilities.

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