Gujarat’s Surat Diamond Bourse (SDB), which Prime Minister Narendra Modi opened with ceremony in December 2023, now stands as a ghost structure on the outskirts of Surat.
After missing previous deadlines, SDB management set a goal of having at least 1,000 diamond enterprises working out of its campus by Diwali this year.
However, almost a year after its grand launch, the SDB remains practically vacant, with only eight enterprises operating from its premises.
The spaciousness of SDB
The SDB, which surpassed the Pentagon in the US and covered 64 lakh square feet, was billed as the largest office building in the world when it was constructed at an astounding cost of Rs 3,200 crore.
Situated in Khajod hamlet, the structure can house 1.5 lakh people and contains 4,500 office spaces.
Though the Gujarat government and the SDB administration have made multiple attempts, the multi-crore project is still far from becoming the “one-stop destination” for the Indian diamond trade.
Leaving SDB
By February 2024, some 250 businesses had moved to the SDB, including one of the biggest diamond enterprises in the nation, Kiran Gems & Diamonds, located in Mumbai.
Only eight businesses remained in the SDB by August of this year after the majority of them left.
Given that Vallabh Lakhani, the chairman of Kiran Gems & Diamond, also chairs SDB, the company’s departure is viewed as a major blow to the organization.
Mumbai has greater potential.
Vice President of SDB Ashish Doshi told The Federal, “We had expected that by Diwali this year more traders, especially from Mumbai, would shift to SDB but it seems that will not be easy.”
We had discussions with a few businesses that had decided to move their operations from Mumbai’s Bharat Diamond Bourse (BDB). The SDB’s space and amenities were the main factors in their willingness to relocate.
“But now that BDB announced the expansion of its office space in January, none of them are willing to move,” Doshi continued.
Authorizing woo dealers to offer alcohol
To generate interest in diamond firms, the Gujarat government even entertained the idea of allowing alcohol on SDB property in July.
A diamond businessman from Surat who moved his operations out of SDB in March told The Federal, “The state government was looking to dilute prohibition laws for the Surat Diamond Bourse after having permitted liquor in the GIFT City in Gandhinagar.”
“The management of SDB was consulted by the Gujarat Home Ministry, and they concurred that relaxing the ban on alcohol could have advantages and could be a significant step in drawing in additional business. Nevertheless, neither the locals nor the traders in Mumbai responded favorably to the news. “The idea was abandoned,” he continued.
Problems with infrastructure
The merchant continued, “The location is about 30 km out of the city, and the area has no facilities like buses, autorickshaws, food stalls, and medicine shops around it.”
“My employees had trouble getting to this office most days. Workers from the Varachha area of Surat could travel to Khajod twice a day for free via bus. However, he continued, asking anonymity, “if any worker missed the bus, he was on his own, with no public transport plying between the city and Khajod.”
About 10,000 diamond offices may be located near Surat in the areas of Varachha, Mahidhapura, and Katargam; these are all at least 30 kilometers away from SDB. There is no public transportation connection between Khajod and Surat city.
How to go to Khajod
Workers can either bring their own cars or use the expensive private taxi service, which is not available on a regular basis. It is anticipated that the Khajod Metro service would be finished by December 2027.
If the SDB is to be successful, the necessary infrastructure must be in place. Before the inauguration, the government had to have made sure that there were adequate transportation and export facilities in place, according to Surat-based diamond dealer Dinesh Nevadiya, a former regional head of the Gem and Jewellery Export Promotion Council, who spoke with The Federal.
“An other concern is that the SDB set retail prices based on its goal of attracting large traders to the market. The cost was too high for medium-sized and small-scale vendors. Approximately 60% of all traders are small and medium-sized traders.
Surat airport, the poor compared of Mumbai.
Another challenge for diamond traders has been the absence of a 24×7 operating international airport in Surat.
Seven months before the SDB was inaugurated, the Surat airport was designated as an international airport. However, the airport only operates 35 flights each day, compared to over 1,000 from Mumbai’s Chatrapati Shivaji airport.
“What’s the point of moving operations to Surat if you have to travel to Mumbai to export your product?” queried a diamond trader from Mumbai.
Mumbai has additional conveniences
“International customers can take advantage of amenities at the BDB (in Mumbai); the only disadvantage was the lack of space. As it continues to grow, diamond dealers are eager to reserve additional stores at BDB.
.Discretion, security, and maintaining customer confidentiality are essential in the diamond industry. However, if we go to Surat, the main method of getting diamonds from Surat to Mumbai will be by train, which takes around four hours and won’t be a covert operation, he continued.
