Surat: Senior govt officials and key lab grown diamond (LGD) industry players met in Gandhinagar recently to discuss priorities and policy expectations, amid rising interest in new project locations driven by power and capital incentives.The meeting followed the Odisha govt’s recent announcement of signing MoUs with Surat and Mumbai-based LGD companies. With Odisha offering attractive concessions in electricity tariffs and capital subsidies, several LGD units are exploring the state as a potential destination for upcoming projects.Electricity is considered the single biggest operating cost in LGD industry. Participants said Odisha’s power-related incentives have made it a serious option for expansion. Apart from the firms that have already signed MoUs, others are also in talks with the Odisha govt for setting up operations, according to industry sources.The Gandhinagar meeting was attended by chief secretary Manoj Das and additional chief secretary (industries) Mamta Verma. Industry leaders from Surat such as Velji Sheta, Manish Navadiya, Mukesh Patel, Manish Jivani, Ashish Lakhani and others also attended the meeting.“It was a very fruitful meeting with govt officers and we are hopeful of some important development in connection with a policy related to LGD industry. Govt officials wanted to understand our viewpoints and the govt is looking at it positively,” said Velji Sheta.Vallabh Lakhani said that the discussion focused on industry expectations and that representatives presented key suggestions. “It is important to note that the govt is working on policy for lab grown diamond industry positively,” he said.An industry source added that discussions were specifically centred on the LGD segment and participants were hopeful of an early outcome in the form of a supportive policy framework.With Surat-based companies holding strong capabilities in key parts of the LGD value chain, other states are now moving in to attract fresh capacity and investment tied to India’s leadership in diamond manufacturing.Odisha has emerged as a new destination for proposed LGD projects after offering incentives that manufacturers say significantly improve operating economics. Industry executives cited subsidy in power tariff, exemption in power duty and capital subsidy as the main factors driving interest in the state. Across companies, planned investment is estimated at around Rs 10,000 crore, with industry participants indicating the figure could rise as additional players join the industry. The proposed projects are expected to generate roughly 8,000 jobs.
