Diamonds may be sourced to boost industry

The government is planning to form joint ventures in countries such as Canada, Russia and in Africa to get a steady supply of rough diamonds for the local gems and jewellery industry.

"We have identified three sets of countries from where we plan to source diamonds for the domestic industry. We are looking at forming joint ventures-based trading arrangements," Jairam Ramesh, minister of state for commerce, told reporters.

Diversifying the sources of supply is important as India was importing rough diamonds largely from Antwerp, he said.

While one set of countries include Canada, Russia and Australia, the other comprises Botswana, South Africa, Namibia, Ghana and Congo in the african continent. The third set include those in central Asia such as Azarbaijan, Uzbekistan and Kazakhstan, he said.

"I have met envoys from Canada and Russia and a delegation of state-run firms "� MMTC and National Mineral Development Corporation (NDMC) "� would soon visit these two countries to explore possibilities of joint ventures in rough diamonds," Ramesh said.

Central Asian countries were important both for diamonds and gold, he said. MMTC and NMDC have asked for geological data and would send a team to these countries, he added.

Of the african countries, the government would focus on Ghana and Congo, Ramesh said, adding he would visit Congo next month to discuss the issue with their government officials.

Ramesh, who met his Ethiopian counterpart Ahmed Tusa on Monday, said Africa was a thrust market for the government.

The India-Ethiopia joint trade committee has been revived after four years and seven major initiatives have been identified to increase bilateral trade. India's exports to Africa's second most populous country stood at about $160 million last year, but imports were only $10 million, he said.

These initiatives include exploring possibilities of enhancing the import of raw hides and skins from Ethiopia for India's leather sector. India, which imports 15-20 per cent of its pulses requirements, could also increase imports of the commodity from Ethiopia, he said.

Ethiopia has also sought participation of Indian companies in road construction projects sponsored by World Bank and African Development Bank and a team of IL&FS would visit the country to look at such a possibility.

State-run engineering major Bharat Heavy Electricals and consulting firm Wapcos may also form a consortium to undertake hydroelectric power projects in Ethiopia.

Ramesh said Ethiopia also wanted technical assistance in plantation of organic tea and the Tea Board would send a delegation to study the matter.

India has also assured assistance to Ethiopia during its negotiations for accession to the World Trade Organisation, he said.