The Gujarat government on Saturday announced a special package for the diamond industry under which it will pay school fees for workers' children for a year and offer interest subsidy on capital for polishing units.

Minister of State for Home, Harsh Sanghavi, made the announcement in ‘Diamond City' Surat, where 90 per cent of the world's diamonds are cut and polished. The diamond industry has been hit by a slowdown due to international factors.

Under the special package, the government will pay school fees for the children of the affected diamond workers for one year. While polishing units will get exemption from electricity duty for a year, the government will offer an interest subsidy for three years on a capital of Rs 5 lakh.

Sanghavi called the package an important step to provide financial relief to the diamond workers and polishing units in the state and to maintain the stability of the industry.

According to those in the business, since 95 per cent of polished diamonds are exported, global factors affect the sale of this luxury item. Nearly 4,000 polishing and processing units in Surat employed about 10 lakh people, an industry insider had told PTI last year.

“100 per cent of school fees, subject to a maximum of Rs 13,500 per child, will be paid for one year. This financial assistance will be sent to the schools through direct benefit transfer (DBT) as per a scheme of the Education Department,” said Sanghavi.

Diamond industry workers who lost their jobs after March 31, 2024, will be eligible for this assistance, the minister said. To qualify, workers must be over 21 years of age and have at least three years of experience working in a diamond factory, he said.

To avail the assistance, affected workers must apply at the District Industries Center within 2 months from the announcement of this package, said an official release.

Announcing relief for micro diamond units, having investment in plant and machinery up to Rs 2.5 crore, Sanghavi said an interest subsidy of 9 per cent will be given to these factories for three years on the term loan capital of Rs 5 lakh.

Moreover, these units are exempt from paying electricity duty for one year from July this year, he said.

The units desirous of availing this assistance will have to apply at the District Industry Center within one month, said the release.

Courtesy: Rediff