Mumbai, Feb 8 (KNN) The Gems & Jewellery Export Promotion Council (GJEPC) has intensified measures for corporatization of MSME units in diamond cutting and polishing, said its Chairman Praveenshankar Pandya.

He was speaking at a financing seminar recently conducted by GJPEC.

India polishes about 14 out of every 15 diamonds in the world; over 70% in value of diamonds globally and is a classic example of Make in India industry.

Addressing the inaugural session, Pandya said, “The Indian diamond sector cuts and polishes a billion pieces and gets USD 6 bn from India and around USD 5.5 bn from international banking channels. The support of the banking & finance sector will be crucial for the future growth of the gem & jewellery sector.

According to a press release, Pandya said, “Different banks charged different rates which ranged between LIBOR + 2% to LIBOR +6%; and added to that were other charges. Banks using ECGC cover as that added to the  burden and had, in some cases, raised the cost of finance by five times. There is a need for a standardized structure.”

To make the sector further organised, and to enable banks to get concrete information to do the right due diligence while sanctioning credits, GJEPC has intensified measures for corporatization of MSME units in diamond cutting and polishing, Pandya said.

Bankers have a great opportunity to provide financing for the MSME sector, which constitutes one third of the total business thereby bringing them to the mainstream. One of the important steps taken by the GJEPC to further improve transparency in transactions in the sector is starting a KYC online networking platform for the diamond industry.