Surat: Diamond industrialists have shown limited enthusiasm ahead of the proposed opening of offices at the Surat Diamond Bourse (SDB) from January 23, citing poor air connectivity and additional financial burden as key concerns.

Despite repeated assurances prior to the inauguration, Surat Airport still lacks direct air connectivity with Mumbai, the country’s financial capital. Earlier projections had also included international flights from Surat to major global diamond and jewellery hubs such as Singapore, London, New York, Brussels, Botswana, Doha, Shanghai, Istanbul, Riyadh, and Tel Aviv. However, not even a single weekly international flight catering to the diamond trade has materialised so far.

In this scenario, traders dealing in natural diamonds—primarily operating from the Varachha and Mahidharpura diamond markets—are reluctant to incur the additional cost of opening offices at the SDB. Industry sources indicate that, to avoid political embarrassment, around 100 to 125 companies engaged in lab-grown diamond trading may open offices on January 23. Even then, only about 200 offices are expected to be operational against the total capacity of 4,200 offices.

Following a meeting held on July 29, 2025, in the presence of the Deputy Chief Minister and then MoS Home and Industries, Harsh Sanghvi, it was agreed that all offices at the Surat Diamond Bourse would commence operations from January 23, 2026. However, progress on the ground remains slow.

It may be recalled that Vallabhbhai Lakhani of Kiran Gems, one of the key persons involved in the SDB project, was among the first to shift operations from the Bharat Diamond Bourse in Mumbai to Surat. His move, however, failed to trigger large-scale migration. Lakhani later resigned as SDB President and shifted back to the Bharat Diamond Bourse in Mumbai.

Subsequently, Rajya Sabha MP and SDB Committee Chairman Govind Dholakia, along with Arvind Ajbani, made an unsuccessful attempt to start operations at the bourse before Dussehra in 2024. Over time, branches of nationalised and private banks shut down at the SDB campus, while facilities such as the Amul Parlour and Sumul brand restaurant were also closed.

Hope for More Offices to Become Operational

SDB Committee Vice Chairman Laljibhai Patel said there is hope that more offices will become functional in January. Committee President Arvind Shah stated that furniture installation work is underway in several offices and traders will relocate once it is completed.

Around 200 major diamond traders currently operate from Mahidharpura, while at least 2,000 other traders and brokers also conduct business from the area. Efforts are ongoing to encourage them to migrate to the Surat Diamond Bourse.

Diamond Export Facility

The Gem and Jewellery Export Promotion Council (GJEPC) has made representations to customs and airport authorities to strengthen infrastructure for precious cargo operations. Under the current arrangement, after customs clearance at the SDB, diamond consignments are transported directly to Mumbai airport for international export.

The Surat Diamond Bourse, developed at a cost of Rs 3,400 crore, is one of the flagship projects under Dream City and is envisioned as a global diamond trading hub on the lines of the Bharat Diamond Bourse in Mumbai. At present, only about 40 to 50 offices are operational.