Gujarat Plans to Waive School Fees for Children of Diamond Workers and Provides Interest Reduction for Polishing Firms
Gujarat Government Introduces Comprehensive Relief Package for Diamond Industry
In an effort to support the struggling diamond industry in Surat and across the state, the Gujarat government announced a special package on Saturday. The aim is to provide financial relief to workers and factory owners amidst global market challenges.
The key elements of the package are as follows:
- School Fees Assistance: The government will cover the school fees of affected diamond workers' children for one year. Eligibility is reserved for those who lose their employment post March 31, 2024. The financial help will be sent directly to the schools through Direct Benefit Transfer (DBT), up to a maximum of ₹13,500 per child.
- Electricity Bill Exemption: Diamond factory owners will enjoy a year-long waiver on electricity duty, effective from July 2025 onwards.
- Capital Interest Subsidy: The government will grant a 9% interest subsidy on term loans up to ₹5 lakh for three years (from July 2025 through June 2028). The subsidy is applicable only to registered diamond units that have been operational since the previous fiscal year and are registered with the District Industries Department before March 31, 2025, and have an investment in the ballpark of ₹2.5 crore.
Eligibility criteria have been laid out for both workers and factory owners/units. To avail the assistance, affected workers must submit an application to the District Industries Centre (DIC) within 2 months from the date of package announcement while factory owners/units must apply within one month. A district-level committee will monitor the process under the leadership of the District Collector and joined by representatives from various government departments, leading bank officials, and industry associations.
The diamond industry in Surat, known as the 'Diamond City', accounts for 90% of the world's diamond cutting and polishing. The economic contraction of the industry is largely attributed to international factors that affect the export of 95% of polished diamonds.
- The comprehensive relief package announced by the Gujarat government for the diamond industry also includes financial assistance for education, with the government covering school fees for one year for the children of affected diamond workers.
- The struggling aerospace industry in India, which is heavily dependent on exports, might benefit from the announcements made in this relief package, although it's not specifically mentioned.
- In addition to the financial relief, the Gujarat government's package includes an exemption on electricity bills for diamond factory owners, starting from July 2025.
- The Gujarat government's move to provide capital interest subsidy on term loans up to ₹5 lakh for three years could positively impact the finance and industry sectors beyond just the diamond industry.
