Hyderabad Gems Special Economic Zone.

The Gitanjali Group-promoted Hyderabad Gems Special Economic Zone Ltd (HGSEZ), has received the final approval from the central government. The SEZ to be set up at a cost of about Rs 500 crore, is expected to be fully operational by the end of 2008.

The 200 acre park in Shamshabad, will feature an international trade centre, a world class convention centre plus an exhibition area.

The gems special economic zone will also provide a diamond trading bourse along with the regular facilities of an SEZ. The dimond bourse will be the second in the country besides the Mumbai-based Bharrat Diamond Bourse.

Once operational, the project will register an estimated turnover of Rs5000 It is also the first park in the country to have integrated manufacturing as well as a trading zone. This zone will also include a technical institute to provide trained personnel for upcoming units therein.

Special purpose vehicle planned for Hyderabad Gems Park; KPMG enlisted A MALAYSIAN firm IOI, Mumbai-based Geetanjali Group associated with Nakshatra range of jewellery and the Andhra Pradesh State Trading Corporation, will form a special purpose vehicle (SPV) to be associated with the proposed Gems and Jewellery Park, planned to come up in Hyderabad. The Major Industries Minister, Mr K. Vidhyadher Rao, told Business Line that the Rs 300-crore Gems and Jewellery Park will be located in a special economic zone. "We have enlisted the services of consultants KPMG to expedite the project and help us in attracting more companies to the gems park". As a part of this project, the consortium will also train boys and girls in jewellery making, cutting and polishing of precious stones. Most of this gems and jewellery trade is family business and outsiders generally do not get an opportunity to take up skilled tasks other than marketing.

Mr Rao said that eight major companies have thus far approached the Government to be part of this innovative project. About 25,000 people are expected to be part of this initiative in terms of job opportunity. "The State Government has recently received an innovative proposal to establish a set top box manufacturing facility from a German company. This will be an advanced state-of-the-art set top box unit and will enable people to hook up to their television sets and browse the net as well. We expect a number of applications even within the State particularly for community TV sets and education applications. Details of the project are being worked out," Mr Rao said.

"We are at advanced stage of negotiations with the German company, and if things work out as per plans, we could have this company establishing a set top box assembly line in the State. These are currently priced at about 60 to 80 euros," Mr Rao explained.

Chief Minister Y.S. Rajasekhara Reddy on Sunday said the Rajiv Gems Park, coming up in the special economic zone on the city outskirts, would provide direct employment to more than 50,000 people in the coming years.The Chief Minister, who performed `bhoomi puja' for the park, being promoted by Gitanjali Group, told reporters that the Government decided to allocate 200 acres of land for gems and jewellery industry of which 75 acres were already given to the promoters.

Gitanjali Group, one of the major players in the field, was also setting up a training institute and laboratory in the park. More than 20 companies with a head count of 1,000 each would set up their units in the park in the first year itself, he said.

While the company had plans to complete the first phase of the project by the end of next year, Dr. Reddy wanted the promoters to complete it by June next. On naming the park after former Prime Minister Rajiv Gandhi, he said the Nehru family was closely associated with precious stones. "The first one Motilal Nehru had a pearl in his name while Jawaharlal Nehru, a gem. The full name of Rajiv Gandhi is, in fact, Rajiv Ratan Gandhi which had a diamond in it," he said.

Gitanjali Group Chairman and CEO Mehul Choksi said that gem and jewellery export was one of the major foreign exchange earners for the country amounting to a huge US $ 16 billion. "More than 90 per cent of gems are polished in India while the exports constitute only 3 per cent," he said. The industry was providing employment to more than 35 lakh people and most of the operations were concentrated in Gujarat and Maharashtra. The park in Hyderabad was situated at a strategic location fulfilling all logistical requirements for the company.

The company would invest Rs. 100 crore in the SEZ and several major players, including some of the `sight holders' of the Diamond Trade Council evinced keen interest in setting up their ventures here. The upcoming facility would house cutting and polishing units, testing laboratories, certification centres, banks, merchandising centres and other services relevant to the trade. .