Wednesday, 21 September 2016

Government decides to wind up Hindustan Diamond Company -The Total Investment & Insurance Solutions

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21 September 2016

The government on Wednesday said that it is initiating the process of winding up Hindustan Diamond Company (HDCPL). The Total Investment & Insurance Solutions

The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), to wind up the 50:50 joint venture company of the government of India and De Beers Centenary Mauritius (DBCML). 

"The winding up of HDCPL is not likely to affect supply of rough diamonds to Indian diamantaires as Indian diamond industry has grown in these years and several Indian players are sightholders with top diamond producers now," an official statement from the CCEA said.

"Also, with the objective to facilitate the constant supply of rough diamonds and to make India an International Diamond Trading Hub, the government has created a Special Notified Zone (SNZ) at Bharat Diamond Bourse, Mumbai, in 2015." The Total Investment & Insurance Solutions

The CCEA statement elaborated that at present, viewing operations are being carried out in the SNZ at Mumbai -- wherein Foreign Mining Companies (FMCs) only display their rough diamond lots to the Indian manufacturers and then take these back. The Total Investment & Insurance Solutions

"Thereafter, the sales are carried through e-auction from offices situated in other countries to Indian manufacturers. This facility has enabled even smaller Indian players to have direct access of supply of rough diamonds," the statement said. The Total Investment & Insurance Solutions

The company was incorporated in 1978 under the Companies Act, 1956. 

The company was formed to supply rough diamonds to processing industry in India, particularly to small and medium diamond jewellery exporters.


The small and medium diamond jewellery exporters had no direct access to rough diamonds from Diamond Trading Company (DTC), London -- the marketing arm of De Beers, which held a very large chunk of the world's rough diamonds market. The Total Investment & Insurance Solutions

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