Special purpose vehicle formed to bring to life Jaipur Gem & Jewellery Bourse project

The Gem & Jewellery Export Promotion Council (GJEPC) has partnered with the Jewellers Association Jaipur (JAJ) to establish a special purpose vehicle (SPV)—Jaipur Gem & Jewellery Board—to bring about the Jaipur Gem & Jewellery Bourse project.

This global gemstone trading centre is expected to accommodate 1,500-2,000 units, including coloured gemstone and jewellery facilities, laboratories, banking institutions, insurance providers, logistics companies, and security services.

The foundation stone for the project is set to be laid this month, enhancing Jaipur's reputation as the world's largest centre for cutting and polishing gemstones, the companies said in a statement.

GJEPC is a trade organisation sponsored by the Ministry of Commerce & Industry, Government of India.

On August 30, the Government of Rajasthan approved the allocation of around 44,000 square metres of land in Sitapura, priced at the reserved rate, for the establishment and development of the Jaipur Gem & Jewellery Bourse. The SPV formed by GJEPC and JAJ will lease the land for 99 years at a rate three times the industrial reserve rate, valued at Rs 70 crore, said the statement.

On the occasion, Vipul Shah, Chairman, GJEPC, said, “Jaipur is the gem capital of India and GJEPC has been pursuing the Jaipur Gem & Jewellery Bourse dream project for around a decade now. The Rajasthan government’s approval for the land allotment is a major milestone in this journey and the real implementation work starts now.”

A total investment of around Rs 1,200 crore is needed to implement this project, added Shah.

He also said this initiative would pave the way for a state-of-the-art trading platform, which would draw global interest and reinforce Jaipur's standing as a prominent global centre for gem and jewellery.

The project is expected to create around 60,000 employment opportunities, both directly and indirectly, influence various sectors, and contribute to the broader socio-economic development of the state.

Pramod Agrawal (Derewala), Chairman, Jaipur Gem & Jewellery Bourse, said, “Over 1100 members of gem and jewellery trade associations have confirmed their participation in this dream project. The GJEPC signed a MoU with the Jewellers Association, Jaipur, in 2019, to create a SPV to establish a gem bourse in the Pink City.

"The bourse is set to have state-of-the-art infrastructure and will play a pivotal role in nurturing growth for the industry, catering to both domestic and international clients.”

D.P. Khandelwal, President of Jewellers Association Jaipur, said, “The Jaipur Gem and Jewellery Bourse will not only be the foremost place for business but will also be a symbol of innovation, collaboration, and economic growth.”

The SPV will undergo promotion and registration as a Section 8 company in accordance with the Companies Act, 2013, which will lead to the establishment of the Jaipur Gem Bourse. The project will encompass various amenities, including brokers' chambers, a trading hall, a special notified zone, a customs clearance centre, and display shops.

Last month, GJEPC had organised Indian International Jewellery Show Premiere 2023, a six-day event in Mumbai, where more than 1,800 exhibitors from the gold, silver, platinum, natural diamonds, lab-grown diamonds, and precious and semi-precious stones industries showcased their products to attendants from across the country.

Around 65 countries and 2,000 international buyers had participated in the event.