Duty-Free Power for Surat Lab Grown Manufacturers
November 15, 22
(IDEX Online) - Lab grown manufacturers in Surat are to get a tax break after the state government announced they would no longer have to pay duty of up to 15 per cent on their electricity bills.
It represents a significant saving in a sector where energy accounts for almost 70 per cent of expenditure.
The move follows an announcement by the State Bank of India (SBI) in August that it would start lending to manufacturers of lab grown diamonds.
Dinesh Navadia, former chairman of GJEPC, Gujarat region, told Financial Express: "Abolishing electricity duty will enhance competitiveness of Surat-based lab-grown diamond manufacturers in the international market, especially against their Chinese counterparts."
There are now 25 lab grown diamond manufacturers in India, with an estimated 1,000 machines between them.
India produces 15 per cent of the world's lab growns, and has been calling on the government to invest and help it develop into $5.1bn-a-year industry.