Alrosa and India’s Gem & Jewellery Export Promotion Council (GJEPC) have inked an agreement to let the Russian miner sell diamonds in India at preferential tax rates.
A memorandum of cooperation (MoC) between the two parties, signed in the presence of Indian Prime Minister Narendra Modi and Russian President Vladimir Putin, states that the GJEPC will work to establish a special tax regime for Alrosa so the rough producer can carry out direct sales at the India Diamond Trading Centre (IDTC) in Mumbai. The IDTC is a zone in the Bharat Diamond Bourse that was established in 2015 to let traders source rough directly from miners.
Additionally, ALROSA would be able to set up a representative office in the bourse, which could later become a sales office.
“The GJEPC has [long] been encouraging diamond mining companies to sell rough diamonds directly to the Indian market, and the MoC may well be the first step to realizing this goal,” said GJEPC chairman Praveenshankar Pandya, who signed the memorandum alongside Alrosa president Sergey Ivanov.
The two parties also pledged in the agreement to exchange more data and technology, commit to the promotion of diamonds on a generic level, and ensure natural and synthetic diamonds were kept separate.
“We see great prospects for the expansion of trading activities in [India], including through the special notified zone at Bharat Diamond Bourse,” Ivanov said. “I believe a long-term partnership with such an authoritative organization as the Gem & Jewellery Export Promotion Council will be of great importance to the expansion of Alrosa’s export opportunities in India and development of cooperation with local manufacturers.”