Interest Subsidy, Electricity Duty Exemption For Slowdown-hit Small Diamond Units In Gujarat

Financial Aid for Micro Units

Minister of State for Industries, Harsh Sanghvi, introduced the relief package and outlined its key provisions. The most significant component is a 9% interest subsidy on loans up to Rs 5 lakh, which will be offered for a period of three years, from July 1, 2025 to June 30, 2028. Additionally, all eligible units will receive a one-year exemption from electricity duty, also starting from July 1, 2025.

Units seeking to benefit from the package must submit their applications to the District Industries Center (DIC) within one month of the notification’s publication. The application must be accompanied by key documents, including the unit’s business registration, GST registration, loan approval letter, turnover details for the last three financial years, and electricity consumption proof.

Eligibility Criteria for Industrial Units

The package specifically targets micro units which meet the following conditions:

● Investment in plant and machinery must not exceed Rs 2.5 crore.

● The unit must have been engaged in the diamond industry during the last three financial years (2022–23, 2023–24, and 2024–25).

● There must be a minimum 25% reduction in electricity consumption in 2024–25 compared to 2023–24.

● Business registration must be completed on or before March 31, 2025.

These measures are intended to encourage operational efficiency while providing a financial cushion to struggling businesses.

Support for Children of Unemployed Gem Artisans

Recognising the socio-economic impact on workers’ families, the government has also announced special school fee assistance for the children of the artisans who lost their jobs after March 31, 2024. Under this scheme, 100% of school fees, up to Rs 13,500 per child, will be covered for one academic year.

The fee amount will be disbursed directly to the schools through Direct Benefit Transfer (DBT), in alignment with the Education Department’s procedures. This will ensure uninterrupted education for the children of affected workers and minimising the long-term fallout of economic distress on families.

A Step Towards Stability and Recovery

With this multi-pronged support plan, the Gujarat government seeks to provide immediate relief while creating a pathway for recovery in the diamond industry. It tries to address both operational challenges and the social welfare needs of its workforce.