According to industry experts, there are an estimated 4,500 big and small diamond cutting and polishing units in Surat. However, the number of units registered with the government under Factories Act is less than 300.
Surat, the world's largest centre for diamond cutting and polishing, is home to more than 4,500 diamond units, but less than 10% of these are registered. According to industry experts, there are an estimated 4,500 big and small diamond cutting and polishing units in Surat. However, the number of units registered with the government under Factories Act is less than 300.
"Majority of the units registered under Factories Act are big and medium sized units. The number of registered small units is very small," said industry officials. While the reasons for not getting themselves registered could be many, the main factor is that unit owners fear they may have to pay provident fund and other benefits to their workers.
"Moreover, many of the diamond unit owners are not educated, and do not want to maintain documents. They also feel that hassles of registration outweigh the benefits that they may get, and hence they avoid doing so," said Dinesh Navadia, president of Surat Diamond Association.
Labour department has undertaken a number of drives to
encourage diamond units to register under Factories Act, but the results have been poor. However, the industry bodies are not losing hope, and have planned a campaign to encourage diamond units to register themselves.
The Surat Diamond Association, along with The Gem & Jewellery Export Promotion Council and District Industries Centre, Surat, have organized a seminar this month to create awareness among the unit owners about the benefits of being registered under Factories Act.
"We are confident that many more units will register under Factories Act once they learn about its various benefits," Navadia added.
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