Surat Diamond Bourse, - An Eye Wash

Surat is In News for Ground Breaking Ceremony of New Diamond Bourse, Everywhere you will find Posters and Banners, Land Being Allocated, Ministers Faces is thrown in On Every Corner and Now We Have Ground Breaking Ceremony, Everything Happening So Soon - So Fast, or is it Too Little and Too late, Diamond Industry is in Surat for More then 30 Years, and Trading is in Mumbai, from the date diamond markets have existed

[caption id="" align="alignnone" width="596"] Surat Diamond Bourse Model[/caption]

Lets Go Back in Some History, Surat Traditionally Was a Small City with Population less then 500K, And Land Area almost 1/10th of What it is Today, With Traditional industries of Textile and Jari, By 1990s Diamond Industry Flourished in Area Called Varacha Road, And People From Northern Part of Gujarat Migrated Here, and with that we saw Exceptional Growth in All 3 Industries, Textiles, Diamond and Jari,

Diamond Markets, Manufacturing and Trading is Traditionally Based Northern Surat, Its Highly Dense Community with large Factories and Exceptional Work Culture, Which has No Relation or Direct Connection with new Surat Diamond Bourse Development,

There are Several Facts which are required here to understand, Why Surat Diamond Bourse is rather an Initiative and Indirect Support for Builders, rather then providing support to Diamond Industries, and Contributing to Growth of Surat

Over the Period of Time Diamond and Other Industry in Surat has Grown to Become Giant, Then Came Hazira Industrial belt, and During Same period and During Late 1990s, Joint Families Converted to More Nuclear House hold, Which all of this Surat, Started Growing and Land Prices have started Increasing at Pace Never Scene Before,

Land Price for Dumas Road, Piplod in 2004 was 8500 Rs/ Sq Yard has Increased in 2015, to 1,50,000.00 Rs/Sq Yard, which 1765% Increase in 10 Years, So Technically Increase 176% Per Year. This Price Increase created Many Riches, During this time over 10 Years, Various Industries had Scene Various Life Cycles of Growth, Some time Down time etc, and With INC At Helm at Center was Hampering Growth,

People and Industries were looking for Safe Investment in Surat, and Only Option they Could find as Safe was Land, Before that they were rather investing in Crude Trading But After Fluctuation and Few Misgiving, It stopped, SO Industrialist, Diamond Merchants, Textiles Barons, Every One Started Investing in Land, and Started Construction of Building in partnership with Builders,

With Sudden Support from Politicians, and Easy Access of Funds From Bank, Project Started at Fast Pace, and residential and Commercial pricing also increased, With this Came Traders and Investors to Property market, Who were Not real user, and rather using Property as Commodity rather then investment, This Further Jacked Up the Pricing and today, We are sitting on Bomb Of Real Estate Like United States, Since Normal Buyer Can not Afford Home At this Pricing, repayment Periods For Loans Have increased from 10 to 30 Years, and Even Construction Cost has Gone Up to 750 Rs. A Sq Feet and Interior at rather 3000 Rs/Ft, for High End Residences,

All of Above Factor Made Property Unviable Business, and During 2013-2014 Diamond Market Started Facing Slack, So Once Cash Cow, Now Needed More Cash, But all of those Cash was Stuck Up in Properties, which Remain Constant and Inventories were unsold,

So Came an Idea of Diamond Bourse, If A Diamond Bourse is Developed On Government Land, All properties Around that and Near By area, Would have new Demand, Subject to Diamond Merchants are Ready to Migrate to Surat, and Those Ailing Diamond Industries Can Rather Sell their Investment in property and Get Their Share of Cash and Get Debts of From their Books, and Get Fresh Line of Credit at New Cheap Rates,

This all is Done At an Expense of Ex Exchequer and Tax Payer, Which i believe is Considerably Wrong, Government, politicians and Business Nexuses Are do pressurize Banks, to give Large Credit and Construction By far remains on of the Corny Business, and an Efficient tools to Invest Black Money,

Few Other Major Factors For Diamond Bourse Being An Eye wash is, Traditionally, Manufacturing is always Separated from Trading Market, and Diamond is Not a Commodity which carries a Huge Transportation Risk or Cost,  Also Surat Does not even have Full Fledged Airport and Cargo and Custom Complexes for Development on Diamond Bourse,

I think Every One will agree that Narendra Modi is a Visionary, and During his CM Tenure Diamond Bourse never Came in to Existence but as soon as CM is Changed Diamond Bourse Became Reality at an amazing Pace, and only to raise give new life line to Most Corny and Shady Construction Business and Property Investment or rather to protect interest of those whose Black Money is Invested in those Land parcel,

Let me know your views,