In a bid to save the ailing diamond industry,a task force set up by the RBI has proposed a package,including lending against diamond stocks,financing procurement of rough diamonds,soft loans to workers,rescheduling of existing loans to workers and credit support to new units. Banks should examine the scope for lending against stock of polished diamonds held by units in their inventory. The RBI has issued detailed guidelines for suitable restructuring of borrowal accounts. Banks should take suitable measures to expeditiously release the benefits of restructuring, the panel said. Over 50 per cent of 2,500 diamond units shut down in and around Surat in December and January. Over 2 lakh employees out of a total four lakh workforce,mostly labourers,became jobless as diamond sales dipped across the globe following the financial meltdown. The panel said banks should consider proposals for credit support to new diamond sector enterprises,which will generate employment for the workers. Banks may also explore the possibility of financing procurement of rough diamonds from reputed agencies for cutting and polishing,to maximise employment of workers, according to the report. It also mooted soft loans with elongated repayment cycle to diamond workers,based on their identification by their employers. Diamond sector units will need to sponsor such workers to the banking system. Banks may consider rescheduling of existing housing,educational and personal loans of diamond workers on a case to case basis, it said.
