Surat: The city’s fast-growing lab-grown diamond (LGD) industry is preparing to invest around Rs 10,000 crore in Odisha, with leading manufacturers drawn by attractive power and capital subsidies. The move underscores intensifying competition among states to capture a share of India’s expanding LGD sector as the country strengthens its position against global rival China.The Diamond City is stepping up its push as the lab-grown diamonds sector expands and India seeks to consolidate its edge. With Surat-based companies holding strong capabilities across key segments of the LGD value chain, other states hope to draw new capacity and investment linked to the industry’s growth.Odisha has emerged as a preferred destination for proposed LGD projects after offering incentives that manufacturers say significantly improve operating economics. Industry executives cited subsidies in power tariffs, exemption from power duty and capital subsidies as the main factors.Several leading diamond manufacturing firms from Surat have initiated processes to set up facilities in Odisha. Companies including Kira Diam, Anjali LabTech, AVP Star and Grow Magnificent have begun developing manufacturing operations in the state. Dholakia Lab Grown Diamond has also started evaluating the incentive package and planning investments.Kira Diam chairman Vallabh Lakhani said, “We have proposed to invest around Rs 7,000 crore considering the subsidy advantages. Capital subsidy and benefits on power are major attractions.” Kira Diam is among the top LGD manufacturers, with a significant share of its stones grown in Surat for global markets.According to industry sources, some manufacturers have received letters of approval to begin formal procedures, while at least two companies have started work on facilities with 1,000 reactors in the initial phase — a significant indicator of scale in lab-grown diamond production.Anjali LabTech chairman Rajni Radadiya highlighted the importance of energy costs in the sector. “Electricity is a raw material in the growing of diamonds and if it is offered at a better rate, that is an advantage. The subsidies are attractive in Odisha,” Radadiya said.Anjali LabTech, which operates in engineering and LGD machinery manufacturing, has proposed an investment of Rs 1,617 crore.Across companies, planned investments are estimated at about Rs 10,000 crore, though industry participants said the figure could increase as more major players join. The proposed projects are expected to generate around 8,000 jobs.Dholakia Lab Grown Diamond is preparing an investment plan of about Rs 4,000 crore. CEO Hasu Dholakiya said, “Odisha is providing unmatched advantages for LGD manufacturing and it is attracting many. Subsidies on investments and power are major attractions.”“We are considering Odisha as a long-term manufacturing destination for LGDs. Our approach is to build the project in a phased and responsible way, starting with LGD manufacturing and gradually developing higher-value capabilities as the ecosystem, skilled manpower, infrastructure and market demand mature,” said Shailesh Lukhi, executive director, AVP Star.
