South Mumbai's Zaveri bazaar may soon move to a new address, experts proposes to relocate to Panvel

MUMBAI: Zaveri Bazaar, the hub of India’s gold and silver trade in south Mumbai, might soon get a new address, just like the diamond trade which has been gradually relocating from the city’s congested Charni Road area to the much larger Bharat Diamond Bourse in the Bandra-Kurla complex.

Negotiations are on between leading industry body India Bullion and Jewellers Association (IBJA) and Maharashtra Industrial Development Corporation (MIDC), the state’s nodal agency for industrial development, for allotment of land to the trade. IBJA, consisting of 1,100 members, is proposing to shift either lock stock and barrel from the crowded Zaveri Bazaar to the city of Panvel, close to the proposed new international airport, or two nearby locations.

The discussions began after IBJA approached chief minister Devendra Fadnavis, who, in turn, asked MIDC to consider allotment of land around Panvel. “We have requested for around 500 acres to be allotted in Panvel, and will take a call based on the amount of land which can be earmarked for setting up a jewellery park, knowledge centre and accompanying facilities,” said Ketan Shroff, spokesperson, IBJA.

Bhushan Gagrani, CEO, MIDC, told ET that Pavel may be short of land. “The association has approached us a couple of times. It’s a good idea but we don’t have 500 acres available in Panvel. Therefore, we have suggested two alternatives to them (IBJA) – Roha Mangaon where we are currently acquiring land, and Khopoli.”

Currently, scores of jewellery manufacturers, gold refiners and bullion traders, operate out of the highly congested market at Zaveri Bazaar, where an estimated 40% of India’s gold trade takes place each year. “It’s highly inconvenient in terms of logistics, security, well-being of workers and ease of doing business. This has made it imperative for us to consider a new location,” added Shroff.

At Khopoli, MIDC has notified the site for acquisition and setting up of an industrial zone. However, it has not started the land acquisition process as yet. Apart from these locations, the association has also suggested a separate site, also in Khopoli, to MIDC for land allotment.

“We are currently considering all three locations. If the association is fine with Roha Mangaon site, we can allot the land in the next six months; other places may take longer. And, this will be allotted to them at compensation as per our norms,” Gagrani added.

Zaveri Bazar is the country’s oldest jewellery market. The oldest outlet, Narandas Manordas, is over 200 years old. It also houses showrooms of reputed jewellers like TBZ The Original, Dwarkadas Chandumal, UTZ, etc.

Until six-seven years ago Zaveri Bazaar accounted for 65% of the country’s bullion trade. But traders moved to Ahmedabad, India’s bullion capital, when the Maharashtra state government imposed stamp duty of 0.1% on gold and silver in addition to an octroi of 0.1% on gold and 2% on silver, according to Shroff. Ahmedabad imposes neither octroi nor stamp duty.

Making Panvel a possible hub will do away with octroi and help the Mumbai Metropolitan region to reclaim the status of bullion capital.