The Hindu Business Line : BIS to set up 500 centres to check quality of jewellery

THE UNION MINISTER for Company Affairs, Mr P.C. Gupta, with the Assocham President, Mr Anil K. Agarwal, at the second International Gold Summit in the Capital on Saturday. — Kamal Narang

New Delhi , Sept. 2

In a bid to monitor the quality of gold and silver jewellery sold in the country, the Government has asked the Bureau of Indian Standards (BIS) to set up 500 surveillance centres across the country.

The move comes after tests carried out by Government inspectors found out that the majority of jewellery shops in the country were selling jewellery that were below the prescribed standards.

"The BIS has been asked to set up about 500 surveillance centres all over the country so that no cheating takes place for small investors in gold and silver.

"These centres would shortly become operational in major metropolis and other cities," the Minister of Company Affairs, Mr P.C. Gupta, said, while inaugurating the 2nd International Gold Summit organised by Assocham. The Minister said that a nation-wide survey conducted by BIS showed that 88 per cent of shops where jewellery was tested by the inspectors failed to follow purity levels. "These kinds of distortions are not going to be tolerated," said Mr Gupta.

The Minister also said that India is on the way to become the global hub for gold. "With the commencement of futures trading in the metal, India is no longer looked as a price taker or price seeker of the gold. With the demand for the precious metal going to over 800 tonnes in recent years according to the estimates of the World Gold Council, there is potential for the country to become a price-setter in the international market," said Mr Gupta.

Speaking on the occasion, Mr Jignesh Shah, MD and CEO, MCX, said that the gold trading on an average has reached about Rs 6,500 crore a day compared to Rs 3,500 crore a couple of months ago. This is against the daily trading of Indian stock exchanges that is not beyond Rs 3,500 crore.

Mr Shah said that further liberalisation of the bullion is in the interest of the country and the Government should not delay it any longer.

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