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Jewellers concerned over hallmarking standards

Lack of infrastructure, mandatory licence fee worrying factors

Our Bureau

Hyderabad, Dec. 20 Over 30,000 jewellers represented by the All India Gems and Jewellery Federation (GJF) are in a state of quandary over the Government’s move to enforce hallmarking standards without the industry having infrastructure to address it.

The country’s Rs 70,000-crore industry, which generates 30 per cent of total business from urban centres and the rest from rural areas, expressed that the implementation of the Hallmarking Act needs to be carefully thought out. Representatives of the federation today said that some of the provisions of the new enactment actually take them back to the Licence Raj, when most of the industries in the country are being de-licensed.

Addressing a press conference here today, the Directors of All India Gems and Jewellery Federation, Mr H. Mohanlal Jain, and Mr Mohanlal Gupta, along with other members said that the industry is supportive of the Government’s initiative to ensure hallmarking, but felt that some of the proposed rules including the mandatory licence fee go against the interests of the industry.

Govt plans

As per Government proposals, four metropolitan cities would first implement hallmarking from January 1. Jewellers estimate that while the industry requires about 3,000 hallmarking centres, it currently has barely 75 of them. This makes it literally impossible to ensure hallmarking, they said.

“The industry just does not have the infrastructure to support the current requirement. Before this is pressed into service the Government should see that more hallmarking centres are created. It is estimated that each centre requires up to Rs 2 crore in investment,” the representatives said.

Licensing system

Referring to the directive on every retailer requiring to obtain a licence with a fee ranging from Rs 25,000 to Rs 10,000 valid for three years depending upon where it is located, they said why such a licensing system is being brought about when in most of the sectors, licences are being done away with.

Jewellers also expressed concern about the power to inspect and fine a trader with the onus on the trader for any defect, even if it is hallmarked by a third party.

“We have made several representations to the Director General of Bureau of Indian Standards (BIS), expressing dismay over the Government disregard for ground realities with regard to implementation of the Hallmarking Act,” they claimed.

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