India's Surat diamond industry wants to directly source diamonds from mining countries like Africa, Africa, Russia, Canada and Australia, Diamond World reported.

The Surat diamond industry plans to do so by forming "Surat Diamond Sourcing India Ltd (SDSIL)," a company made up of various diamond units in the city and other big companies.

So far, some 500 diamond units in the city have applies to become part of SDSIL, including large scale companies like Blue Star, Venus Jewels and Lakshmi Diamonds.

The company will source rough diamonds directly from the mines, and in turn auction the rough stones in Surat, enabling a more consistent supply of rough diamonds.

SDSIL is likely to be operational within three months with an initial capital of around Rs 1,000 crore, and plans to be listed in the Indian Exchange within three years.