Country's largest gold importer MMTC Ltd [Get Quote] has decided to join the SEZ bandwagon by setting up a gems and jewellery park in joint venture with a private player in the tax-free enclave.

The company, which is under the commerce ministry, has started the hunt for a partner and initiated the process of a feasibility study.

"The location for the special economic zone is being finalised and it could come up at one of the sites in Orissa, West Bengal, Karnataka, Haryana or Delhi," a high level source told PTI.

For conducting the feasibility study, the company is in advanced stage of hiring a consultant who will establish the economic and technical viability of the project.

For its gems and jewellery SEZ, the company would require at least 10 hectares of land as per the Commerce Ministry guidelines.

As India's premier trader for precious metal, MMTC handles more than 100 tonnes of gold and 500 tonnes of silver.

India's great rush for SEZs

Its precious metals business contributes significantly to the total turnover of over three billion dollars. It also imports platinum, rough diamonds and coloured stones.

The company also plans to float another joint venture for its retail business.

MMTC retail activities include franchise outlets, its own showrooms, selling medallions, jewellery and silver under Sanchi brand name.

It plans to launch Sanchi silverware in the export market as well, company sources said.