Diamond mining in Madhya Pradesh’s Panna is strictly regulated as it lies in close proximity to the Panna Tiger Reserve. The mining site, which contains more than 90 per cent of the diamond reserves in India is provided to interested parties on lease.
While the mining contributes handsomely to the government's coffers, any unsustainable activity in the area can endanger the tigers in the reserve.
Diamonds mined in Panna are generally smaller in size, but they are renowned for their clarity and luster. Most diamonds extracted from Panna are of industrial grade, but there are also gemstones that are polished and used in fine jewelry.