Geological investigations were taken up in Bolangir and Subarnpur districts for precious gemstones and garnets. In course of investigation covering 154 square kms., 24 garnet occurrence cases have been detected. The State Government have formulated the “Gemstone policy of 1998” for promoting exploration of gemstone resources in a scientific and systematic manner. The policy, inter alia, envisages steps for prevention of illegal trading and theft of gemstones, opening of the gemstone bearing areas to private sector exploitation and introduction of a scheme of issuing trading licenses to parties dealing with gemstone resources. Out of 28 gemstone bearing tracts identified in the State, 18 tracts have been developed so far and opened for re-grant of mining leases. Besides, few more gem bearing areas have been located in parts of Nuapada, Kalahandi and Bolangir districts by the Directorate of Geology. There exists a good prospect for export of gems and jewellery from Odisha.

Consequent upon the finding of Diamond bearing Kimberlitic/Olivine lamproite bodies in Dharambandha block of Nuapada district by the Directorate of Geology, investigation has been extended to the adjacent areas to locate more such bodies. In the process, approximately one sq. km. of area was covered under geological mapping. Trial excavation to the tune of 50 cum has been achieved. Samples weighing 102 tonnes have been collected for lab-testing for diamond incidence.