Russian diamond miner Alrosa is planning to open an office in India and is in negotiation to supply the precious stones to three companies in the country.
Domain-B reports Russian news agency RIA Novosti as saying the state-owned firm will distribute rough diamonds to the three enterprises – Diamond India, Ratilal Becharlal & Sons and Rosy Blue – providing they can agree contracts.
It is seeking to sign three-year deals with each business, which would see it provide rough gems worth $490 million (£308 million).
Signing of the agreements is expected to take place in March 2011, when Russian prime minister Vladimir Putin will make a working visit to Russia.
Recent figures released by the mining giant – which is responsible for 97 per cent of Russia's total diamond output – showed it expects to have sold rough and polished examples of the precious stones worth in excess of $2.78 million in the first nine months of 2010.