De Beers and ACC Rio Tinto are reported to be prospecting for diamond reserves in Andhra Pradesh, India. There have been indications during initial studies, of a possible presence of diamond reserve pockets in fields of Anantpur, Mahbubnagar, Khammam, Nalgonda, Chittoor and Kurnool districts of the state, reports add.

ACC Rio Tinto has been given a reconnaissance license to search for diamond reserves in about 5,000 square km in Nalgonda. De Beers also holds a similar license for the Mahbubnagar area. Reports further state that after the two companies have confirmed the reserves, they would have to obtain another license to proceed with production.