This trial is investigating the efficacy of stem cells derived from the patient's own bone in the treatment of type 2 diabetes. The trial is being conducted at the Postgraduate Institute of Medical Research in Chandigarh and proposes to recruit 30 subjects between December 2012 and June 2015. Mesenchymal stem cells will be harvested from the patient's own bone marrow and expanded in the laboratory. Participants will be randomly assigned to either an experimental group that will receive an injection of the expanded stem cells (via the superior Pancreaticoduodenal artery), or a control group which will a placebo injection of bone marrow plus vitamin B complex in exactly the same manner as the experimental group. All participants will be monitored for complications and assessed for changes in their clinical condition, including changes in insulin requirement as well as glucagon stimulated C peptide levels.