The Granite industry in Andhra Pradesh, especially those in Srikakulam and Vizianagaram districts, which once used to do robust business with heavy orders from China and other countries, has lost its sheen.
The slump in the industry has impacted the livelihood of thousands of workers. Around 200 granite factories have become non-functional in the two districts. Around 3,000 units including quarries and processing units across Andhra Pradesh have stopped their operations in the last few months.
The State government’s new policies and enhanced taxes are said to have taken a toll on the granite industry which was once vibrant with the brisk economic activity in Palasa, Tekkali, Narasannapeta, Madduvalasa and other areas. More than 35,000 workers have lost their livelihood with the loss of direct and indirect employment as the leaseholders of mines and owners of processing units are unwilling to continue the business.
The taxes and other charges which were around ₹1,500 per tonne are said to have gone up to around ₹11, 000 per tonne. The market price of a tonne of granite block was around ₹22,000 till a year ago. The price has gone up steeply with the multiple taxes. Orders from China and other countries have also come down significantly as importers are choosing Telangana and Tamil Nadu where granite is available at reasonable prices.
Federation of Minor Minerals Industry (FEMMI) secretary general Ch. Rao says that increase in the security deposit, compulsory production rule, and introduction of the lease system in place of the first-come-first-served structure, consideration tax and enhanced fee of Andhra Pradesh Pollution Control Board (APPCB) have led to an “unprecedented crisis” in granite industry.
One Country One Mineral Policy
“Uniform tax structure and policies are need of the hour. Otherwise, it will not be possible for the granite industry in Andhra Pradesh to compete with its counterparts in other States, which can supply granite blocks at lower prices. We have requested the Union government to adopt the One Country One Mineral Policy,” says Mr. Rao.
A FEMMI delegation led by Mr. Rao has recently met Union Secretary of Mines V.L. Kanatha Rao, seeking to streamline the mineral policy across the country as different tax structures and rules have led to a crisis in the granite industry.
Mining of quartzite, dolomite, barytes, road metal and others is also facing a slump in the State, he says.
