Khammam: Granite industry in crisis

Khammam: The granite industry in Khammam districtis facing an unprecedented crisis. With 70% of the factories shutting down, industrialists blame government policies, increased royalties, and stricter quarry lease regulations for the downfall.

The State government recently doubled the royalty on slab cutters from Rs 10,816 to Rs 20,560 per month and removed a 40% royalty refund subsidy. This sudden rise in operational costs has created significant financial stress for granite units. Though there was a revision to reduce the royalty to Rs 14,040, it has yet to be implemented, leaving businesses in a bind.

Notably, 70% of the industries in the Khammam district alone are prepared to shut down. The final material has not been appropriately priced, and there are no customers, therefore the stocks have expanded in addition to the raw material issue.

The situation has become much more challenging as the government removed the 40% royalty subsidy for the granite business at the same time. There are 400 industries in the district now, and since they must pay the whole fee under the slab system, it’s possible that some more will close. About 450 slab and 120 tile granite enterprises in the district will face significant financial hardship as a result of the State government eliminating the 40% royalty incentive. In the past, proprietors of four-cutters slab granite businesses paid Rs43,264 a month in taxes and royalties.

Industry will be subject to an extra monthly expense of Rs27,000. The district as a whole will be subject to an extra monthly burden of up to Rs1 crore 80 lakhs. There will be an extra expense of almost Rs. 13 crores annually.

In the past, the region was home to 200 tile industries. Only 120 are now in operation, though. Each industry will be subject to an additional monthly burden of eight thousand dollars. There will be an extra cost of Rs1 crore 20 lakhs annually.

The granite-producing district of Khammam used to be a hive of mining and excavation activity. In the past, it employed thousands of people. However, when fewer excavations were made over time, the effect on local development was seen, and those who had no work options moved elsewhere.

Before 2000, the Khammam district had more than 200 quarries; today, there are only 40. PatibandlaYugandhar, President of District Granite and Slab Association informed, “The delay in granite quarry leases is causing financial burden. Governments that should support the granite industry are bringing new regulations every day and are putting the industry in trouble. Currently, it costs Rs30 lakhs to apply for a lease for one hectare of patta land.”

“Only the pattadar is eligible for lease application,” informed Ravuri Sainath, Assistant Director of District Mines and Geology Department. He said the only a person with a pattadar passbook and whose name is registered in the Dharani is eligible for granite quarry leases.