HYDERABAD: The state government has sent the two proposals received from two companies for setting up gold refineries in Hyderabad to the commercial taxes department for vetting. The two companies came forward to set up gold refineries at Kongara Kalan village in Rangareddy district in a five-acre land. While one company is Hong Kong- based Huntton, the other belongs to Biyani group of India.
While the Hong Kong company projected the proposed refinery’s annual turnover at around Rs 33,000 crore, the Biyani group submitted a proposal with Rs 10,000-crore annual turnover. One company proposed to employ 150 workers with an annual pay bill of Rs 12 crore, the other proposed to engage 60 employees with an annual pay bill of `8 crore.
“Currently, the turnover of all the industries put together in the state is Rs 69,500 crore. These two gold refineries will have an expected turnover which will be nearly 61 per cent of the total turnover of all industries in the state. That is why the government has decided to refer the proposal to the commercial taxes department which will vet the proposals and make suggestions on how to get the total tax revenue from the two proposed units without any tax leakages or misuse.
Once the commercial taxes department submits its report, the government will take a final call on allowing the gold refineries,” official sources said. Sources in the industries department explained that the Rs 33,00 crore turnover of Hong Kong company would contribute 47.5 per cent to the state’s total industrial turnover while Rs 10,000 crore turnover of the Biyani group would constitute 14.1 per cent of the current turnover of all the industries in the state.
They are willing to set up gold refineries in Telangana because the erstwhile united state had stood second after Kerala in the consumption of gold. Gold to cost less for consumerIf the gold refineries come up, gold prices in the state will come down and will be lower than the prices in other states. Gold rates vary in different cities in the country. When gold refineries are set up here, there will be no need to import gold. Thus Telangana people can buy gold at lower price, an official explained.