ONGOLE: The global meltdown has impacted the world famous granite industry in Chimakurthy, 24 km from here, so much so that 80 per cent of the production may come down this month.
Known as a global village, Chimakurthy is popular for its black granite worldwide. It usually produces 30,000 to 40,000 cubic metres per month in its 170 granite quarries.
However, so far, it has produced only 15,000 cubic metres this month. ‘‘In December, the production is expected to further fall by 80 per cent,’’ Chimakurthy Galaxy Granite Quarry Owners’ Association president R Lakshminarayana told Express.
Of the total production, over 80 per cent is exported to China where it is polished. Later, the finished product is sent to the US, Germany and other countries. But due to the financial crisis, indents to China from these countries have fallen by 90 per cent. As a result, China has stopped importing raw granite by 60 per cent. China, which has never imposed restrictions on Chimakurthy granite all these years, is raising objections on the quality of the valuable stone.
It is insisting on ‘clear box’ with no joints and cracks.With no solution in sight for the hard-hit economies of the Western nations, managements of the granite companies have sent enough signals to employees to be prepared for ‘pink slips.’ The industry has been providing direct employment to 15,000 and indirect jobs to another 40,000.
Some 10,000 have already been told to seek alternative employment.
‘‘We have, never in our wildest dreams thought that the global financial meltdown will shatter our lives,’’ said V Anil Kumar, a production manager in one of the companies.
Even the State Government is losing revenue in the form of royalty due to the slide. ‘‘Of the targeted Rs 10.67 crore royalty for November, there is no guarantee that even 20 per cent can be collected,’’ Assistant Director (Mining) C Ramachandra Reddy told Express.
However, some of the Export Oriented Units (EOUs) have adopted wait-and-watch policy for another fortnight before taking a decision on layoffs. ‘‘As we see no hope at present, how long can we suffer losses and pay salaries to the employees?’’ a representative of one of the EOUs said and added that the future of thousands of employees hinges on the quick recovery of the United States from its present financial turmoil.