ONGOLE: Granite industry in the district is facing troubles with decrease in exports of granite blocks to foreign countries, especially China.
For the last few months, most of the Chimakurthy-based galaxy granite quarries, Kanigiri and Gurijepalli-based black pearl granites quarries and steel grey granite quarries in Ballikurava are facing problems as most of them have huge stocks.
Since 2020, the industry is facing hardships due to the Covid-19 pandemic-induced industry glitches, higher royalty fee, hike of overseas cargo transport charges, crores of rupees worth penalties levied by the Vigilance department, increased fuel costs, shortage of granite transporting containers and less demand from China.
Around 500 leases have been issued in 105 granite quarries in the district and around 75 per cent of the granite blocks produced at these quarries are exported to foreign countries. In this, a lion’s share goes to China. The remaining 25 % granite blocks will cater to the local needs and will be sent to around 2,000 polishing units across the district.
The Mines and Geology department has estimated around Rs 400 crore income in the form of royalty from the quarries in the district in 2021 and got Rs 371 crore. Other government departments, including petroleum (Fuel), electricity, transport, finance (GST, Income-Tax), also received good income.
The Mines and Geology department has set a target to collect nearly Rs 428 crore as royalty income in 2022 and for this trimester (Jan - March 2022), it expected Rs 110 crore. But up to date, the department has received only Rs 33 crore and it has to get the remaining Rs 77 crore by March-end.
In January 2020, 54,755 cubic metres of galaxy granite blocks were exported from the district. It increased to 63,236 cubic metres in January 2011. The exports have reduced to 44,823 cubic metres in January 2022. Coming to colour granites, the scenario is not much different.
“After a prolonged struggle of two years due to the Covid-19 impact, we are hopeful of a revival of business this year. We expect a good number of orders from China. If it doesn’t happen, it will be very difficult for the industry,’’ a quarry owner said.