KARIMNAGAR / KHAMMAM: Economic slowdown is taking a heavy toll on granite industry in the State. It is, in fact, facing the threat of extinction what with demand for granite plummeting with no hopes any turnaround.
In Karimnagar, a district known for its tan brown, maple red and coffee brown varieties of granite, is in death pangs following a steep fall in exports to China and other countries. China till now used to be the main consumer of Karimnagar granite.
Due to lack of demand, granite agencies are shutting shop one by one. There are now only 50 agencies as against 290 which used to do roaring business. According to a mines and geology authorities report, granite production dropped by 50 per cent in the last few weeks.
Assistant Director of Mines and Geology department T Venkatesham said: ‘’The royalty receivable by his department has gone down to Rs 5 crore from Rs 11 crore a month. Production has also come down to 22,000 cubic metres as against 40,000 cubic metres per month.
A granite quarry owner said that their business has come down by 80 per cent as buyers were not showing any interest. In Khammam district, the situation is no better. The industry which is providing employment to more than one lakh people is now on the cusp of closure due to lack of demand in the domestic market.
GST bleeding Telangana granite industry white
Already more than 100 industries are on the verge of closure. The industry is appealing to the government to come to their rescue by providing concessions on royalty and GST. Khammam granite is very famous nationally and internationally for its quality.
There are about 500 slab units and 200 tile units in Khammam and in surrounding villages. But for last six months the industry is facing problems due to lack of demand. The main reason for fall in demand is because construction activity has come to a halt in both Andhra and Telangana.
The owners have cut down production due to lack of demand and another factor that is bleeding the industry white is the GST. Each unit is paying Rs 2,000 per metre stone as GST and mining royalty which are a huge burden on the industry.
The government gave 40 per cent concession on royalty till recently but this ended last month. As there is no concession from this month the industry is once again facing problems as they are already suffering from lack demand for their product.
According to sources, earlier, every day about 1.50 lakh-2 lakh sft of granite is being produced through 500 units and being transported to other states. With no demand in the last 6 months the production has been cut down to half.
Telangana State Granite Small Scale Industry president Royala Nageswara Rao said that if government does not help the industry, it would have to close down.Considering the crisis, the State government has given 40 per cent concession on royalty but it ended last month. The industry has to pay full amount of royalty and GST to the government.
Industry in dire straits
The granite industry which provided employment to one lakh people and which used to export quality granite earlier is in dire straits