HYDERABAD: With the cost of buying 20 mm crushed stone increasing by over Rs 100 per tonne, construction activity in the State is set to get more expensive.
The white or grey 20 mm crushed stone is one of the most crucial elements for building roads, flyovers and high-rise buildings among other things. At least 80 per cent of the stone goes towards the construction of roads and flyovers. The crushed stone is also used in the laying of reinforced concrete slabs and ready-mix plants.
According to the Telangana Stone Crushers Association (TSCA), the stone, which used to cost around Rs 450 per tonne a few months ago, has gone up to Rs 600 after the State government increased the royalty to Rs 165 per tonne.
There are around 750 stone crushers in the State, which supply around 10 lakh tonnes of 20 mm stone daily across the State, including 5 lakh tonnes in Hyderabad.
Speaking to The New Indian Express, TSCA president M Kamalakar Reddy said, "The blasting material used for the stone has increased from Rs 700 to Rs 3,200 in the last two years due to the war in Ukraine, shortage of raw material and increase in diesel prices. This apart, power bills have also increased and iron rates have also risen from Rs 60 to Rs 90 per kg."
He informed that while the production cost of the stone is Rs 365 per tonne, the royalty price is Rs 165 per tonne, but when the GST charges, miscellaneous charges and commissions are taken into account, the cost of the stone goes up to Rs 600 per tonne.
Telangana government relaxes norms
In April, construction activity in the State came to a grinding halt as the Mining Department asked the stone crushers that do not have valid licenses and environmental clearances (EC) to stop crushing activity.
On the other hand, stone crushers resumed their activity after the government accepted their bid to renew licenses and get EC. The State government has agreed to provide relaxations in environment clearances for up to 5 months.
Increase in rates
Caused by war in Ukraine
Hike in the price of iron, blasting material and diesel
Increase in govt royalty