Khammam: Non-release of subsidy hits granite industries hard

Khammam: Contrary to the hopes that bifurcation of Telangana from erstwhile Andhra Pradesh would be beneficial to industries in the region, many industries specifically granite are in the doldrums. The crisis in the industry can be seen evidently in Khammam as it is home to many granite industrial units. The district houses nearly 500 granite industries alone in the State and hence is often referred to as the Granite Hub of Telangana.

Thousands of people are dependant on the industry directly and indirectly in the district. For the past five years, the industry has been witnessing a bleak future due to various reasons. Over 65 industries were closed as their owners could not maintain their industries in the district. Only 435 industries were functioning regularly but even they were facing issues.

Small Scale Granite Industries State president Rayala Nageswara Rao speaking to The Hans India said that the government had not released subsidy amounts in the last five years. The government is overdue in paying Rs 30 crore, he said. Non-release of subsidy was one of the biggest reasons for the closing of the companies. The industrialists were waiting for the amounts to be released and the government should take this into consideration and immediately ensure that Rs 30 crore subsidy is released, he added.

He said that increasing the cost of raw material and fall in finished granite prices was also a reason for the crisis. He said 15-years ago raw material cost Rs 3 per feet and the finished product was Rs 55. But now the cost of raw material was Rs 8 per feet and the finished product cost was Rs 35. The government has not renewed the GO offering 40 percent rebate on slab system of royalty to the granite companies. Because of non-renewal of the GO, the Granite companies were facing many issues on royalties, he said.

Further explaining losses, he said one cutter mining royalty was priced at Rs 8,400, but after including cess and other taxes the total price was Rs 10,816. But as the GO was not renewed, the cutter mining royalty was priced at Rs 14,000, and including cess and other taxes it was Rs 17,760 nearly Rs 6,944 was being paid in taxes to the government for one cutter, Rao said.

The mining department sent proposal to the government increasing royalty on the company but due to the above mentioned and other issues the granite industries were facing crises like situation, he said.

Rao appealed to the government to support the granite industries and save them from this situation.

He said about 80 per cent granite industries were minor and small-scale industrialists. He appealed to the government to recognise the granite industries as minor and small-scale industries.