Economic slowdown is taking a heavy toll on granite industry in Telangana. It is, in fact facing the threat of extinction with no hopes of 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 was the main consumer of Karimnagar granite.
Granite mining and processing companies are closing shop one by one due to lack of demand. Now, there are only 50 agencies against 290 which used to do roaring business. According to mines and geology report, granite production dropped by 50 per cent in recent times. The royalty receivable by the department has gone down to Rs 5 crore from Rs 11 crore per month. Production has gone down to 22,000 cu m per month from 40,000 cu m.
According to granite quarry owners their business has come down by 80 per cent as buyers are not showing any interest. In Khamam district, the situation is no better. The industry which was providing employment to more than one lakh people is now on the verge of closure due to lack of demand in the domestic market.
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. Khamam granite is very famous nationally and internationally for its quality.
There are about 500 slab manufacturing units and 200 tile units in Khamam 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 also because the construction activity has come to a halt in both Andhra Pradesh and Telangana.
The owners have cut down production due to lack of demand. Another factor that is bleeding the industry is the GST. Each unit is paying Rs 2,000 per meter of stone as GST and mining royalty which is a huge burden on the industry.
The government gave 40 per cent concession on royalty till recently but it ended recently. As there is no concession now the industry is once again facing problems as they are already suffering from lack of demand for their product. Earlier, everyday about 1.50 - 2 lakh sq ft of granite was being produced by 500 units and was being transported to other states. With no demand in the last six months, the production has been cut down to half. The industry is in dire state.