Granite industries halt operations in Srikakulam district of Andhra Pradesh opposing mining policy

According to industry owners and representatives, the State government had enhanced taxes and fees abnormally in the last few months

A view of granite mining near Tekkali in Srikakulam district.

As many as 120 granite industries and quarries have halted their operations in Srikakulam district for the last one week, opposing the State government’s new rules and regulations and hike in fees.

Around 20,000 labourers have lost their livelihood with the shutting down of operations in all the units. According to industry owners and representatives, the State government had enhanced taxes and fees abnormally in the last few months.

Earlier, the overall seigniorage charge was around ₹6000 per cubic metre of granite mining but it was enhanced to around ₹18,000, causing uproar among the representatives. Earlier, the government used to give 25 per cent rebate on charges for local industries. However, the rebate is not being considered by a private company which was recently given the responsibility of collecting the fees and charges.

The government recently introduced an auction system replacing the old lease system for the allocation of granite mines.

The industry representatives strongly feel that the auction system would lead to unhealthy competition and losses as there is no guarantee of getting good quality granite after investing a huge amount of money on machinery and mining.

“The State government should hold a meeting with all stakeholders immediately to resolve pending problems and other grievances of the granite industry which is ensuring huge revenue to the government while providing job opportunities to many locals,” said one of the representatives of Federation of Minor Minerals Industries.

TDP’s Srikakulam district president Kuna Ravikumar alleged that the State government had thrown the granite industry into turmoil with its ‘wrong’ mining policies, enhancement of seigniorage charges and auction system. “The Andhra Pradesh Pollution Control Board also enhanced its fees recently for issuing No-Objection Certificates. It is another blow for the industry. The State government which wanted to control all mines is complicating rules and regulations to drive away the existing industrialists from the granite industry,” he alleged.