Granite Industry in Crisis in Khammam
The granite industry in Khammam district is facing a severe crisis, with 70% of the factories shutting down. Industry leaders attribute this downturn to government policies, increased royalties, and stricter quarry lease regulations.
Recently, the State government doubled the royalty charges for slab cutters from ₹10,816 to ₹20,560 per month and also removed a 40% royalty refund subsidy. This sudden increase in costs has created financial stress for granite businesses. Although there was a decision to reduce the royalty to ₹14,040, it has not yet been implemented, leaving businesses in a difficult position.
This financial strain has led to a situation where 70% of the granite industries in Khammam are on the verge of closure. Factory owners say that the pricing of the finished material is not competitive, leading to low customer demand and stockpiling issues. Alongside the raw material shortage, this has worsened the crisis.
Currently, there are 400 granite industries in the district, but many are struggling to survive. The removal of the 40% royalty subsidy has added significant financial pressure. For instance, owners of four-cutter slab granite businesses previously paid ₹43,264 monthly in taxes and royalties, but now face an additional monthly expense of ₹27,000. This has resulted in an extra district-wide burden of ₹1.8 crore per month, amounting to nearly ₹13 crore annually.
The situation is equally grim for tile industries. Out of 200 tile industries that once operated in the district, only 120 remain functional. Each tile industry now faces an additional monthly cost of ₹8,000, resulting in a district-wide burden of ₹1.2 crore annually.
Khammam, once a thriving hub of granite mining and excavation, has seen a significant decline in activity over the years. The region, which once provided jobs for thousands, now faces economic stagnation. Many workers have been forced to migrate elsewhere in search of employment.
The number of granite quarries in the district has also drastically reduced. Before 2000, Khammam had over 200 quarries, but today only 40 remain operational. Patibandla Yugandhar, President of the District Granite and Slab Association, highlighted the issues, stating, “The delay in granite quarry leases is causing a financial burden. Instead of supporting the granite industry, the government is introducing new regulations that are making things worse. Currently, it costs ₹30 lakhs to apply for a lease for one hectare of patta land.”
Ravuri Sainath, Assistant Director of the District Mines and Geology Department, clarified that only individuals with a pattadar passbook and whose name is registered in the Dharani system are eligible to apply for granite quarry leases. This restriction has further limited access to quarrying rights, adding to the industry’s woes.
The granite industry in Khammam is at a crossroads, and without significant intervention, its future remains uncertain.
