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Monday, June 29, 1998

Granite industry in Karnataka in a tight spot as red-tapism mars growth 

Minna Kumar  
The granite industry in Karnataka is facing a crisis of sorts with reduced volumes and closure of over 90 units in the state.

While the alleged illegal quarrying in forests and national parks is on the rise, granite miners are unable to fight the menace due to divisions among their associations.

The degradation of the granite industry is reflected in the reduction in the state's share of the country's total granite exports. From 20 per cent in 1991, the state' share went down to 16 per cent in 1997. Andhra Pradesh and Tamil Nadu have overtaken the state in terms of granite exports.

Granite miners blame the state government for its apathy. According to them, neither is import of machinery allowed under an open general license (OGL) nor are any incentives given for value added and finished products.

Moreover, red tapism threatens fresh projects, which are coming up in the state. The state government also has a very short-term lease system which prevents any consistency in performance. Leases aregranted for only five years, compared to a span of 40-50 years in countries like China and Italy, which are fast surpassing India in terms of raw and finished granite exports. Moreover, the tender-cum-auction system, which is followed in the state for government-owned lands, is not followed in competing states like Andhra Pradesh and Tamil Nadu.

The Karnataka State Finance Corporation (KSFC) has sealed several units which have not been able to pay their loans on time. As a result several miners, who have managed to repay their loans subsequently, are facing problems like corroded and out of order machines and equipment.

Miners in the state are divided into several associations including the Indian Granitiers Associations, All India Granitiers Association, All India Granite and Stone Association and Karnataka Quarry Owners Association.

Another problem faced by the state is non-availability of advanced technical know-how in stone processing, un-scientific exploitation of granite and other minerals,frequent changes in the mineral policies which are contradictory to the marketing condition prevailing in the international market. The state specialises in Ruby Red, Kanakpura Multicolour and Himalayan Blue categories of granite.

Andhra Pradesh specialises on Black Galaxy and Andhra Black and Tamil Nadu is abundant in Black and Tipu White varieties. These three southern states account for over 75 per cent of the country's granite exports. Madhya Pradesh, Rajasthan, Gujarat and Bihar account for the balance. India exported Rs 1,138 crore worth of granite during 1996-97 of which 55 per cent was processed and 45 per cent was raw. The figure stood at Rs 376 crore in 1992.

Importers of raw granite include Italy, Taiwan, South Korea and Germany. Importers of processed granite include Japan, the US and Germany. A total of 73.85 lakh tonnes of granite was mined in India during 1996-97.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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