The members of the Federation of Minor Minerals Industries on May 7 (Sunday) urged the Andhra Pradesh government to introduce a ‘first-come-first-served’ system instead of the auction system for the allocation of lease for granite quarry.
The federation members claimed that the auction system had ‘failed in all aspects’ and it was evident from the poor response from the entrepreneurs across the State including those from Vizianagaram and Srikakulam districts where granite units had stopped their operations.
Federation national secretary general C.H. Rao, who held meetings with the representatives of granite industries and quarries in Srikakulam on Saturday and Sunday, said that the industry would not survive if the government failed to resolve the issues.
“The auction system, which has been introduced along the lines of Rajasthan, has failed to evoke a good response from the bidders. Only 117 mineral blocks out of 500 have been given on lease and they have generated only ₹28 crore as against the expected ₹500 crore,” he said.
“Multiple taxes and complicated rules have led to the collapse of the granite industry in Andhra Pradesh. The government must scrap the security deposit system and consider tax and premium charges on the renewal of the lease which needs to be extended for 30 years. The authorities concerned have to clear 700 mining and quarry lease applications on a priority basis to ensure livelihood for lakhs of people,” said Mr. Rao.
Collection of royalties
He also opposed the collection of royalties by third parties that were allegedly harassing the lease holders while ignoring the 25% rebate on taxes for local industries.
The federation insisted that the government must implement the recommendations of the sub-committee appointed on July 22, 2022. The sub-committee reportedly suggested a first-come-first-served system and clearance of all pending applications submitted prior to March 14, 2022.
The sub-committee also recommended that the e-auction system be confined to the lease area of more than 5 hectares and that the applicants be given four weeks to pay the ‘Annual Dead Rent’.
Industry status sought
The federation also urged the government to ensure industry status for granite mining so that the entrepreneurs would get concessions on electricity and other statutory charges. The banks would provide loans to buy machinery for granite mining in the allocated blocks if the industry status was given, Mr. Rao added.
