Mining activity has been badly affected, both in Vizianagaram and Srikakulam districts, apart from other parts of the State with the unprecedented tax burden, stringent norms for sanctioning of licenses, involvement of third parties in the collection of fees and others. This has led to slump in the minor mineral industries, including granite factories.
Thousands of people lost their livelihood and many industries are unable to clear their bank loans due to the crisis in the industry. According to a study by the Federation of Minor Mineral Industry (FEMMI), total mining leases have come down from 5,935 to 3,373 in the last three years due to multiple challenges.
Speaking to The Hindu, FEMMI Secretary General Ch. Rao said that the mining activity witnessed a 43.17 percent decline in Andhra Pradesh due to various new rules such as premium tax, consideration tax, security deposit, enhancement of fees on lease renewals.
“Adoption of unscientific methods for pit measurements and imposition of huge penalties have led to closure of many mines in several places, including North Andhra region. Creation of wealth and livelihood opportunities were badly impacted with the stringent procedures,” said Mr. Rao.
“Minor mineral industries cannot attract new investments as long as there is an excessive tax burden on entrepreneurs. That is why we are requesting the Union government to adopt uniform mining policy across the State. It can make all the States follow the same norms so that the industry would flourish and create employment for locals and villagers, as mining activity is mostly done in remote areas,” Mr. Rao added.
According to information provided by granite exporters, the government taxes and other fees have gone up from around ₹6,000 to ₹22,000 per tonne of granite block. The granite mining activity was nearly shut down due to the huge losses for almost all industries. The orders which used to come from China and other countries are now being given to industries located in Tamil Nadu and Telangana, where granite blocks are available at reasonable rates compared to Andhra Pradesh.
