Granite units face shortage of raw material

The Rs 100 crore granite processing industry in Orissa is facing an uncertain future due to shortage of raw materials. While the majority of the granite processing units are located in southern Orissa’s Ganjam district, there are also few other processing units in Koraput, Jeypore, Titlagarh and Bolangir districts, which are facing the same problem.

The granite cluster in Ganjam district houses about 36 units with a combined capacity to produce 7, 61,900 sq feet of processed granite, the highest in the country. But the actual production of finished granite has come down drastically with 22 processing units remaining closed due to shortage of raw materials.

 

Though raw granite is available in plenty in the state, this could not be mined due to bureaucratic delays. The process of leasing out granite quarries to the entrepreneurs has come to a grinding halt following surfacing of mining scam and arrest of several officers of the state mining department on charges of abetting irregularities in allotment and operation of various mines.

It may be noted granite is categorized as a minor mineral and the state has full authority in allotment and renewal of granite leases. But the over cautious approach of the state officials in processing mining applications in the aftermath of mining scam has precipitated the raw material shortage situation.  

At least five international quality granites are available in 15 out of 22 blocks in Ganjam district. These include lavender blue, brown, green, black and multi-mix colour granites.

Official sources said, there are 13 applicants waiting for the renewal of their mining leases, while seven others, who have received prospective license (PL), are waiting for the final approval.

As many as 30 new entrepreneurs have applied for mining license during the last three years. 

While the prospective license is granted by the Director of Mines, the mining lease is approved by the state government.

Due to shortage of raw material, several entrepreneurs are now heading for Andhra Pradesh to set up their units. “Many entrepreneurs are planning to shift their units in Orissa to Srikakulam district in Andhra Pradesh”, said one of the entrepreneurs.

A senior mining officer admitted that no fresh approval for granite mining has been given in the last several months in the district due to ongoing verification on the leases.

He, however, denied closure of units due to shortage of raw material saying several entrepreneurs have taken the lease of mines for about 20 to 30 years.