Title: Granite Industry in Andhra Pradesh Faces Imminent Collapse: Industry Calls for Urgent Government Intervention

Andhra Pradesh, India – The granite industry, once a shining symbol of Andhra Pradesh’s industrial growth and export prowess, is now facing a severe crisis. Centered around key districts such as Srikakulam, Prakasam, and Chittoor, the sector that once contributed over ₹3,000 crore annually to the state’s economy is now grappling with unsustainable operating conditions, threatening over 30,000 direct jobs and many more indirect livelihoods.

Industry representatives cite a combination of policy setbacks and financial pressure as the primary causes of the ongoing crisis. These include:

• Unreasonably High Royalty and Cess Charges: The cumulative levies in Andhra Pradesh often exceed ₹2,500 per CBM (Cubic Meter), which is far higher than competing states like Tamil Nadu and Gujarat where charges are capped around ₹1,500 per CBM.

• Frequent Policy Changes and Administrative Instability: Sudden changes in mining rules, delays in lease renewals, and unpredictable inspection regimes have created a hostile environment for investment and operations.

• Excessive Political and Bureaucratic Influence: Legitimate businesses are often bogged down by politically influenced decisions and inconsistent enforcement, allowing only a few well-connected entities to survive.

• Loss of Competitive Edge: States like Rajasthan, Tamil Nadu, and Gujarat have emerged as preferred destinations for buyers and exporters due to their stable policies, cost efficiency, and administrative transparency.

“If immediate action is not taken, Andhra Pradesh will lose its position as a key player in the global granite export market. Thousands of families depending on this industry will be pushed into economic despair,” said a leading industry spokesperson.

Demands and Solutions Proposed by the Industry

To prevent a total collapse of the sector, the granite industry urges the Andhra Pradesh government and the Ministry of Mines to adopt the following immediate measures:

1. Reduce DMF Contribution: Cut the District Mineral Foundation contribution from the current 30% to 10–15%, in line with other progressive states.

2. Cap All Cumulative Charges: Limit the total burden to ₹1,500 per CBM to restore competitiveness in domestic and international markets.

3. Establish a 3-Year Stable Policy Framework: Ensure regulatory consistency and transparency for long-term planning and investment.

4. Form a Granite Promotion Cell: Create a dedicated body under the Industries Department to streamline approvals, address grievances, and promote global trade.

5. Offer Export Incentives: Introduce freight subsidies, interest subvention, and tax rebates to support exporters in competing with global players.

6. Involve Industry Stakeholders in Policy Dialogue: Stop unilateral decisions; include mining and export leaders in shaping future policy to ensure practical and implementable outcomes.

Final Appeal to Government Leadership

The industry makes a strong and respectful appeal to Hon’ble Chief Minister Sri N. Chandrababu Naidu and the Ministry of Mines to treat this as an emergency. The situation demands bold, immediate, and inclusive decisions.

“This is not just about granite—it is about the dignity and survival of thousands of hardworking families. Let us restore Andhra Pradesh’s legacy in the global natural stone market through fair policies and visionary leadership.”

This massive disparity makes it impossible for AP producers to compete in national or
export markets.

Immediate Steps Government Must Take
To save ₹3,000+ crore granite sector and over 30,000+ direct jobs, the AP government
must:
1. Reduce DMF from 30% to 10–15%, like other states.
2. Cap cumulative charges to ₹1,500 per CBM to match Gujarat/Tamil Nadu.
3. Establish a 3-year stable policy framework to ensure predictability.
4. Set up a Granite Promotion Cell under the Industries Department.
5. Offer Export Incentives or Rebate for global market competitiveness.
6. Engage Industry Leaders in Policy Discussions, instead of unilateral decisions.

Final Appeal
We urge the Andhra Pradesh Government, Ministry of Mines, and CM Sri N ChandrababuNaidu to act immediately.
If no action is taken, thousands of families depending on this industry will be pushed into economic despair.