development of granite industry in andhra pradesh and chittoor...
TRANSCRIPT
Chapter-III
DEVELOPMENT OF GRANITE INDUSTRY IN ANDHRA PRADESH
AND CHITTOOR DISTRICT
70
3.1 INTRODUCTION For the past hundred years, Andhra Pradesh granite industry has remained in
classical colonial pattern. Andhra Pradesh is one of the major producers of granite in
India. A handful of quarry owners, skilled workers and artisans from Kuppam in
Chittoor district controlled the art of chiseling, making monuments of granite products
and exports, until some form of demand and international market was developed in
the late 1970’s. Financial institutions gave finance liberally to the granite
entrepreneurs, who ever had approached them with a plan to establish granite
processing unit within the state. The change in approach in tune with the policy
change has resulted in more of increase in grant of funds to granite firms.
In the last decade, granite industry has shown notable growth in the field of
production when comparison with the other minerals. There were pronounced
technological changes in quarrying pattern and processing of granites in the state.
However, the granite industry has reached a state of stagnation and production falling
marginally fallen during the last two years due to lack of further explorations,
identification of newer varieties, quality failures in quarries, unscientific mining, low
recovery, unhealthy competition among entrepreneurs, long credit periods and at
times resulting in non-payment by foreign markets, lack of working capital,
encouragement and market strategies.
The Government of India through the Granite Development Council, after
series of interactions with the various State government brought in, “Granite
Conservation and Development Rules-1999” effective from 1-6-1999 which should
help sustain long term growth and development of granite industry in the country as
well as in state. The State of Andhra Pradesh intends to modify its APMMC Rules
1966 in tune with Granite Conservation and Development Rules 1999 to stabilize the
initial advantage gained by the state with popular orientation and encouragement. The
Andhra Pradesh government has recognized granite as one of the four focused
minerals in its Vision-2020 and envisages a growth rate of 10 to 15 per cent.
3.2 PROSPECTIVE AND DISTRIBUTION Several occurrences of commercially known granites of acceptable quality are
found in different igneous and metamorphic terrain of Andhra Pradesh. Seventeen out
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of twenty three districts are known for the occurrence of different varieties of granites,
which shows the vast and inexhaustible potential of granite resources in the state.
Different types of rocks suitable for use as decorative and dimensional stones are
found in Chittoor, Prakasam, Ananthapur, Khammam, Warangal, Guntur,
Karimnagar, Srikakulam, Nalgonda, Vijayanagaram, Kurnool, Mahabubnagar,
Nizamabad, Medak and Ranga Reddy districts of Andhra Pradesh.
The Black granite varieties occur predominantly in the districts of Warangal,
Khammam and Prakasam and to some extent in Nalgonda, Anantapur, Kurnool and
Chittoor districts, While the coloured like Pink, Grey, Blue, White and other Multi-
Coloured granite reserves are found in greater quantities in the districts of
Karimnagar, Nizamabad, Anantapur, Kurnool, Chittoor, Prakasam, Guntur,
Srikakulam, Visakhapatnam, Vijayanagaram, Mahabubnagar, Ranga Reddy and
Nalgonda.
Recently Geological Survey of India (GSI) have covered an area about 38, 000
sq.km in 14 districts and carried out an extensive surveys and identified commercially
viable deposits of granite in parts of various districts in Andhra Pradesh. The surveys
have brought out new occurrences of Black galaxy, Yellow, Black, Imperial Red,
American Green, Multi-Colour, Blue, White and English Teak at different localities.
The state Department of Mines and Geology has also carried out inventory and village
wise survey. Tentative estimated reserves of commercially viable granite deposits of
around 72.18 lakh tones were found granites in Andhra Pradesh. At present there are
about 950 granite leases with a production of about 37.67 lakh tonnes during 2011-12.
The major production of granite comes from Prakasam, Srikakulam, Warangal,
Khammam, Karimnagar and Chittoor districts. About 80 to 90 per cent of the granite
firms are small. The remaining granite firms are captive and mechanized in Andhra
Pradesh.
3.3 GRANITE INDUSTRY IN ANDHRA PRADESH The Andhra Pradesh granite industry is one of the oldest and strongest rural-
based industries, achieving more than Rs.250 Crore in exports, giving employment to
about nearly 30,000 people. Unfortunately, the granite industry has not come up to the
international standards even with consistent, uniform, reliable, long term policy on par
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with the granite policies prevailing world over. No doubt, in Andhra Pradesh, the
rules have been drastically changed almost every two to three years, from 1985
onwards; the rules are changed with an aim to encourage liberalising rules for sorting
out the problems of the granite industry. The rules were always amended for the
advantage and growth of granite industry rather than monopolies by the State
Government of Andhra Pradesh. The rules were originally brought to set up granite
processing factories with encouraging incentives to support the establishment of the
factories and value addition. Since granite processing industry is the first generation
industry the government recognises it as priority sector, more particularly for income,
training and employment generation in the small scale industrial sector. The market
strategy of the granite industry has to be to reach the global standards and to meet the
changing demands for different products and varieties. The state Government as a
facilitator will help the industry with the soul intention of development of granite
industry in the new millennium.
Andhra Pradesh contributes about 25 to 30 per cent of the granite exports of
India, mainly consisting of Jet black, Kuppam Green, Black Galaxy, Srikakulam Blue
and White, Tan Brown, Chilly Red, English Teak, Anantapur Gray types and small
quantities of other lesser known varieties. The state industry, on its own, discovered
and is trading in 15 to 20 varieties of colour out of 120 varieties found in India. The
total dispatches have been regularly increasing for the last 10 years. About 50 to 60
per cent of the production is in the form of raw blocks which are exported from the
state to different destinations either in raw or processed form. The remaining are
being processed within the state and exported to cater to the international, national
and local markets. The ultimate market destination of the Andhra Pradesh granites can
be gauged with the international popularity and usage in most of the buildings and
monuments as decorative stone. The capacity increase in processing doesn’t match the
exports and demand in the international market, but earning substantial foreign
exchange for the country. However, the development and performance of the industry
started deteriorating from the mid-nineties due to various reasons, the foremost being
inadequate and discontinuous supply of gang saw size blocks, power supply, working
capital and high cost of transportation.
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3.4 FIVE YEAR PLAN OUTLAYS ON GRANITE UNITS IN ANDHRA
PRADESH
The total amount of government expenditure in various five year plans on
granite industrial units in Andhra Pradesh is presented in the Table-3.1.
Table-3.1
Five Year Plan Outlays on Granite and Minerals Units in A.P
Sl.No Plan Total Outlay (Rs. in. Crore)
1 6th 75.66
2 7th 219.3
3 8th 130.9
4 9th 567.65
5 10th 742.4
6 11th 679.56 Source: Five Year Plan Reports Note: Total outlay includes both the granite and other minerals
The total outlay during various five year plans on granite and other minerals
industry in Andhra Pradesh may be seen in the Table-3.1. The data shows that during
the 6th plan period the total outlay on granite and other minerals industry was Rs.75.66
Crore. Then the total outlay on granite industry was increased to Rs.679.56 Crore
during 11th Five Year Plan.
3.5 NERVE CENTERS OF GRANITE IN ANDHRA PRADESH
Andhra Pradesh is one of the largest producers of granites in the country. 17
out of 23 districts have several occurrences of different varieties of granite. Jet Black,
Black Galaxy, Blue and White colored are exclusive varieties exported for the
international market.
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Table-3.2
Granite Nerve in Andhra Pradesh
Sl.No Granite Name Location 1 Indian Labrador Chilakaluripet, Guntur District 2 Srikakulam Blue Tekkali, Saravakota, Srikakulam District 3 Lavender Blue Palasa, Nandigam, Regadi Amudalavalasa, Srikakulam District 4 Brown Porphyry Kalawala, Karimnagar District 5 Ocean Blue Ballikuruva, Prakasam District 6 Red Rose Mulangoor, Huzurabad, Karimnagar District 7 Vizag Blue Tekkali, Srikakulam District
8 Black Choutapalli, Somaram, Tharalapally, Warangal District, M. Venkatayapalem, Nellakondapalli, Pamimi, Kammam District
9 Black Galaxy Cheemakurti, Bodawada, Prakasam District 10 Silver Galaxy Ramapuram, Nellore District 11 Tiger Black Madanapalle, Chittoor District 12 Mulbagal Grey Mulbagal, Chittoor District 13 Blue Brown Kalawala, Karimnagar District 14 Chocolate Brown Adoni, Kurnool District 15 Anantapur Grey Rayadurga, Anantapur District 16 Viscon Grey Palamaner, Madanapalle, Chittoor District 17 Viscon White Punganur, Chittoor District 18 Blue Paradise Anandavaram, Guntur District 19 Cat's Eye Santhanagalur, Narasaraopet, Guntur District 20 Chilly Red WajraKarur, Anantapur District 21 Copper Green Narasaraopet, Guntur District 22 English Teak Kothamallipeta, Chittoor District 23 Forest Green Guntur District 24 Green Rose Sadum, Chittoor District 25 Platinum Blue UppuNagalur, Chilakaluripet, Guntur District 26 River Pink Darsi, Prakasam District 27 Royal Blue Addhanki, Prakasam District 28 Sapphire Brown Kazipet, Warangal District 29 Unique Brown Nathendla, Chilakaluripet, Guntur District 30 Royal Red/Imperial Red Adoni, Kurnool District 30 Atlas Blue Sajjapuram, Guntur District 32 Kuppam Green Krishnanpalli and outskirts, Kuppam, Chittoor District 33 Silver Pearl Gurujepalli, Chilakaluripet, Guntur District
Source: All India Granites and Stones Association (AIGSA)
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3.6 GRANITE RESERVES IN ANDHRA PRADESH
The industry’s growth and development is mostly decided by the availability
of reserves of raw material. Details of total reserves of granite in Andhra Pradesh
were presented in the Table-3.3.
Table-3.3 Reserves of Granite in Andhra Pradesh
Sl. No Year Total Reserves (In. Tonnes)
1 1995 690000
2 2000 8362619
3 2005 7217670
4 2010 7217670 Source: Indian Minerals Year Books
Andhra Pradesh state is one of the states having rich deposits of granite in
India. From the table-3.3,it is clear the total reserves of granite in the state were 69,
00, 000 tonnes in 1995 and increased to 83, 62, 619 tonnes by 2000. The reserves of
granite in the state have slightly decreased to 72, 17, 670 tonnes in 2005 and it was
the same in 2010 also.
Table-3.4 District-wise Reserves of Granite in Andhra Pradesh during 2010-11
(In. Tonnes) Sl. No Name of the District Total Reserves Percentage of Share
1 Anantapur 3288 0.05 2 Chittoor 1662225 23.03 3 Cuddapah 795 0.01 4 Guntur 3430000 47.52 5 Kammam 57 0.0008 6 Medak 6450 0.09 7 Nalgonda 375 0.005 8 Nellore 39000 0.54 9 Prakasam 1144995 15.86 10 Srikakulam 594813 8.24 11 Vijayanagaram 51072 0.71 12 Warangal 129600 1.80 13 Others 155000 2.15
A.P-Total 7217670 100.00 Source: 1.Ministry of Mines 2. Department of Mines and Geology (Various Districts of A.P)
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0.05
23.03
0.01
47.52
0.0008 0.09 0.005 0.54
15.86
8.24
0.71 1.8 2.15
0
5
10
15
20
25
30
35
40
45
50
Res
erve
of G
rani
te
Anantapur Cuddapah Kammam Nalgonda Prakasam Vijayanagaram Others
Name of the District
Fig.3.1: District-wise Reserves of Granite in Andhra Pradesh during 2010-11
Percentageof Share
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The Table-3.4 and Fig-3.1 shows that there were 72, 17,670 tonnes of granite
reserves in various districts of Andhra Pradesh during 2010-2011. Among the various
districts, the granite reserves are recorded with the highest percentage of 47.52 was
recorded in Guntur district and the lowest of 0.0008 per cent in Khammam district.
Chittoor district is in second position; it has 23.03 per cent of granite reserves in the
state. 15.86 per cent of granite reserves are available in Prakasam district. Srikakulam,
Warangal, Vijayanagaram, Nellore, Anantapur, Medak, Nalgonda, Cuddapah, and
other districts have 8.24, 1.80, 0.71, 0.54, 0.05, 0.09, 0.005, 0.01, and 2.15 per cent of
granite reserves respectively of the total reserves of granite in Andhra Pradesh. The
information in the Table-3.4 clearly shows the share of various districts of the total
reserves of granite in Andhra Pradesh.
3.7 GRANITE INDUSTRY – EMPLOYMENT
Table-3.5 Average Daily Employment in Granite Industry in Andhra Pradesh
(In. Persons) Sl. No
Year
Employment
O/C A/G Total
1 2000 1104 154 1258 2 2005 1362 836 2198 3 2010 1828 994 2822
Source: Department of Mines and Geology, Govt. of A. P
From a glance at the Table-3.5, it can be observed that the average daily
employment of granite industry in open cost (O/C) and above ground (A/G) was 1104
and 154 persons respectively in 2000, and that it increased to 1828 in open cost and to
994 persons in above ground in 2010. Moreover, the total average daily employment
of granite industry was 1258 persons which increased to 2822 persons in 2010.
3.8 GROWTH OF GRANITE INDUSTRY IN ANDHRA PRADESH Table-3.6 presents the year-wise registered granite units (Cumulative) which
reflect the growth of granite units in the State.
From the Table-3.6 and Fig.3.2, it can be observed that, the total number of
registered granite units in 2001 was 3152. The total fixed investment in those units
was around Rs.196 Crore. The granite units could provide employment to 15258
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persons towards the end of the year 2001. The data in the table provide a clear view
that there has been a gradual increase in the number of units from 2001 to 2010. There
is an impression that the growth has not been spectacular but gradual. Similar trend
has been noticed in the growth of fixed investment.
3.9 INVESTMENT AND EMPLOYMENT INWORKING GRANITE UNITS
Table-3.6 Registered Granite Units in Andhra Pradesh during 2001-2010
Sl. No Year No. of. Granite Units
Fixed Investment (Rs. In. Crore)
Employment (In. Persons)
1 2001 3152 196 15258
2 2002 3547 242 17357
3 2003 4129 273 18762
4 2004 4652 313 19929
5 2005 4752 350 21198
6 2006 5135 399 23234
7 2007 5473 451 24561
8 2008 5930 483 25579
9 2009 6095 534 28741
10 2010 6542 597 29822
Mean 4940.7 383.8 22444.1
LGR 1.7172 2.6315 1.6376
t- Value 0.000056* 0.0010* 0.000012* Source: Office of the Commissioner of Industries, Govt. of Andhra Pradesh Note: * Significant at 1 per cent level
79
3152
196
1525
8
3547
242
1735
7
4129
273
1876
2
4652
313
1992
9
4752
350
2119
8
5135
399
2323
4
5473
451
2456
1
5930
483
2557
9
6095
534
2874
1
6542
597
2982
2
0
5000
10000
15000
20000
25000
30000
Uni
ts/In
vesti
men
t/Em
ploy
men
t
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year
Fig.3.2: Registered Granite Units in Andhra Pradesh during 2001-2010
No. of.Granite Units
FixedInvestment(Rs. In. Crore)
Employment(In. Persons)
80
The fixed investment in granite units was of the order of Rs.196 Crore in 2001
which rose to Rs.597 Crore in 2010. The granite units were observed to have provided
employment to 15258 persons in 2001, which has increased to 29822 persons in 2010.
In absolute terms there has been an increase in employment over the years.
During the same period the statistical results from the Table-3.6 conclusively
prove that the Mean value for total number of units, fixed investment and employment
of granite industry in Andhra Pradesh are 4940.7, 383.8 and 22444.1 respectively.
The performance of granite industry in the terms of total number of units, fixed
investment and employment in Andhra Pradesh increased at a linier rate of 1.7172,
2.6315 and 1.6376 per cent respectively and they are significant at 1 per cent level.
Table-3.7
Averages of Fixed Investment and Employment per Unit of Registered Granite Units in Andhra Pradesh during 2001 to 2010
Sl. No Year Average Fixed
Investment Per Unit (Rs. Lakh)
Average Employment Per Unit
(No. of Persons)
1 2001 6.22 4.84
2 2002 6.82 4.89
3 2003 6.61 4.54
4 2004 6.73 4.28
5 2005 7.37 4.46
6 2006 7.77 4.52
7 2007 8.24 4.49
8 2008 8.15 4.31
9 2009 8.76 4.72
10 2010 9.13 4.56
Source: Computed from the Table-3.6
The Table-3.7 reveals that the average fixed investment per unit in 2001 was
Rs.6.22 lakh and it has gradually risen to Rs.9.13 lakh in 2010. The average
employment per unit worked out to 4.84 persons per unit in 2001. It increased to 4.89
in 2002 but the employment has slightly comedown to 4.56 persons in 2010. From the
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Table-3.7, it can be concluded that there was a gradual increasing trend in average
fixed investment per unit and decreasing trend in the field of average employment per
unit of granite industry in Andhra Pradesh. Diminishing trend in employment resulted
from the lack of power supply from the state government. The frequent power cuts led
to improper functioning of the granite factories in the state.
3.10 REGION-WISE WORKING GRANITE UNITS
Table-3.8 Region-wise Number of Granite Units in Andhra Pradesh from 2004 to 2010
Sl. No Region 2004 2005 2006 2007 2008 2009 2010
1 Rayalaseema (4 districts)
967 (20.79)
979 (20.60)
997 (19.42)
1051 (19.20)
1134 (19.12)
1189 (19.51)
1264 (19.32)
2 Costal Andhra (9 districts)
2452 (52.71)
2535 (53.35)
2831 (55.13)
2954 (53.97)
3164 (53.36)
3197 (52.45)
3467 (52.99)
3 Telangana (10 districts)
1233 (26.50)
1238 (26.05)
1307 (25.45)
1468 (26.82)
1632 (27.52)
1709 (28.04)
1811 (27.68)
4 Andhra Pradesh (23 districts)
4652 (100.00)
4752 (100.00)
5135 (100.00)
5473 (100.00)
5930 (100.00)
6095 (100.00)
6542 (100.00)
Source: Indian Bureau of Mines, Nagpur. Dept. of Mines and Geology, Govt. of Andhra Pradesh Note: Figures in parentheses indicate percentage to the respective column totals. The Table-3.8 shows that there were 4,652 granite units in Andhra Pradesh in
2004 of which Telangana had 26.50 per cent, Coastal Andhra had 52.71 per cent and
the Rayalaseema had 20.79 per cent. It can be observed that the number of granite
units in Rayalaseema was comparatively less than those in the other two regions. In
2010, out of 6,542 granite units registered in the State, 27.68 per cent were located in
Telangana, 52.99 per cent in Coastal Andhra and only 19.32 per cent in the
Rayalaseema region. The data in the Table-3.7 has been evaluated and it was found
are that there is a locational disparities of granite units among the three regions of
Andhra Pradesh due to the lack of encouragement and insufficient assistance from the
local as well as the state authorities. Furthermore, political interference is also one of
the deciding factors the in sanction of granite quarries.
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Table-3.9 Growth Rates for Region-Wise Number of Granite Units in
Andhra Pradesh from 2004 to 2010
Sl. No Region Mean/Average LGR
1 Rayalaseema
(4 districts) 1083 1.0782*
2 Costal Andhra
(9 districts) 2942.86 1.2885*
3 Telangana
(10 districts) 1485.43 1.6292*
4 Andhra Pradesh
(23 districts) 5511.29 1.3390*
Source: Computed from theTable-3.8 LGR: Linier growth rate between the periods expressed as a percentage. Note: * Significant at 1 per cent level The Mean value for region-wise number of granite units in Andhra Pradesh
from 2004 to 2010 was 5511.29 for the entire State. Among the different regions the
mean value of number of granite units from 2004 to 2010 was the highest with
2942.86 in Costal Andhra followed by Telangana with 1485.43 and the lowest with
1083 in Rayalaseema region in Andhra Pradesh.
From the above statistical results, it is concluded that the growth of
Granite units in three regions of Andhra Pradesh and combined growth of all the
regions is not statistically significant implying that there is a less growth during the
study period but not significant growth.
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3.11 REGION-WISE FIXED INVESTMENT IN ANDHRA PRADESH
Table-3.10 Region-Wise Fixed Investment of Registered Granite Units in
Andhra Pradesh, from 2004 to 2010 (Rs. In. Crore)
Sl. No Region 2004 2005 2006 2007 2008 2009 2010
1 Rayalaseema
(4 districts)
72
(23.00)
78
(22.28)
96
(24.06)
106
(23.50)
109
(22.57)
127
(23.78)
143
(23.95)
2 Costal Andhra
(9 districts)
152
(48.56)
176
(50.29)
192
(48.12)
224
(49.68)
247
(51.14)
265
(49.43)
289
(48.41)
3 Telangana
(10 districts)
89
(28.43)
96
(27.43)
111
(27.82)
121
(26.82)
127
(26.29)
142
(26.59)
165
(27.64)
4 Andhra Pradesh (23 districts)
313
(100.00)
350
(100.00)
399
(100.00)
451
(100.00)
483
(100.00)
534
(100.00)
597
(100.00)
Source: Indian Bureau of Mines, Nagpur Note: Figures within parentheses indicate percentage to the respective column totals The total fixed investment made in the granite units in the entire State was
Rs.313 Crore in 2004, of which, Telangana accounted for 28.43 per cent, Coastal
Andhra for 48.56 per cent and Rayalaseema for 23.00 per cent. The same trend has
been continued over the years. During the year 2010, the total fixed investment in the
granite units was Rs.597 Crore in the entire State, of which, Telangana accounted for
27.64 per cent, Coastal Andhra for 48.41 per cent and Rayalaseema for 23.95 per
cent.
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Table-3.11 Growth Rates for Region-wise Fixed Investment of Registered
Granite Units in Andhra Pradesh, from 2004 to 2010 (Rs. In. Crore)
Sl. No Region Mean/Average LGR
1 Rayalaseema
(4 districts) 104.4286 2.5020*
2 Costal Andhra
(9 districts) 220.7143 2.3530*
3 Telangana
(10 districts) 121.5714 2.2288*
4 Andhra Pradesh
(23 districts) 446.7143 2.3541*
Source: Computed from the Table-3.10 LGR: Linier growth rate between the periods expressed as a percentage Note: * Significant at 1 per cent level The Mean value for region-wise fixed investment of registered granite units in
Andhra Pradesh, from 2004 to 2010 was 446.7143 for the entire State. Among the
different regions, the mean value was the highest with 220.7143 in Coastal Andhra
followed by Telangana 121.5714 and the lowest with 104.4286 in Rayalaseema
region in Andhra Pradesh.
From the above statistical results, it is concluded that the growth of fixed
investment of Granite units in the three regions of Andhra Pradesh and combined
growth of all the regions are statistically significant at 1 per cent level indicating that
there is a significant growth of fixed investment in Granite units of Andhra Pradesh
and also in the three regions of Andhra Pradesh during the study period.
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3.12 PRODUCTION OF GRANITE INDUSTRY IN ANDHRA PRADESH
Table-3.12 Production of Granite Industry in Andhra Pradesh
(In. Tonnes)
Sl. No Year Black % of
Growth Colour % of Growth Total % of
Growth 1 1989-90 23244 -- 37335 -- 60579 --
2 1990-91 31818 36.87 39729 6.41 71547 18.11
3 1991-92 45948 44.41 40617 2.24 86565 20.99
4 1992-93 61272 33.35 77301 90.32 138573 60.08
5 1993-94 85416 39.40 125334 62.14 210750 52.09
6 1994-95 107037 25.31 152655 21.80 259692 23.22
7 1995-96 122946 14.86 68916 -54.86 191862 -26.11
8 1996-97 150516 22.42 169899 146.53 320415 67.00
9 1997-98 190704 26.70 193101 13.66 383805 19.78
10 1998-99 206004 8.02 212715 10.16 418719 9.10
11 1999-00 289665 40.61 263712 23.97 553377 32.16
12 2000-01 344226 18.84 301950 14.50 646176 16.77
13 2001-02 380637 10.58 312681 3.55 693318 7.30
14 2002-03 565596 48.60 507348 62.26 1072944 54.75
15 2003-04 756777 33.80 520632 2.62 1277409 19.06
16 2004-05 886698 17.17 719412 38.18 1606110 25.73
17 2005-06 1508475 70.12 909516 26.42 2417991 50.55
18 2006-07 1388925 -7.93 1001715 10.13 2390640 -1.13
19 2007-08 1425816 2.66 936855 -6.47 2362671 -1.17
20 2008-09 1355826 -4.91 927408 -1.01 2283234 -3.36
21 2009-10 1000068 -26.24 946299 2.04 1946367 -14.75
22 2010-11 1313025 31.30 1439975 14.25 2757000 41.65
23 2011-12 1835760 39.81 1931289 26.63 3767049 36.64
Source: Dept. of Mines and Geology, Govt. of Andhra Pradesh
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The Table-3.12 reveals that the production of black and colour granite in
Andhra Pradesh. The production of black granite increased from 23,244 tonnes to
13,13,025 tonnes from 1989-90 to 2011-12. And its percentage growth was 39.81 per
cent during 2011-12. In the case of colour granite, the production increased from
37,335 tonnes to 19,31,289 tonnes from 1989-90 to 2011-12. The total production of
(Black and Colour) granite was increased from 60,579 tonnes to 37,67,049 tonnes
from 1989-90 to 2011-12. And increase at a rate of 36.64 per cent during 2011-12.
Hence, the production performance of granite industry in Andhra Pradesh has made
this industry a thrust area. Government policies, innovative technology, strength of
talented manpower to set up granite units and other, factors will further help increase
the production of granite and help faster the growth of granite industry in Andhra
Pradesh.
Table-3.13 Growth Rates of Granite Production in Andhra Pradesh
From 1989-90 to 2011-12
Sl. No Production of Granite ACGR R2-Value t-Value F-Value
1 Black 19.6541 0.9549 21.093* 444.9045*
2 Colour 19.7136 0.8818 12.519* 156.7246*
3 Total 18.5224 0.9642 23.793* 566.0933*
Source: Computed from the Table-3.12 ACGR: Annual Compound Growth Rate Note:* Significant at 1 per cent level
The growth rates of production of granite industry in Andhra Pradesh are
presented in Table-3.13. From the analysis, it is concluded that the growth of Black
Granite and Colour Granite increased at the rate of 19.6541, 19.7136 respectively
during the period 1989-90 to 2011-12. The overall growth of production of Granite
during the same period is 18.5224 per cent per annum in Granite industry in Andhra
Pradesh. The coefficient of determination (R2) of Black, Colour and overall Granite
production was significant at 1 per cent level. The F-values are also significant at 1
per cent level for all the three cases.
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3.13 TRENDS IN DEVELOPMENT OF GRANITE INDUSTRY IN CHITTOOR DISTRICT
Mineral based industry is playing a significant role in the development of
industrial sector in the district as well as in the development of the economy of
Chittoor district. In mineral based industrial sector, granite industry has become a
major income generating solirce due to more availability of raw granite in the district.
Granite industries play a pivotal role in the economic development of Chittoor
district. Granite industries have the advantages of generating employment with better
income levels, improving the livelihoods of the people and reducing regional
disparities through dispersal of units into different parts of the district. Granite firms
are the large, medium and small scale firms play a catalytic role in achieving socio-
economic goals with the help of producing better output sizes at regional level.
Recognising the suitability of granite units has been accorded due priority in the
Chittoor district.
The granite industry has an important role in small scale industrial sector for
industrial development in economy of the district. The Chittoor district with 240
working granite units and vast resources of granite is making all out efforts to exploit
and optimize granite production establishment in small scale sector and undertake
value addition. It has identified SSI sector as one of the growth engines for overall
development of industry and infrastructure in Chittoor district.
Major granite deposits are available in Chittoor, Gudipala, Anupalli,
Chandragiri, Tirupati, Kuppam and Western parts of the district. The development of the granite business into a small scale industry had to
rely on the invention of more powerful and more efficient tools and machinery to deal
with this obdurate stone. The production of granite industry has a significant place in
small scale industries in Chittoor district of Andhra Pradesh. The granite industry
produced80.98thousandtonnes of the granite and its value was Rs.2850.09 lakh during
2010-11 in Chittoor district. Now a days the demand for the granite stone from the
people increases in the Chittoor district. It is because of most of the people use the
granite stone in building construction purposes in the district. There is existence of
granite industrial units, both in large or medium and small scale sectors in the district.
88
But most of the granite units are working under the small scale industrial sector in
Chittoor district. Chittoor district with vast mineral potential has worked out certain strategies
to explore, exploit and develop the granite industrial sector with the constructive
cooperation of both private and public sectors. The district has focused on the
inventory of mineral resources, key issues of legislation, objectives and strategies in
time with the National Mineral Policy (2008) in accelerating the growth in the liberal
regime thereby leading to the overall development of the granite industry. Department of Mines and Geology in Chittoor district is always innovative to
improve the mineral administration for the development of granite industry, through
interaction with the district level officers and the stakeholders. Government has also
taken measures required in the right earnest with the practice involvement of all the
stakeholders. A lot of thrust is given to pre-fixed time disposal of mineral concession
applications to bring additional areas under granite mining and also for resource
mobilization. Government extends support for grounding of high-tech and innovative
value added mineral projects under single window industrial clearance. 3.14 WORKING AND NON-WORKING GRANITE UNITS
Table-3.14 Year-wise Working and Non-working Granite Industries in Chittoor District
Sl. No. Years Working Non-
working Total Column 2 as a % of column 5
Column 3 as a %
column 6 1. 1995-96 116 15 131 88.55 11.45 2. 1996-97 126 18 144 87.50 12.503. 1997-98 125 11 136 91.91 8.09 4. 1998-99 133 19 152 87.50 12.50 5. 1999-00 140 21 161 86.96 13.04 6. 2000-01 153 17 170 90.00 10.00 7. 2001-02 161 25 186 86.56 13.44 8. 2002-03 164 31 195 84.10 15.90 9. 2003-04 169 21 190 88.95 11.05 10. 2004-05 180 27 207 86.96 13.04 11. 2005-06 193 14 207 93.24 6.76 12. 2006-07 210 24 234 89.74 10.26 13. 2007-08 224 29 253 88.54 11.46 14. 2008-09 222 30 252 88.10 11.90 15. 2009-10 231 20 251 92.03 7.97 16. 2010-11 240 25 265 90.57 9.43
Source: Dept. of Mines and Geology, Chittoor
89
88.5
511
.45
87.5
12.5
91.9
18.
09
87.5
12.5
86.9
613
.04
90
10
86.5
6
13.4
4
84.1
15.9
88.9
5
11.0
5
86.9
613
.04
93.2
4
6.76
89.7
410
.26
88.5
4
11.4
6
88.1
11.9
92.0
3
7.97
0
10
20
30
40
50
60
70
80
90
100
Gra
nite
Uni
ts
1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Years
Fig.3.3: Year-wise Working and Non-working Granite Industries in Chittoor District
WorkingGranite Units
Non-workingGranite Units
90
The Table-3.14 and Fig.3.3 points out that there are working and non-working
granite units in Chittoor district from 1995-96 to 2010-2011. The data reveals that the
total number of working units has increased from 116 units in 1995-96 to 240 units in
2010-11 and their percentages were 88.55 per cent in 1995-96 and 90.57 per cent in
2010-11 respectively. On the other hand, the total number of non-working units
increased from 15 units in 1995-96 to 25 units in 2010-11, and percentage are 11.45
per cent and 9.43 per cent respectively. Therefore the total number of working and
non-working units has increased from 131 in 1995-96 to 265 units by 2010-11. Hence
it is indicating that the establishment and development of granite units in Chittoor
district is slow in position over the years. The statistics in the above table evaluate that
the number of non-working granite units are less compared with the other sectoral
industries in the district.
3.15 SOCIAL CATEGORY-WISE GRANITE INITS
Table-3.15
Social category-wise Granite Units in Chittoor District during 2010-11
S. No Social Category Number of Units Percentage to
Total
1. Open Category 211 87.92
2. Backward Castes 24 10.00
3. Scheduled Caste 5 2.08
4. Scheduled Tribes Nil Nil
Total 240 100.00
Source: Dept. of Mines and Geology, Chittoor
Out of the total 240 Granite units, 87.92 per cent of the units belong to persons
who belong to open category castes. The units owned by persons of backward classes
account for 10 per cent and only 2.08 per cent of the units are owned by the scheduled
castes. The Schedule Tribes, they do not own granite units in the study area. This
shows that majority of the Granite units are owned and managed by forward castes
and some by the backward castes. The distribution of units by caste of the owner by
different categories of granite units is given in the Table-3.15.
91
3.16 OWNERSHIP PATTERN OF GRANITE UNITS
Table-3.16 Distribution of Granite Units by the Type Organization in Study Area by 2010-11
Sl. No Type of Organization No. of Units Percentage to
Total
1. Proprietary 114 47.50
2. Partnership 118 49.17
3. Private Limited 8 3.33
Total 240 100.00
Source: Asst. Geologist, Dept. of Mines and Geology, Chittoor
The Table-3.16 shows that out of 240 units, 47.50 per cent are proprietary
concerns, 49.17 per cent are partnership firms and the remaining 3.33 per cent are
private limited companies. The data in the table reveals that in the case of granite
industrial units, most of them partnership concerns, proprietary and private limited
companies are prevalent in the case of units involving more capital investment.
3.17 MANDAL-WISE LOCATION OF GRANITE UNITS
Table-3.17 Mandal-Wise Number of Granite Units in Chittoor District by 2010-11
Sl. No Name of the Mandal No. of Units Percentage to Total 1. Bangarpalyam 5 2.082. Chittoor 104 43.333. G. D. Nellore 14 5.834. Gudipala 31 12.925. Irala 2 0.836. Penumur 2 0.837. Yadamari 19 11.258. Tirupati (Rural) 9 3.759. Renigunta 7 2.9210. B. N. Kandriga 2 0.8311. Nagari 1 0.4212 Madanapalle 4 1.6713 Palamaner 11 4.5814 Kuppam 21 8.76
Total 240 100.00Source: General Manager, District Industries Centre, Chittoor
92
2.08
43.33
5.83
12.92
0.83 0.83
11.25
3.75 2.920.83 0.42 1.67
4.58
8.76
0
5
10
15
20
25
30
35
40
45
Num
ber
of G
rani
te U
nits
Bang
arpa
lyam
Chitt
oor
G. D
. Nel
lore
Gud
ipal
a
Iral
a
Penu
mur
Yad
amar
i
Tiru
pati
(Rur
al)
Reni
gunt
a
B. N
. Kan
drig
a
Nag
ari
Mad
anap
alle
Pala
man
er
Kup
pam
Name of the Mandal
Fig.3.4: Mandal-Wise Number of Granite Units in Chittoor District by 2010-11
Percentage toTotal
93
The Table-3.17 shows that there were 240 Granite units in selected mandals of
Chittoor district by 2010-2011. Among the selected mandals, Chittoor stands first
with 43.33 per cent of granite units and Nagari occupies the last position with the 0.42
per cent. Gudipala Mandal is in second position. It has 12.92 per cent of granite units.
11.25 per cent of the units are located in Yadamari Mandal. Kuppam, G.D.Nellore,
Palamaner, Tirupati Rural, Renigunta, Bangarpalyam, Madanapalle, B.N.Kandriga,
Irala and Penumur Mandals have 8.76,5.83, 4.58,3.75, 2.92, 2.08, 1.67, 0.83, 0.83 and
0.83 per cent of granite units respectively. This is, however, the range of located
granite units is among the various mandals in Chittoor district.
3.18 TRENDS IN FIXED INVESTMENT IN GRANITE INDUSTRY Table-3.18 gives the details of trends in investment on granite industries in
Chittoor district.
Table 3.18 Fixed Investment on Granite Units in Chittoor
District from 2001 To 2011
Sl. No Year Investment
(Rs. In. Crore)
1. 2000-01 36.10
2. 2001-02 39.15
3. 2002-03 43.02
4. 2003-04 47.12
5. 2004-05 50.55
6. 2005-06 56.64
7. 2006-07 61.05
8. 2007-08 68.00
9. 2008-09 79.47
10 2009-10 91.97
11 2010-11 96.06
Source: 1. Dept. of Mines and Geology, Chittoor 2. District Industrial Centre, Chittoor
The fixed investment of granite industrial units (in. crore) in Chittoor district
from 2000-01 to 2010-11 is shown in Table-3.18. The investment in granite industrial
units has increased from Rs.36.10 Crore in 2000-01 to Rs.96.06 Crore by 2010-11.
94
Therefore, the granite industrial units in Chittoor district have registered considerable
growth in terms of investment over the years.
3.19 GRANITE INDUSTRY-EMPLOYMENT The Table-3.19 presents the employment opportunities in granite units in
study area.
Table-3.19 Employment of Granite Units in Chittoor District from 2001 to 2011
Sl. No Year Employment (In. Persons)
1. 2000-01 840 2. 2001-02 905 3. 2002-03 978 4. 2003-04 1024 5. 2004-05 1065 6. 2005-06 1040 7. 2006-07 1065 8. 2007-08 1154 9. 2008-09 1427 10 2009-10 1764 11 2010-11 2034
Source: Dept. of Mines and Geology, Chittoor
The employment in persons in granite industrial units in Chittoor district from
2000-01 to 2010-11 is shown in Table-3.19. The employment in persons in the granite
industrial units has increased from 840 persons in 2000-01 to 2034 persons by 2010-
11. Hence the employment in persons has been increased significantly in the granite
industrial units over the years. Therefore the granite industrial units in Chittoor
district have registered a substantial growth in terms of the employment over the
years.
3.20 GRANITE INDUSTRY-PRODUCTION
Table-3.20 presents the granite production and its value of granite units in
Chittoor district.
95
Table-3.20 Production and Value of Granite Units in Chittoor District
Sl. No Year Production
(In. Tonnes)
Value
(Rs. In. Lakh)
1. 1995-1996 23273.28 552.91
2. 1996-1997 32076.6 751.39
3. 1997-1998 30750 705.00
4. 1998-1999 41842.91 980.36
5. 1999-2000 48114.07 1204.14
6. 2000-2001 50061.7 1213.33
7. 2001-2002 18648.76 791.31
8. 2002-2003 40872.63 1325.52
9. 2003-2004 63825.67 1545.42
10. 2004-2005 66788.19 1670.67
11. 2005-2006 81253.36 2111.06
12. 2006-2007 78344.57 2092.43
13. 2007-2008 70891.56 1821.53
14 2008-2009 68119.68 5698.37
15 2009-2010 65990.52 2226.51
16 2010-2011 80983.5 2850.09
Source: Dept. of Mines and Geology, Chittoor.
The Table-3.20 reveals details of production of granite in Chittoor district. The
data has revealed that the production was the highest in 2005-06. The quantity of
production of granite was 81253.36 tonnes and the value of production of granite at
Rs.5698.37 lakh, was the highest in 2008-09. The quantity of production of granite
was the lowest registering 18648.76 tonnes in 2001-02 and the value of granite
recorded was the lowest at Rs.552.91 lakh during 1995-96. From 2003-04 onwards
the performance of granite industry was somewhat satisfactory.
96
References
1. Andhra Pradesh Minor Mineral Concession Rules, 1966.
2. Granite Conservation and Development rules, 1999
3. Department of Mines and Geology, Government of Andhra Pradesh
4. Commissioner of Industries, Government of Andhra Pradesh
5. District Industry Centre, Chittoor
6. Statistical Abstract - 2011, Chief Planning Officer (CPO), Chittoor
7. Various Annual Reports, Department of Mines and Geology, Chittoor