Thursday, April 2, 2009

Hard days ahead for stone crushing industry

BY NILESH KHANDEPARKAR
PANJIM:
The wheels of crusher industry are grinding in full swing. And, with it, the man behind the wheel is rejoicing. But, given the situation facing this industry, it may soon fall on bad days.

For 34 years now, Ragvendra Bhat owns two crushers in St Jose de Areal. Ipso facto, he knows the crusher industry like the back of his palm. A reason why he is the Secretary of the South Goa Crushers Association.

Facts of the case

Approximately a year ago, industrial chieftains in the crusher industry were forced to sit up and take notice. It all started with a petition filed in the High Court (HC) against the crushers located in St Jose de Areal, Gudi-Paroda and Sarzora by one Elcee Da Costa, a South Goa resident.

Highly placed sources in the legal fraternity told GT that HC converted this petition to include the entire state of Goa. In simple words, crushers in the whole of Goa came under judicial scanner.

“It directed the state government to file a report on the crusher industry. The government reverted, promising proceedings under Section 31 and Section 33 of the Land Revenue Code,” said a source in the legal fraternity. While the Court granted a time frame of six months with effect from September 2008 for the state government to file the aforesaid report, the government asked for another extension of the time limit as the deadline was breathing down its neck.

“The High Court granted an extended time limit of five months with effect from March 09,” said the source.

Meanwhile, even as the HC extended the deadline, the government released a circular exempting crusher industry from land conversion sanad with retrospective effect. The extended deadline of five months expires in August 2009. Interestingly, the petition is still pending before the HC.

About the industry

Stepping into the crusher industry involves obtaining a host of licences. According to highly placed sources in this industry, what starts with a Panchayat NOC also involves obtaining a licence from the Small Scale Industries Department, Goa State Pollution Control Board (GSPCB) and relevant property documents.

“The HC wanted to know whether all crushers had the requisite licence from the GSPCB. Around 30 crushers did no possess this licence. Thereafter, all crusher owners took care to obtain all the relevant licences,” adds Bhat.

Sources say the petitioner’s main grouse was related to the pollution aspect as well. “All crushers/quarries are situated in non-industrial zones like agricultural zone, social forestry, cultivable areas and next to settlement zones,” said the top legal source.

At the other end of the spectrum, crusher owners stood their ground. “My crusher started its operations in 1973 at a time when the conversion sanad was not essential. What was earlier a non-settlement area turned into a settlement zone much later,” claimed Bhat.

Business model

Briefly put, the crusher industry works this way. Black stone is extracted from hills -- a job entrusted to the quarry industry. The stone so extracted -- a large structure -- is then broken down into manageable smaller units. These are then transferred to crushers for further reducing their size into manageable ballast.

The ballast has various uses -- in the construction industry, roads, etc. It also varies in size depending on its use. So, we have different sizes of ballast: half inch, three-fourth inch, 1.5 inches, 2 inches and so on. Bigger boulders are also used in large constructions.

“For generating ballast of four trucks per day, raw material to the tune of six trucks in the form of stone from quarries is required as an input on a daily basis. The crusher industry works on a seasonal basis, closed in the monsoons as extraction of stone from quarries becomes impossible due to inclement weather,” informs Bhat.

Yet another top source from the crusher industry adds: “The building industry has to continue. If the crusher industry in Goa falls on bad days and has to close down, ballast from neighbouring states like Maharashtra and Karnataka will fill the vacuum.”

Hard Facts
  • Total crushers in Goa: 200 (approx)
  • Total crushers in South Goa: 50
  • Turnover of one crusher per day: Rs 3,000
  • Net profit per day: 10% of the above
  • Employment potential (direct): 12 labourers
  • Indirect employment: Drivers, cleaners, mechanics, stone cutters, stone extractors
  • Total employment (direct & indirect) in crusher industry: 2,500 (approx)
  • Location of crushers in S Goa: St Jose de Areal, Sanguem, Sanvordem, Balli
  • Location of crushers in N Goa: Valpoi, Pale, Guleli

(Source: R P Bhat, secretary, South Goa Crushers Association)

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