Imports of Marble Blocks in India (Policy Changes)

Investment in marble manufacturing and processing units in India is very large but quality of production is always inferior and has been deteriorating over the years due to shortage of acceptable quality marble blocks in India. This shortage has been the result of changes in mining policies due to environmental reasons. Due to this reason alone, many quarries supplying acceptable quality marble blocks to the manufacturing units have been closed down. Giving due consideration to representations by marble manufacturer associations, the Government of India has decided to issue licences for import of rough marble and granite slabs upto 110,000 tons in addition to the existing 140,000 tons for domestic consumption to importers whose elegibility will be determined as follows:-

1. The units should have installed marble gang saw machines. (These licenses are specifically unavailable for 100% Export Oriented Units that already have licenses to import rough marble and to units that have already been granted special import licences from the earlier provisions for import of 140,000 tons per annum.)
2. All units elegible for these licenses should have indigenous sales turnover of marble slabs/tiles only, of Rs.1.00 Crore (Rupees one Crore only) and above in each of the three financial years 2004-05, 2005-06 and 2006-07.

The floor price for imports is the same as per the special import licences issued. The licences will be issued upto 110,000 tons on a pro rata basis determined by the turnover of the elegibile units. There is still a further ceiling on the licences:-

1. Units having one installed gang saw will get a maximum license of 3,000 tons per annum.
2. Units having more than one gang saw will get a maximum license of 3,000 tons per annum for the first gang saw and 1,500 tons per annum for each additional gang saw.

Import is on an actual user basis and as usual returns will have to be filed and a pass book maintained.

For both the licences (140,000 tons and 110,000 tons) a Chartered Accountants certificate will have to be submitted certifying the elegibile turnover.

This change in policy was most needed as the manufacturers will have options of importing good quality rough blocks for processing, thereby making it economically viable and of acceptable quality. This will to some extent improve the quality of processed marble slabs and tiles available in India as many units can save the cost of Rs.10,000 to Rs.11,000 per ton on the licenses and use the amount in importing better quality first choice blocks.

However, this still seems to be a half hearted gesture by the government and more should be done by the government regarding imports of marble blocks in India. Marble blocks are very expensive and to ensure smooth running of the units the inventory required is very large. For a unit to maintain so much inventory it is very costly. The Government should ideally free the imports of marble into the country. This will to a large extent reduce the pressure on quarrying operations in India and we can have a safe environment policy and conserve our resources. Trading in imported marble blocks should also be allowed. This way our manufacturing units will find little need to commit vast financial resources in blocks and can source blocks readily from traders as and when needed to fulfil orders. Currently, a manufacturing unit will have to import blocks well in advance considering procedural delays and can also get stuck with inventory that will be lying idle and wasting huge financial resources and costs. Flexibility of sourcing raw materials is the key to economically viable processing and will ultimately benefit the domestic end users who are currently paying through their noses for imported junk.