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Draft Gujarat Granite Policy 2017 Commissioner of Geology and Mining, Gujarat June 2017 1

Gujarat Granite Policy

2017

Commissioner of Geology and Mining, Gujarat

June 2017

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Table of Contents

1. Legal framework and duration of Gujarat Granite Policy

3

 

2. Preamble

4

3. Background and Scope of Policy

6

3.1. India in global Granite industry and strategic needs of the sector

6

3.2. Domestic Granite industry

8

3.3. Gujarat Granite sector SWOT analysis

9

4.

Framework

12

4.1. Policy Statement

12

4.2. Objectives

12

4.3. Strategic goals of Gujarat Granite Policy (GGP)

12

5.

Focus areas

13

5.1. Governance

13

5.2. Exploration and physical analysis

13

5.3. Selection of Granite mining leases for auction

14

5.4. Post auction support

14

5.5. Value addition of raw Granite

14

5.6. Granite Processing Cluster and Granite Mining Cluster

14

5.7. Increasing efficiency of institutions catalysing development

15

5.8. Support in procurement and development of new technology

15

5.9. Facilitate centres of excellence and institutions for skill enhancement

15

5.10. Support in market development

16

 

Annexures

17

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1. Legal framework and duration of Gujarat Granite Policy

1.1. In exercise of the power conferred under Section 15 (1) of the Mines and Minerals (Development and Regulation) Act,

1957, the Government of Gujarat hereby notifies The Gujarat Granite Policy 2017.

1.2. The Gujarat Granite Policy, 2017 shall come into force with effect from the date of notification and shall remain in

force for a period of 36 months from the date of issuance of the Policy, unless specified otherwise.

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2. Preamble

2.1. Gujarat is one of the most industrialized states in the country. The State has been at the forefront of development of

the nation for the past decade. With investor friendly business climate and infrastructure availability, Gujarat State Domestic

Product (SGDP) has been rising at an average yearly growth rate of approximately 9% since 2011-12. 1

2.2. Manufacturing sector in Gujarat is at the forefront of this growth contributing around 31% to State Gross Domestic

Product (SGDP) 2 . The sector has grown at a CAGR of 14% from FY 2011-12 to FY 2015-16. With increasing demand and

population, there is a need for quantum jump in the sector. Recently, Gujarat Industrial Policy 2015 has been formulated to

provide necessary momentum to the sector by facilitating investments through strategic partnerships, promoting value

addition for development of entire value chain, encouraging sustainable development and enhancing skills for employment.

2.3. Mining is the primary process in the value chain of manufacturing, hence, mining & mineral sector of the State has to

be in line with the strategies messaged in industrial policy of the State.

2.4. The contribution of the mining to SGDP in FY 2015-16 was 0.65%.

contribution of the mining to SGDP in FY 2015-16 was 0.65%. Source: Socio Economic Review 2016-17,

Source: Socio Economic Review 2016-17, Gujarat

1 CAGR of SGDP at constant price with base year 2011 2 Socio Economic Review- 2016-17, Gujarat

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Draft Source: Latest publicly available Socio-Economic Survey Reports of various states (as on 05.06.2017) As illustrated

Source: Latest publicly available Socio-Economic Survey Reports of various states (as on 05.06.2017)

As illustrated in above graph, contribution of mining to SGDP is one of the lowest in Gujarat compared to major mining

states having similar mineral profile in the country. Thus, there is a need to focus on developing policies for facilitating

investments in the mining sector by establishing potential resources through exploration and by developing value addition

industries in the State. The Government is committed to ensure development of mining sector in sustainable and integrated

manner to facilitate employment in the remote areas of the State and also for the growth of Micro, Small & Medium

Enterprises (MSMEs).

2.5. With this objective and within the above perspective, the Government of Gujarat decided to formulate "The Gujarat

Granite Policy 2017”.

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3. Background and Scope of Policy

3.1.

India in global Granite industry and strategic needs of the sector

3.1.1.

India was the third largest producer of Granite with a production of around 50 million square metres in 2014.

million square metres

180

160

140

120

100

80

60

40

20

0

World Granite production, 2014

160

75 50 15 7 6 3 2.5 2 2 2 1.5 3
75
50
15
7
6
3
2.5
2
2
2
1.5
3

China

Brazil

India

Saudi

Italy

Spain

Vietnam Taiwan

Russia

Egypt

Turkey Portugal

Others

 

Arabia

Source: World Natural Stone Association

3.1.2. India was also the largest exporter of raw Granite. The country exported raw Granite worth USD 532 million and

processed Granite 3 worth USD 914 million in 2015. But, unlike other major exporters like China and Brazil that export mainly processed/ value added Granite, India majorly exports raw Granite in terms of quantity. In FY 2015, 75% of India’s Granite export in terms of quantity comprised of raw Granite while 25% comprised of processed Granite.

3 Processed Granite in this document shall mean the Granite produced after processing of any kind on raw Granite block like cutting, polishing, chemical treatment etc.

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Raw Granite importers -2015

945

6000 1000 91 4000 500 2000 203 135 62 0 0 Thousand Tonnes USD Million
6000
1000
91
4000
500
2000
203 135
62
0
0
Thousand Tonnes
USD Million

Blocks6000 1000 91 4000 500 2000 203 135 62 0 0 Thousand Tonnes USD Million Crude/roughly

Crude/roughly trimmed-2015 945 6000 1000 91 4000 500 2000 203 135 62 0 0 Thousand Tonnes USD

Total trade value-2015 945 6000 1000 91 4000 500 2000 203 135 62 0 0 Thousand Tonnes USD

Source: United Nations Commodity Trade Statistics Database

Processed Granite importers -2015 2500 622 2000 1480 2000 1500 1500 1000 580 1000 292
Processed Granite importers -2015
2500
622
2000
1480
2000
1500
1500
1000
580
1000
292
282
500
500
0
0
Cut/sawn slabs
Worked granite
Total trade value
Thousand Tonnes
USD Million

Source: United Nations Commodity Trade Statistics Database

3.1.3. China is the largest importer of raw Granite and largest exporter of processed Granite. The country exported processed

Granite worth USD 4812 million in 2015. The country has evolved with a strategy of importing large volumes of crude/roughly trimmed Granite mainly from India; processing them using low cost labour and exporting processed Granite to the developed markets. India accounts for two-third of China’s crude/roughlytrimmed Granite imports. As China imports large volumes from India, it enables China to dictate prices.

3.1.4. Major importers of processed Granite from China are USA, Japan, Korea, Germany and Iraq. Gujarat has logistics

advantage and raw material availability to increase its global market share in processed Granite. Thus, the Policy aims at

facilitating investment in value addition of Granite in the State with impetus on promoting new and advanced technology for cutting and polishing of Granite to compete with Chinese exports.

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3.2.

Domestic Granite industry

3.2.1.

Granite resources are found in 17 states in India. However, Granite reserves are establsihed only in 7 states i.e.

Rajasthan, Odisha, Karnataka, Kerala, Madhya Pradesh, Tamil Nadu and West Bengal. Nearly 98% of Granite reserves are located in Rajasthan, Odisha and Karnataka that have a share of 42%, 30% and 26% in India’s total Granite reserves respectively.

3.2.2. Andhra Pradesh is the largest Granite producing state in India. Although, Granite resources in the State do not fall

under reserves category, the State has been exploiting its resources and is the leading state in terms of value of Granite production. It accounts for more than 50% of total value of reported Granite production in India. Apart from Andhra Pradesh, Karnataka, Kerala, Rajasthan and Tamil Nadu are major contributors to value of Granite production in India.

major contributors to value of Granite production in India. Source: Indian Bureau of Mines 3.2.3. Gujarat

Source: Indian Bureau of Mines

Granite production in India. Source: Indian Bureau of Mines 3.2.3. Gujarat has the fourth largest resources

3.2.3. Gujarat has the fourth largest resources of Granite in India. The resources are located in Sabarkantha, Banaskantha,

Mehsana, Panchmahal, Dahod, Vadodara, Amreli, Bhavnagar and Kachchh districts of Gujarat. The State has no proven reserves and there is a need to establish the potential reserves in Gujarat through exploration to attract investment in Granite sector.

Raw Granite production in the State in FY 2015-16 was around 1.40 lakh tonnes. Most of the raw Granite produced in Gujarat (apart from raw Granite slabs for exports) are processed in Rajasthan. For processing of stones, the Government of Rajasthan has developed dedicated Industrial Areas in Kishsangah, Udaipur, Alwar, Chittorgadh and Bikaner districts.

The Department of Commerce, Ministry of Commerce and Industry, Government on 18th September 2016 notified the new import policy for Marble and Travertine Blocks, and Marble and Granite Slabs. The Minimum Import Price (MIP) on the import of Granite Slabs have been reduced to USD 50 per sq meter to address the distortion associated with MIP. Also, most of the processed Granite from Rajasthan enters Gujarat and is exported from Kandla Port. Thus, this Policy aims to harness State’s strategic location and infrastructure to promote value addition and mining of Granite in the State.

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3.3.

Gujarat Granite sector SWOT analysis

3.3.1.

Strengths

Vast resources: Gujarat has fourth largest resource of Granite accounting for 18% of country’s resources as on

01.04.2010.

Infrastructure for export: Gujarat is endowed with longest coastline in the country with 42 ports. The State contributed around 19% of India’s total exports (including all commodities) in 2014-15. Kandla Port is one of the key Granite exporting ports in the country apart from Chennai Port, New Mangalore Port, and Krishnapatnam Port.

Proximity to major markets of processed Granite: Gujarat is strategically located at the westernmost part of India. Italy, Germany and Middle East countries are major importers of processed Granite and Gujarat has logistic advantage over China and other states in the country for exports to these nations. The logistic infrastructure of the State can be strategically utilized to increase the market share of the country in global processed Granite market.

Availability of raw material: Gujarat is located in the neighborhood of major stone producing regions like Rajasthan, western part of Uttar Pradesh and Madhya Pradesh. Also, raw Granite can be sourced through major Granite exporting countries like Brazil. Thus, the State provides the necessary raw material security to the investors in Granite sector.

Investor friendly policies: Gujarat Government is committed to promote policies for promoting “Ease of Doing Business” (3 rd in Ease of Doing Business Ranking) in the State. Investment Facilitation Portal, Investor Support System, Chief Minister Cabinet Committee for Industrial Policy and Monitoring (CCCIPM) etc ensure early redressal of bottlenecks in development of industries in the State. The State organizes India’s largest business summit Vibrant Gujarat to enhance the government business interaction in various sectors.

3.3.2.

Weaknesses

No proven reserves: Despite having vast resources of Granite, no proven reserves of the stone are identified in the State.

3.3.3.

Opportunities

Boom in construction activities: As Granite is primarily used in construction industry, growth in construction sector drives demand of Granite. As per Global Construction Outlook 2020 report, global construction industry currently stands at USD 8.5 trillion. It is expected to reach USD 15 trillion by 2025 i.e. value of construction sector is expected to double in the coming decade. Major drivers for this growth will be China, India and USA, which are expected to account for 60% of the overall growth. In India, Andhra Pradesh, Gujarat, Maharashtra and Tamil Nadu

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- accounted for more than 50 per cent of the projects funded by banks and financial institutions (FIs) in 2015-16 4 . From 2001-2010, INR 99,805 Crore has been invested in infrastructure in Gujarat and INR 1.18 lakh Crore has been planned for 2010-2020 in Big 2020 Vision of Government of Gujarat. Gujarat is one the most urbanized state in the country with 42% of the total population of the State residing in the urban area. With increased economic activity in the State, large population are migrating from within and outside the state into the urban areas of Gujarat. As a result, as per Socio-Economic Review 2015-16, Gujarat, the urban population in Gujarat is growing at a rate of 36%. This has increased the demand of urban infrastructure like houses, metros, bridges etc. in the State.

Value addition industry: India is mostly exporting raw Granite blocks. Thus, with availabilityof raw material and infrastructure, Gujarat can emerge as a hub for cutting and polishing of Granite byfacilitating investment in Granite processing industry.

Technology upgradation: Upgradation in technology has helped producers in reducing costs for production and processing of Granite. Use of modern technology has helped China in achieving lower cost of processing than its peers and subsequently acquiring major share of global processed Granite market. In India, manufacturing of short

slabs costs nearly Rs. 37/sq. ft. while in China it costs Rs.17/sq. ft. as Chinese use modern technology in cutting

and

processing of slabs. In China generally a 6.50 mm thick blade is used for cutting Granite while in India 10.50

mm

thick blade is used which results in more wastage and lower productivity. Gujarat needs to promote latest

technology available to increase productivity and efficiency of Granite production to enable producers to produce

and process Granite of high quality at low cost.

Employment generation potential: The production target of 14 lakh tonnes per year by 2020 is expected to generate employment for over 2000 people in the newly auctioned Granite Bearing Area.

3.3.4. Threats

Stiff competition from China in processed Granite export market: Because of low cost of production of processed Granite products from China (In India, short slabs costs nearly Rs. 37/sq. ft. while in China it costs Rs.17/sq. ft.), Indian Granite producers are unable to compete with Chinese sale prices in export market. As a result, China’s share in Granite export market is increasing steadily. If Indian Granite players will not upgrade their machineries, they may keep losing their processed Granite export share to Chinese players.

Shortage of skilled labour, increasing labour cost: Granite mining and processing require skilled manpower that understand the patterns of fractures and joints present in the stone. India is suffering from shortage of skilled labour. As per the Economic Survey of India, present skilled workforce in India is only 2% of overall workforce. Also Consumer Price Index (CPI) for Industries Workers has increased at a CAGR of about 10% in past ten years as per

4 Reserve Bank of India Report

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Ministry of Labour. Increasing labour cost will result in increase in cost of production for Granite industry. Also, shortage of skilled labour will result in lower manpower productivity.

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4. Framework

4.1.

Policy Statement

4.1.1.

A futuristic Policyaiming to enhance contribution of Granite sector in value of mineral production and manufacturing

sector of Gujarat, thereby contribution of mining sector in SGDP. The policy focuses on quality and techno-economic

efficiency by promoting value addition through latest technology in the sector while generating employment and achieving

economic, environmental and social sustainability.

4.2.

Objectives

4.2.1.

To enhance and expedite exploration of Granite resources to establish Granite reserves using latest technologies

through strategic partnership with private players and developing in-house facilities.

4.2.2. To enhance production of Granite in the State and expedite the process of auction of Granite leases.

4.2.3. To encourage investors to invest in value addition industries in Granite by creating favourable investment policies,

viable infrastructure and transparent environment.

4.2.4.

To promote investment in modern technology and research and development for cutting and polishing of Granite.

4.2.5.

To generate employment by developing human resource through skill development initiatives for working in Granite

sector.

4.3.

Strategic goals of Gujarat Granite Policy (GGP)

4.3.1.

To complete the exploration of Granite Bearing Area (GBA) in the State in 1:500 Scale along with physical and

petrographic analysis of samples of Granite from GBA.

4.3.2. Auction of leases identified in Category 1 and Category 2 Area. 5

4.3.3. To increase the production of Granite from the State to 14 lakh tonnes within 36 months from date of issuance of

policy document.

4.3.4. To increase the revenue of State from royalty to INR 30 Crore within 36 months from date of issuance of policy

document.

4.3.5. To become one of the major Granite processing state in terms of value of processed Granite production.

4.3.6. To increase the contribution of Granite export in value of total exports from Gujarat by 200%.

5 Category 1: Positive opinion has been received from Revenue Department on land use as Granite quarry Category 2: Opinion of Revenue Department of Government of Gujarat on land use is pending

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5. Focus areas

5.1.

Governance

5.1.1.

The government is committed for successful and time-bound implementation of this Policy. In order to ensure that all

key aspects of this Policy are successfully implemented, a High Level Committee for Minor Minerals in Gujarat (HLCMM) chaired by Commissioner of Geology and Mining, Post Auction Committee (PAC) and Working Group for Stone Sector (WGSS) will be constituted to review the progress in respect to exploration and auction of the stone.

5.1.2.

The mandates of HLCMM, WGSS and PAC are detailed in Annexure I of this policy document.

5.2.

Exploration and physical analysis

5.2.1.

Granite’s commercial viability depends upon the physical properties and aesthetic quality of the stone. Thus, it is

important to undertake detailed study of the Granite leases prior to the investment in mining and processing. To enhance the confidence of investors in Granite blocks, for the areas identified for auction of Mining Lease, exploration of the Granite bearing areas, as established in Preliminary Study (1:50000 scale) and Detailed Study (1:8000 scale), will be undertaken in 1:500 scale along with petrographic and physical analysis of the samples before putting up the identified areas in auction for Mining Lease. The physical tests will include compressive strength test, specific gravity test, porosity test and tests to establish frequency of fractures and joints.

5.2.2. The exploration will include established and emerging technologies such as non-intrusive and non-invasive

techniques in the process of exploration & evaluation.

5.2.3. All the available data in the form of geological reports, ground water reports, magnetic data, geo-chemical data, geo-

physical data, regional exploration data as well as data on current working and non-working concessions will be collected,

collated and analysed during the desktop study for broad delineation of potential areas.

5.2.4. Opinion of Revenue Department of Government of Gujarat on whether the land proposed for exploration is available

for mining or not will be taken before undertaking the exploration in the respective land. Office of Commissioner of Geology and Mining will coordinate with the Revenue Department for timely disposal of such request.

5.2.5. The exploration activities will be undertaken through outsourcing model. The technically qualified exploration

agency(s) will be selected for exploration through competitive bidding.

5.2.6. The petrographic analysis of Granite samples will be undertaken in house. Necessary infrastructure will be developed

for quality analysis of the samples.

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5.2.7. Physical tests and analysis for establishing compressive strength, porosity, patterns of joints and fractures etc. of

samples taken from Granite Bearing Areas will be undertaken through outsourcing or through strategic tie-up with government testing facilities/ institutions like National Institute of Rock Mechanics and Gujarat Engineering Research

Institute.

5.2.8. Online data integration and decimation system, with details about geological map of area, reserve, quality, land survey

details and other aspects, to facilitate the State Government in formulation of exploration and auction strategy. Online Geological Reports can be developed and provided to potential investors after development of such system.

5.3.

Selection of Granite mining leases for auction

5.3.1.

The Government will ensure that commercially viable Granite mining leases will be put up for auction. The

government will also consider the dumping space for Granite waste before deciding on the area of the leases to be auctioned. The commercial, technical and economic parameters related to Granite slabs will be assessed by Working Group for Stone Sector and HLCMM through discussion with Granite industry players before putting up a Granite block for auction.

5.4.

Post auction support

5.4.1.

The officer authorized in this behalf by the State Government shall within a period of 90 days from the date of receipt

of mining plan or modified mining plan, convey approval, modification or disapproval to the applicant. In case of disapproval, the officer shall also convey the reasons for disapproving the said mining plan or modified mining plan. In case

of modification, the lessee shall carry out the required modifications and resubmit the modified mining plan.

5.4.2. The Post Auction Committee (PAC) will help Successful Bidder in addressing issues related to clearances and

approvals.

5.5.

Value addition of raw Granite

5.5.1.

Given the geographical advantage of Gujarat and availability of raw material from neighbouring landlocked regions

such as Rajasthan, Madhya Pradesh as well as western Uttar Pradesh, the government will focus on value addition of raw Granite procured from 3 sources i.e. Granite produced in Gujarat, procured from neighbouring states and imported raw Granite. The focus will be on enhancing the value of Granite export from the state. HLCMM will do necessary due diligence on technology upgradation, economies of scale & large scale marketing, initial support & promotion for the development of Granite processing industry in the State.

5.6.

Granite Processing Cluster and Granite Mining Cluster

5.6.1.

In order to facilitate investment in production, processing and value addition of Granite, State Government will

develop dedicated Granite Processing Cluster (GPC) and Granite Mining Cluster (GMC) for Granite processing and value addition in North Gujarat. Government will develop more clusters at other locations in the State, subject to the requirement

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and need of the Granite sector of the State. The assistance to be provided to the clusters will be subject to the recommendations in the Comprehensive Granite Cluster Development Scheme (CGCDS).

5.6.2.

Comprehensive Granite Cluster Development Scheme (CGCDS) is annexed in Annexure 2.

5.7.

Increasing efficiency of institutions catalysing development

5.7.1.

Dedicated portal will be developed for Granite on Commissioner Geology and Mining website to give complete

information on the new initiatives and development in Granite sector in Gujarat. This portal will be used for quick responses to queries of potential investors in Granite.

5.7.2. To play a more pro-active role and to ensure that the needs of the industries are adequately addressed, a grievance

addressing session for the Granite sector industries will be organised with Industries Commissioner and Commissioner of

Geology and Mining at the helm. These sessions will be conducted on regular basis wherein industries can request for a timely intervention from the government.

5.8.

Support in procurement and development of new technology

5.8.1.

Gujarat with its strategic location has huge potential to emerge as a Granite processing centre. The government will

leverage this strategic advantage in major business summits like Vibrant Gujarat with the help of FIGSI to encourage the investors in major Granite countries like China and Italy to invest in Granite sector in Gujarat and bring in latest technology in the sector. Government will encourage the global major equipment manufacturer in Granite processing sector to set-up equipment manufacturing plant in Granite Processing Clusters (GPCs).

5.8.2. Granite sector will get special focus in events/ seminars/ exhibitions organised in mining sector in State. For

acquaintance of latest technology to Granite players, exhibitions and seminars will be organised by the state government from time to time.

5.9.

Facilitate centres of excellence and institutions for skill enhancement

5.9.1.

Government will insist National Skill Development Corporation to develop a course for skill development in cutting

and polishing of dimensional stone.

5.9.2. In existing ITIs, 6- month courses will be started for cutting and polishing of Granite. A short course structured by

CGM department with the help of Federation of Indian Granite and Stone Industries will be prompted through ITIs and other training institutions.

5.9.3. Government will insist the Federation of Indian Granite and Stone Industries and local associations in Granite sector

to develop vocational training cum skill development centre in GPC and GMC.

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5.9.4. Stone Artisan Park Training Institute is a project of Government of Gujarat to harness the potential of State’s stone

industries. The government will develop a curriculum for training in Granite stone cutting and polishing, Stone Enterprise

Development etc. in SAPTI.

5.10. Support in market development

5.10.1. The domestic Granite producer may get the preferential treatment for supply of Granite for infrastructure development in Gujarat.

5.10.2. The government will form strategic partnership with FIGSI to provide a platform for confluence of sellers and buyers

in Granite sector by organising exhibitions and conclave dedicated to Granite in the State.

5.10.3. One of the expansive marketing practice around the globe is participation in international and domestic trade fairs

to showcase one’s products. Government will include STONA, Stone Mart and other exhibitions identified by Working

Group for Stone Sector in the list of approved exhibitions for the purpose of assistance under scheme – “Assistance to MSME

manufacturing sector participation in exhibition through Industries Association/ Federations and Chambers”, “Scheme for

market development assistance for participation in International Trade Fair outside India” and “Assistance to organiser for

organizing industrial exhibitions in Gujarat”.

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Annexures

Annexure I

The mandates of HLCMM, Working Group for Stone Sector and Post Auction Committee (PAC)

1. Composition of HLCMM is:

a) Commissioner of Geology and Mining (Chairman)

b) Additional Director, Technical

c) Additional Director, Development

d) One person from Finance Department

e) One independent person from industry

2. The mandate of HLCMM mentioned in provision 5.1 is to:

a) Device an Annual Action Plan (AAP) with targets to achieve the objectives outlined in Granite Policy 2017, Gujarat.

b) Review and monitor the various activities undertaken as per AAP prepared by the committee.

c) Finalize the leases that are to be auctioned and mandatory actions to be taken for the auctions of the block.

d) Scrutinize the case of new technologies put up by Working Group for Stone Sector (WGSS) and devise an action plan for development and procurement of the same.

e) Sanction budget for activities undertaken under the scope of this Policy Document.

3. The mandate of the Working Group for Stone Sector(WGSS) is to:

a) Finalise the modalities for undertaking granite exploration in the State.

b) Review and monitor the exploration activities of granite in the State.

c) Finalise the status of exploration, work out the area of the blocks proposed for auction and put up the case for auction of blocks to the HLCMM.

d) Identify new technologies for exploration and processing of granite and put up the case for development or procurement of these technologies to the HLCMM.

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4. The mandate of Post Auction Committee is to:

a) To assist the successful bidders in getting the necessary clearances and approvals.

b) To monitor the status of operational and non- operational Granite Leases in the State and take necessary actions as may be required.

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Annexure II

Comprehensive Granite Cluster Development Scheme (CGCDS)

1. Objective

1.1. To attract investments in Granite mining, processing and value addition in the State.

2. Scope and coverage

2.1. Assistance under the scheme will be admissible for creation of basic infrastructure and Common Facility Centre

(CFC). The scheme also covers the role of government for establishing tie-ups with financial institution, skill

development institutions, technology majors etc. for the development of the clusters.

3. Granite Processing Clusters (GPCs) and Granite Mining Clusters (GMCs)

3.1. The State Government will develop Basic Facilities in Granite Processing Cluster (GPC) and Granite Mining

Cluster (GMC) under the scheme “Assistance to GIDC for Development of Industrial Estate for MSEs”.

3.2. Some of the indicative Basic Facilities are

Government Support Office

Electricity Sub-Station

Boundary Wall

Internal Road

Street Lighting

Storm Water Drains

4. Common facilities

4.1. Common facilities under CGCDS will consist of creation of tangible “assets” as Common FacilityCenters (CFCs).

Some of the indicative activities under the CFCs are:

4.1.1. For GPCs

Warehouse

Common testing and certification facility

Training Centre

R&D Centre

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Draft  Effluent Treatment Plant  Common logistic facility  Granite Park  Centre for decimation

Effluent Treatment Plant

Common logistic facility

Granite Park

Centre for decimation of information about modernisation of processing units

4.1.2. For GMCs

Common lease for dumping waste Granite

Common logistic facility

4.2. The above list of common facilities is illustrative and each cluster could have its own specific requirements based

on the nature of units being set-up and the products proposed to be manufactured. Industries Commissioner and High

Level Committee for Granite Sector in Gujarat (HLCMM) shall approve the project components and funding thereof.

4.3. The CFC should be operationalized within two years from the date of final approval, unless extended with the

approval of Industries Commissioner.

4.4. Charges for services of CFC shall be on differential rate basis, lower fee for small units and higher fee for medium

and large units. The grading of small and large unit will be established by Office of Industries Commissioner.

5. GPC and GMC Project Preparation, Appraisal and Release of Funds

5.1. A Detailed Project Report (DPR), including location of GPC and GMC, infrastructure for CFCs, project cost along

with data, surveys, projections and feasibility on growth potential of the GPC, will be prepared by HLCMM with

the help of reputed consultancy firm.

5.2. The DPR will include CFCs and infrastructure for the specified GPC and GMC. The State Government will

actively involve support institutions like financial institutions, technology providers, R&D institutions, etc.

wherever necessary.

6. GPC and GMC financial assistance

6.1. Infrastructure facilities and financial assistances to GMC and GPC shall be subject to the assistances identified

under the scheme “Assistance to GIDC for Development of Industrial Estate for MSEs”.

6.2. The State Government will propose the Central Government to fund the Diagnostic Study, Infrastructure

Development and Common Facility Centers (CFCs) in the GPC and GMC through Micro & Small Enterprise –

Cluster Development Program (MSE-CDP).

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7. Other support by State Government to GPCs and GMCs

7.1. The State Government will encourage investment from major technology provide in Granite processing and value

addition industry on GPCs.

7.2. The State Government will insist Gujarat Skill Development Council and National Skill Development Corporation

to develop a course for skill development in cutting, polishing and fabrication of dimensional stone. It will put

forward a proposal for the development of skill development centers in GPCs by these institutions.

7.3. Any other support as may be identified by HLCMM