CHENNAI: The Centre will ask the Tamil Nadu Government to "revisit" its policies on granite quarry contracts, said G.K. Pillai, Special Secretary, Ministry of Commerce and Industry.

Mr. Pillai was speaking at an open house, organised by the Export Promotion Council for Export Oriented Units and Special Economic Zones (EPCES), here on Saturday. According to granite exporters in the State, provisions of the Central Excise Notifications, such as No.37/2000 and Customs Notification 58/2000, allow 100 per cent export-oriented units to transfer mining equipment to leased or own quarry locations for quarrying rough granite blocks. Tamil Nadu Minerals Ltd. (TAMIN) holds the lease for most of the granite quarries in the State. After bidding for tenders, the export-oriented units enter into an agreement, known as "contract agreement for granite quarries for raising-cum-sale." As per the agreement, the units shift their equipment (capital goods) to the quarry location for extraction of granite blocks. The Excise department does not recognise these contracts as lease or sub-lease, since these provisions are applicable only if the units "own or lease the quarries." Mr. Pillai said the Centre could not alter its policies going by the issues in a single State.

A representative of the granite industry said Rs.500 crore was invested in Tamil Nadu, the only State that does not follow the Granite Conservation and Development Rules, 1999.

Sharad Jaipuria, Chairman, EPCES, said there were 519 EOU/SEZ units in Tamil Nadu, out of which 438 have enrolled with the council.

He appealed to the other units to become members and take up the issues related to EOUs and SEZs.

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