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Ludhiana: Rising coal prices may leave brick kilns shut, says association
Members of the Punjab Brick Kiln Owners Association have criticised the increase in GST on coal purchases from 5% to 18% and blamed that imported coal coming from Gujarat to be of low grade and more expensive . Leaving Kiln owners no option but to shut the work
Alarmed over steep rise in coal prices and operational costs, members of the Punjab Brick Kiln Owners Association have warned that a large number of brick kilns in the state could shut down from April 1 if the government fails to intervene soon.
The concern was raised during a meeting of the association where members discussed the mounting financial pressure on the industry. Representatives said the business was being severely affected due to the continuous increase in coal prices and the alleged dominance of supply by a coal mafia.
Association members also criticised the increase in GST on coal purchases from 5% to 18%. According to the association, imported coal arriving through Kandla Port in Gujarat has not only become more expensive but its quality has also deteriorated. Members alleged that adulteration has reduced the heat value of coal, resulting in higher production costs and lower profits for brick manufacturers.
Coal that was earlier available at around ₹10,000 per tonne is now selling for ₹16,000 to ₹17,000 per tonne, they said. By the time the coal reaches Punjab after transportation and GST, the price rises to nearly ₹22,000 to ₹23,000 per tonne, they said.
“Punjab once had nearly 2,700 brick kilns, but the number has now fallen to about 1,800. With coal prices continuing to rise, another 25% of kilns are on the verge of closure,” members said.
Association president Ramesh Mohi and general secretary Lakhbir Singh Sandhu said the future of the brick kiln industry could become uncertain if urgent measures are not taken to control coal prices and regulate supply.
