'High' coal prices, Bathinda brick-kilns shut operations

Owners say profit margins dwindling, seek relief from AAP govt | Of 160 units, 60 closed down in 2 years

'High' coal prices, Bathinda brick-kilns shut operations

The Brick Kiln Manufacturers' Association, Bathinda, has decided to suspend work for an indefinite period, for it says that “high” coal prices and “increased” rate of GST have reduced their profit margins — a decision that will affect construction and ramp up prices of bricks.

Tribune News Service

Bathinda, June 26

The Brick Kiln Manufacturers’ Association, Bathinda, has decided to suspend work for an indefinite period, for it says that “high” coal prices and “increased” rate of GST have reduced their profit margins — a decision that will affect construction and ramp up prices of bricks.

Extended break

Though brick-kilns remain closed around monsoon every year, we have decided to suspend operations for an indefinite period till the government provides us some relief. Paramjit Singh Sandhu, President, Brick kiln manufacturers’ association, Bathinda

Paramjit Singh Sandhu, president of the association, said: “The constant increase in coal prices has been affecting our work and margins adversely. The increased rates of GST have taken its toll on our income. Though brick-kilns remain closed around monsoon every year, we have decided to suspend operations for an indefinite period till the government provides us any relief.”

Price rise

Rs 10,000 last year

Rs 25,000 this time

per quintal

GST rate 6% to 12%

Until last year, coal prices were Rs 10,000 per quintal. Now, one quintal of coal is available for Rs 25,000, while the GST rate has increased from 6 per cent to 12 per cent.

“Brick-kiln owners bear high prices of diesel and labour cost as well,” said Sandhu.

He added, “There were 160 brick-kilns in Bathinda not long ago. Around 60 brick kilns had to shut operations in the last two years as the owners could not afford high input cost and tax rate. If the state government is concerned about brick-kilns, it must provide coal at cheaper rates and lower the GST rate.”

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