The Telanagana State is likely to have two gold refineries to be set up in Ranga Reddy district.

A three-member Group of Ministers, that held a meeting recently to examine the proposals from two major gold refineries – one for a 110 tonne-capacity refinery and another for 30 tonne-capacity one –, asked the Commercial Taxes Department to evaluate the financial implications and tax benefit to be accrued to the State and submit a detailed report on the same.

The two refineries with a working capital of Rs. 900 crore and Rs. 550 crore projects that the turnover would run into thousands of crores based on the tonnage of gold to be refined. The government wants the proposals to be studied thoroughly to evaluate the economic benefit to the State in taking them forward.

Airport connectivity

The companies have zeroed in on Hyderabad outskirts to set up their refineries after the Industry Department promoted the State abroad to attract investments. Apart from being a high gold-consuming State, excellent international airport connectivity, transport facilities, availability of land and labour and TSiPASS for faster clearance of proposals weighed in favour of Telangana, sources said.

The two units would come up on five acres at Kongarkalan in Ranga Reddy district if given green signal by the government. Under the GST regime, it makes sense to set up units where the gold consumption is more. The setting up of the refinery would be governed by the Bureau of Indian Standards, the sources added.

Once the Telangana State has gold refinery units, the State would have its own competitive gold rate like other metros as transport cost and other incidentals would be eliminated.

The two units will come up on five acres of land at Kongarkalan in Ranga Reddy district if given green signal by the government.

Sources

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