Karnataka promises cheaper sand under new policy

Under the new policy, a truck load of sand will cost around Rs 10,000 to Rs 12,000, down from the existing Rs 30,000 to Rs 40,000, a minister said

The Karnataka Cabinet on Monday approved a new policy that promises to regulate the soaring price of sand, whose shortage has impacted the construction sector.

Under the new policy, a truck load of sand will cost around Rs 10,000 to Rs 12,000, down from the existing Rs 30,000 to Rs 40,000, Law Minister JC Madhuswamy said, briefing reporters after the Cabinet meeting.

Lack of regulation affected the availability of sand for development works, besides the realty sector. The new policy was in the works for more than a year.

Sand extracted at the level of a gram panchayat will be sold at Rs 300 per metric tonne, while the price of river sand is fixed at Rs 700 to be supplied to towns. Inter-district supply of sand will also be done at Rs 700 per tonne. Royalty for the state exchequer will be Rs 50-60 per tonne, Madhuswamy said.

According to the minister, about 10-15 tonnes of sand can be transported in a lorry. "With the new prices, a lorry load of sand will cost around Rs 10,000 and a maximum of Rs 12,000," he said.

Under the policy, a provision has been introduced to allow gram panchayats to supply sand at a discounted rate for rural housing projects and government-sponsored schemes. Sand for poor people will also be given at a subsidized rate, he said.

"Sand for such projects can be extracted only with permission from local authorities. A district-level body is formed to permit the extraction of sand based on survey reports. Enforcement and monitoring responsibilities are fixed to these district-level bodies as per the rules notified," Madhuswamy said, adding that the rules will also clarify where to extract sand.

Of the royalty collected by the government, 25 per cent will be for gram panchayats where the sand is extracted from and 25 per cent will be for panchayats through which the sand is transported.

Environmental impact assessment was done for new policy, Madhuswamy said. "The government will identify the sand reserves and the amount that can be mined, the depth to which sand can be mined in lakes and other factors. Only in areas approved by the district committee will sand mining be allowed and not anywhere else," he said.

Traditional extraction of sand practiced in Dakshina Kannada district by diving into the river bed in non-Coastal Regulation Zone (CRZ) areas will be allowed. "But, machinery cannot be used for extraction in such cases as it is against the law," he said.

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