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To counter mining mafia, Punjab to cap sand price at ₹9/cubic ft
At present, sand selling at ₹30/cubic feet; Channi govt to implement mining policy cleared by Capt Amarinder cabinet but not implemented since 2018
Swinging into action to check the soaring prices of sand, the Punjab government will cap sand and gravel prices at ₹9 per cubic feet, including loading charges at mining sites. This will be done by implementing a provision of the existing mining policy passed by the Captain Amarinder Singh cabinet in 2018 but never implemented.
The decision will help the government check the mining mafia. A proposal in this regard has been finalised and will be announced after the next cabinet meeting, an official source said, requesting anonymity. This is one of 18 points on the agenda set by the Congress high command.
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“It’s not a new proposal. The mining policy of 2018 has a provision to cap the mining of sand and gravel at ₹9 per cubic feet. However, it was not implemented since the mining auction of 2019. Everyone knows who’s the culprit as the mining mafia was operating like in the previous regime. Except the increase in the government revenue from ₹30 crore to ₹270 crore, nothing changed. There was no relief for consumers,” said the official, who made the proposal.
What the 2018 mining policy says
The mining policy approved in 2018 by the cabinet states that both sand and gravel shall not be sold by the concessionaire at the mining site at more than ₹9 per cubic feet and this includes the cost of loading the vehicle. The maximum rates linked to the distance that can be charged per cubic feet for transportation of sand and gravel will be notified. The maximum rate of sand and gravel chargeable from the customer will not exceed the sum of the above stated two rates.
The concessionaire will despatch sand and gravel through only those transporters who agree to transport it at the notified or less rates. Any violation will result in the cancellation of the agreement and forfeiture of the security amount, the policy says.
Price capping provision
However, government officials in league with mining contractors never implemented these provisions. After assuming charge, chief minister Charanjit Singh Channi and his deputy Sukhjinder Singh Randhawa asked for a survey of the prices of sand; and how to provide the sand at cheaper rates.
“When the policy was studied, we found the price capping provision. The survey found the prices of sand is anywhere between ₹25 to ₹35 per cubic feet for consumers, which defeats the purpose of the policy. If prices are capped, there will be no mafia, as it mints money by increasing prices,” said an official dealing with issue.
He said that to provide relief to consumers, Channi, during the first cabinet meet, decided to allow landowners to do mining in their respective areas. “A draft has been prepared and it will be sent to the chief minister to put it before the cabinet. It has decided to strictly cap the prices according to the policy to provide relief to the common man,” said the official.
Principal secretary, mining, Sarvajit Singh didn’t respond to phone calls to answer why the price capping was not implemented since 2018.
