Under new policy, state caps sand price at ₹600 per brass for a year

Maharashtra cabinet clears policy for govt to mine and sell sand from its depots, aiming to reduce sand prices and lower construction costs.

The Maharashtra cabinet on Wednesday cleared a policy under which the government would have the sole right to get sand mined and sell it off from its depots. With this, the prices of sand are expected to drastically come down, which in turn would lead to a drop in the construction cost for real estate projects. The decision will also curb the illegal extraction of sand and its sale on black market.

Thane, India - January 21, 2023: Two illegal mining barges and two suction pumps seized and destroyed as part of a special drive against sand mafia and illegal dredging worth ₹50 lakh by Thane Tehsil and Sub-Divisional Office, at Retibunder, on Ghodbunder Road, in Thane, India, on Saturday, January 21, 2023. (Praful Gangurde/HT Photo) (HT PHOTO)

“There will be depots in all districts for storage and sale of sand. A technical committee at tehsil level would monitor the riverbed for excavation while a committee headed by collector would oversee the tendering and sale,” a statement issued by the government said.

In the first year, a brass (around 4,615 kg) of sand would cost ₹600, the statement said. The government has also waived royalty for this period. The cost, however, does not include transportation and other charges, which means a buyer is likely to pay ₹1,000 a brass. A year later, it will be sold for ₹1,500 (excluding other expenses) per brass, an official said.

Nitin Kareer, additional chief secretary, revenue department, said, “The price of sand is market-driven. It can be anything from ₹2,000 to ₹5,000 or more per brass. The decision will help significantly reduce the sand prices and lower the cost of raw materials for the construction industry. The revenue minister (Radhakrishna Vikhe Patil) has requested the developers to pass on the benefits to consumers.”

It means the sand prices will also be decided by the government which will be a blow to those involved in black marketing, a senior revenue officer pointed out.

The move is also expected to bolster revenue for the state exchequer. At present, majority of the sand dredging in the state is done illegally by sand mafia.