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This is an archive article published on December 27, 2022

How Punjab government’s sale of sand may face challenges 

After opening the government's first sales centre in Mohali last week, minister Harjot Singh Bains said more such centres would be opened in the state. Experts say the government should formulate policy rather than becoming a seller as it does not have sufficient resources.


The state government has launched an app that gives complete details about public mining sites and also facilitates online payments.  (Representational Image/ File)  The state government has launched an app that gives complete details about public mining sites and also facilitates online payments. (Representational Image/ File)
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How Punjab government’s sale of sand may face challenges 
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Amid reports of skyrocketing prices of sand and gravel, the Aam Aadmi Party (AAP) government in Punjab last week opened its first sales centre in Mohali  where the construction essential will be available to all at “affordable rates”, the move coming years after a similar bid by the previous SAD-BJP dispensation to run a sand vend had failed to kick off.

The 37 quarries started by the previous government could run only for fewer than six months. The setting up of government-run sand quarries is replete with challenges. A primer on the issue.

What has the Punjab government done to ease the sand situation?

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Sand is available at Rs 40 to 55 per cubic foot in different parts of the state as most of the quarries are not operational for want of environmental clearance. Facing criticism, the state government opened its first sales centre in New Chandigarh on December 19. Sand is being made available for Rs 28 per cubic foot there. Mines and Geology Minister Harjot Singh Bains stated that soon such sale centres would be set up in all districts of the state.

What had the SAD-BJP government done?

The SAD-BJP government, led by Parkash Singh Badal, had amended the Punjab Minor Mineral Rules, 2013, thereby allowing the state industries department to allot 37 quarries to the Punjab State Industrial Export Corporation (PSIEC) at a fixed rate of royalty to supply sand and gravel to consumers at cheaper rates. The PSIEC was asked to ensure the supply of sand and gravel at the pithead level and the Punjab Mandi Board was asked to supply the minerals to the consumers at their doorsteps or market committee yards by charging transport rates fixed by the transport department.

Did the system work? 

The government had asked the PSIEC to set up shops at 37 places across the state in November 2014. However, it could set up these “fair price shops” only in 11 districts. After six months, however, all these 11 shops ran out of commodities and had to be shut down. Also, the government found it difficult to spare its employees to run the sand shops at that time as sand mining is itself a huge operation requiring manpower and machinery and expertise in the subject.

The mines often run out of sand after it is excavated. Also, originally, it was decided that the sand would be sold from mandi yards but then an objection was raised that mandi yards were notified and any sale-purchase in mandi would invite tax. The Mandi Board had expressed an inability to engage in the operations.

What do the experts say?

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A senior functionary said the government’s job was to facilitate and not engage in the sale. “The government should formulate a policy rather than becoming a seller. Where is the wherewithal? It would require marketing yards, logistic support, transport, loading and unloading. Also, the contractors may go to court challenging the government,“ the functionary said.

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