Punjab plans to sell sand online, works out modalities

There’s a perception in the ruling party that if sand is made free for all, it government would be able to quell the perception that the incumbent regime was also giving in to sand mafia. It would also make irrelevant former minister Navjot Singh Sidhu’s suggestion of setting up a corporation for selling sand.

“This is a perfect way of making the narrative around Sidhu’s suggestions irrelevant and snatch a handle from the Aam Aadmi Party (AAP), which is threatening to be a force to reckon with in the next Assembly election,” said a government functionary.

Sidhu, the then local bodies minister, had suggested that a government corporation could help sell sand at Rs 1,000 per tractor-trolley. Chief Minister Capt Amarinder Singh, however, had then asked the department to continue with the bidding policy for sand quarries.

Sources said that in the internal party meetings, most of the MLAs were of the opinion that sand should be made free as they had to face a lot of heat in their constituencies on account of illegal sand mining and high prices.

Sources told the Indian Express that the government considered two options — either set up a corporation and then sell sand through the entity, or set up a web portal and sell the building essential, with department of mines and geology handling the operations.

While the government, as of now has decided to sell sand online, it is still in the process of deciding on whether the labour is to be engaged by the government or by the consumer. “The consumer will be able to order it online from the mining area closest to his/her residence. The consumer would be free to engage the transport on his or her own,” a senior official said.

Sources said the modalities to decontrol sand mining have mostly been worked out. The department of mines would demarcate the area, which could be mined and the department itself would get environmental clearance from the Ministry of Environment, Government of India. “We will also do geo-tagging of the mines and we would be able to monitor the mines online so that the rules are not flouted,” said an official in know of the development.

The official added that it was also being worked out whether the government should put a levy on sand. “During last 10 years of SAD-BJP regime, the state made only Rs 35 crore from sand every year. In first two years of our regime, we have been able to make Rs 89 crore. The sand has not done anything to fill up the coffers of the state while it is estimated that it is a business worth Rs 5,000 crore annually. We feel that if we enforce a levy of Rs 100 per trolley that would cost about Rs 600-700, we can still earn revenue equal to what we had been making till now. Then why not make it free? At least it will not become an issue in the next election.”

For buying sand from private owners of land, the government would put a cap on the price of the commodity.

The government had earlier planned to make the announcement during the Vidhan Sabha session but it was delayed as going with the decontrol would involve cancelling the contracts worth Rs 300 crore it had awarded last year.

The government is trying to find a middle path so that they do not have to go to court. The government may consider to not only return the investment made by contractors but also the deemed profit that they could earn. “A legal opinion is being taken on this,” said a functionary.