A good scheme launched by the State government, with the noble intention of providing sand at a reasonable price to the consumers, is being defeated due to loopholes in its implementation, according to the Confederation of Real Estate Developers’ Association of India (CREDAI), Visakhapatnam.
The new online booking of sand was introduced by Chief Minister Y.S. Jagan Mohan Reddy to eliminate sand mafia and to ensure uninterrupted supply to builders and others.
But, the booking process was cumbersome and lengthy and problems at the field-level remain unsolved, CREDAI-Visakhapatnam chairman P. Koteswara Rao told the media here on Monday.
Though sand was available at the depots, the cumbersome process and procedural wrangles was resulting in only about 5% of the applicants for sand, being allotted the stock. The undue delays was forcing builders and developers to buy sand in the black market at ₹1,200 to ₹1,300 a tonne as against the price fixed by the government at ₹375, he said.
Builders require sand in bulk quantities but the online portal was not accepting bulk orders from the builders, even though they were placing their orders with approved building application. Further, the sale through portal was being opened only for a very limited period causing hardship to builders
Another problem for builders was that the allotment was being made at different depots in different districts, which was further resulting in increase in the sand cost, due to transportation cost.
The lack of availability of sand has become a permanent problem for builders, hampering the construction activity and rendering hundreds of workers jobless.
Mr. Koteswara Rao also appealed to the State government not to revise the market value of land this year in view of the severe financial crises across the industry. The adverse impact on the realty sector would have a cascading effect on other sectors connected with the building industry.
The decline in registrations and land transactions was already evident. A hike in land value and registration charges would distract potential buyers of plots and flats.
‘Reduce stamp duty’
He recalled that when recession had gripped the economy in 2008, the then Chief Minister had reduced the registration charges by 2% and to give a fillip to the building industry. The present circumstances were even worse, he said and appealed to the Chief Minister to reduce the stamp duty to around 2% to attract potential buyers and thereby promote building activity.
He also sought reduction in cement price to those prevailing before the lockdown.
CREDAI, Visakhapatnam vice-president E. Ashok Kumar and treasurer Ch. Govinda Raju also spoke.
