The construction sector is staring at a bleak future if the State Government’s decision to fix the rate of a unit of sand at ₹4,500 is to be construed as part of its proposed sand policy, former Visakhapatnam North MLA and BJP leader Vishnu Kumar Raju said.
Speaking to The Hindu , Mr. Raju said that sand was available for free under the earlier policy but with the latest decision, a truckload of sand (almost six units) would now cost ₹27,000. Builders and contractors would have to bear an additional cost of ₹3,000 to ₹5,000 for transport depending on the distance, all of which would push up construction costs. “The government will definitely earn more money, but it will kill the construction sector,” Mr. Raju said. Striking a contrary note, former president of CREDAI P. Koteswara Rao said that sand was never available for free to the end users.
“The free policy was then limited from the reaches, where it was collected by tractors, to the distribution point. The builders and the end users had to pay for the sand at the distribution point, which even then amounted close to ₹27,000 per lorry, plus transport charges. So basically, the decision taken by the State government does not affect the end users. The only difference is that back then, we were paying money to the sand mafia. Now, we will be paying the money directly to the government,” Mr. Koteswara Rao said. “If the government really wants to implement a viable sand policy and help the construction sector, the amount should be reduced,” he added.
