Andhra Pradesh

Sand shortage hits realtors hard

Of the estimated 3.52 lakh cubic metre of sand available in Prakasam district, 1.77 lakh cubic metres have been mined so far, generating a revenue of Rs. 10.64 crore.- Photo: Kommuri Srinivas  

The sand mining policy aiming at making sand available at affordable prices while keeping the mafia at bay appears to have failed in brining in the intended result as realtors allege that shortage of the raw material has delivered a blow to the construction sector. Despite all the 15 sand reaches in Prakasam district being put into operation, shortage of sand continues to worry the builders, who are already grappling with the slump in demand for commercial and residential property.

“We are failing to meet the schedule for completing the projects as sand price has shot up. We are even ready to pay double the amount, but sand is not readily available,” laments Confederation of Real Estate Developers' Associations of India (CREDAI) functionaries.

Before the policy was implemented, sand was available at Rs. 300 per three cubic metres. But, now we are paying Rs. 600 for the same. Still, we can’t deliver buildings to customers in time,” says CREDAI Ongole unit president I. Veerababu.

Further, the rise in transportation cost is upsetting the budget of the realtors. “We are forced to shell out Rs. 2,300 for transporting a tractor load of sand to project sites, which we can hardly afford,” Alla Venkateswara Rao of the Sai Krishna Constructions points out.

Reiterating the same, CREDAI Ongole unit general secretary G. Rajendran wants the government to reduce the sand price to give a fillip to the construction activities at a time when the industry is struggling to cope with the increase in cost of raw materials and slump in demand for buildings.

As against the estimated 3.52 lakh cubic metre of sand available in the district, 1.77 lakh cubic metres has been mined so far, generating a revenue of Rs. 10.64 crore, according to a report compiled by the Society for Elimination of Rural Poverty (SERP).



We are failing to meet the schedule for completing the projects as sand price has shot up. We are even ready to pay double the amount, but sand is not readily available

- CREDAI functionaries




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Printable version | Sep 24, 2021 12:52:55 PM | https://www.thehindu.com/news/national/andhra-pradesh/sand-shortage-hits-realtors-hard/article7509903.ece

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