Sand prices are expected to go up in the coming days as private people have bagged sand contracts by bidding a very high price in the e-auction process.
In some extraction points, the cost of sand offered by contractors is as high as ₹10,757 per cubic metre, implying that a truckload would cost more than ₹70,000 for customers.
The Department of Mines and Geology had fixed the base price at around ₹70 per cubic metre. Those who quoted almost 100 times more bagged the contract. Tough competition among bidders for a few sand extraction points is said to be the reason for this trend.
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The sand block at Kittageri in Sakleshpur has been bagged by the contractor who quoted ₹10,757 per cubic metre. He has to pay that amount as royalty to the government. When the royalty is so high, the retail price would be above ₹70,000 per truckload.
Similarly, the extraction point at Kittagalale has gone for ₹5,975 per cubic metre, where a truckload of sand would cost nearly ₹40,000. At Vaduru, the bid price was ₹4,800 per cubic metre and the truckload would cost nearly ₹30,000.
Earlier, the Public Works Department used to handle the retail sales and the price then fixed per truckload was ₹6,600, excluding transport charges. Given the latest prices, the public would have to pay more to purchase sand. When this was brought to the notice of A. Manju, Minister for Sericulture and Animal Husbandry, in an interaction with journalists in Hassan on Tuesday, he said he was aware of the recent developments. “The government brought in some changes in the sand policy to provide sand for the public at an affordable price. I am aware of the recent auction and I will bring this to the notice of the Chief Minister. I am sure the government will resolve this issue,” he said.
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