In Punjab, sand is the new gold!

Ruchika M Khanna

Tribune News Service

Machchiwara/Ludhiana, May 14

The Akali-BJP government’s claims of having substantially brought down prices of sand in Punjab seem to have fallen flat. The “golden” sand is still being sold like gold, literally. At most places across Punjab, it retails at Rs 1,800-Rs 2,300 per 100 cubic feet.

The Tribune investigation reveals that the government policy of taking over the mining of minor minerals and retailing excavated sand has failed and there has been almost no reduction in sand prices. Though Ludhiana mining officer Mahesh Sharma insists prices of sand have fallen to Rs 1,500-Rs 1,600 per 100 cubic feet, The Tribune picks holes in the claim.

The mining policy formulated in October last year assured availability of sand at Rs 800 per 100 cu ft. At the 11 quarries that were allotted to the government-owned Punjab State Industry Export Corporation (PSIEC) in November 2014 (for the little time that the mining mafia allowed these quarries to run), sand was available at Rs 1,000 - Rs 800 as sand price and Rs 200 as loading charges illegally levied.

“The mafia, which can be traced to the top in the political hierarchy, will never let the sand prices fall. Since the entire mining operation is run like a cartel, a common man is not allowed to excavate sand, even from his private land. Most of the contractors are digging sand in much larger areas than what was allotted to them during auction to maximise profit,” said MLA Simarjit Singh Bains, who has launched an agitation against illegal sand mining.

As quarries run by private contractors outnumbered those operated by the PSIEC, the rate never really fell. The price correction, if any, is restricted to pockets near the government-run quarries.

With names of top leaders of the ruling alliance linked with the “sand mafia”, the government tried course correction by making it available at rock-bottom prices. Under the new policy, sand quarries allotted to the PSIEC became operational between November and December but just six months down the line, only two of the 11 quarries are operational. The remaining nine, including three at Moga, are either closed because contractors hired by the PSIEC have run away or because quantity allowed to be mined in these quarries for a year has exhausted.

At some places, politicians owing allegiance to the ruling party, as in case of a mine in Hoshiarpur-Degana Khurd, have created enough hurdles to ensure that the mine remains inoperative. Only two of these minor mineral quarries — at Pawat in Ludhiana and Jhugian Maha Singh in Jalandhar — are operational now and supplying sand. Two quarries at Kum Kalan and Miana in Ludhiana were closed just two days ago after their mining quota exhausted.

With the rising demand and supply being left mostly to the private mining contractors (operating over 300 quarries), prices are determined by the majority players. Officials in the PSIEC, requesting anonymity, insist that the corporation would soon get more quarries operational and the reverse bidding policy, adopted by the government to auction 40 quarries in 2011 that got environmental clearance and became operational this week, will help bring down prices.

A day after the Degana Khurd quarry was auctioned, kin of a ruling party Chief Parliamentary Secretary, with vested interest in mining, had allegedly tried to stall the sale of cheap sand by creating a rift with the loading contractor at the quarry. It was only after top government functionaries intervened that the mine started operating. Two months ago, Punjab Mandi Board, which was asked to make bookings for sand for the common man and arrange transportation, backed off from the work saying they were ill-equipped. Thus, transportation of sand became the consumers’ responsibility.