Kerala government plans price regulatory mechanism for quarry products

Minister warns quarry owners against blocking transportation of materials from other states
For representational purposes
For representational purposes

THIRUVANANTHAPURAM:  The state government is planning a regulatory mechanism to fix the maximum retail prices of construction materials, Industries Minister P Rajeeve has said. “Some states have such a mechanism. We will explore the possibility of setting up a regulatory mechanism which would fix the maximum selling price of materials. The type of materials to be covered by the system will be examined,” he told reporters in Thiruvananthapuram Thursday.

The minister’s presser was in the wake of the indefinite strike by quarry owners. He warned quarry owners against blocking the transportation of construction materials from other states. “There were some incidents in which transportation was blocked at border points. The police will take strict action against the offenders,” he said. The government will pursue legal steps to review the permit and lease agreement of quarries that strike for long. 

The minister said the strike was a challenge to the people. The hike in royalty and other fees from quarries was nominal but the quarry owners made a disproportionate increase in selling prices, he said. 

“For instance, the additional liability on MSand, including the royalty hike, new DL fees and dealers’ fees hike, is only Rs 2.83 per foot. But sellers increased the price by Rs 5 per foot,” he said. The minister said quarry owners had made huge increases in prices even before the rate revision by the government. The cubic feet price of road metal which was Rs 35 in 2015 rose to Rs 60 in 2023 and the government had not increased royalty in between,” he said. 

The minister said the royalty increase was a periodical revision. The Rs 24 fixed in 2015 has been revised to Rs 48. “This is a periodical revision. The Central law stipulates price hike every three years,” he said.

The minister said the real reason behind the strike could be the increase in penalties. “It should not be a matter of concern for people running quarries as per the law. The security deposit and penalty were upped to prevent violations. Inspection by officials has been made fair and transparent with the help of technology,” he said.

“There is little scope for harassment by officers. The government has strengthened the Mining and Geology Department by giving vehicles to all offices. District-level inspection teams have been formed. Quarry licences are issued through an online process and site inspection is conducted with the help of drones,” he added.

Price hike without govt’s permission

  • Quarry owners had made huge increases in prices even before the rate revision by the government
  • The cubic feet price of road metal which was D35 in 2015 rose to D60 in 2023 without the government increasing the royalty in between
  • The minister said royalty increase was a periodical revision. The Central law stipulates price hike every three years

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