VIJAYAWADA: The State government, which is looking at revenue augmentation to ease its debt burden, is likely to come up with a new sand policy. With the existing ‘free’ sand policy introduced by the previous TDP government, resulting in State losing a revenue of Rs 500- Rs 600 crore, benefiting neither consumers nor the exchequer, the State government is mulling a fresh policy that could create a win-win situation for both the parties.
Sources in the government said that implementation of a better sand policy was one of the points of discussion during the review meeting held by Chief Minister YS Jagan Mohan Reddy with Revenue and Finance departments. “There was no specific discussion on sand policy, but it was suggested that sand was also a source for revenue generation. The officials were asked to come up with novel ideas for revenue augmentation,” a source said.
The ‘free’ sand policy was introduced in early 2016 by the TDP government, in a bid to bring down the burden on consumers by withdrawing cess. Only transportation charges are being collected from consumers, as per the policy.
However, the previous TDP government had come under scanner as sand was sold at exorbitant prices and also for allegedly failing to control illegal mining. “The term free sand itself is misleading. As per the policy, only the cess that was being levied was removed, resulting in a loss of Rs 500- Rs 600 crore to the government. But, the transportation charges have to be paid by the consumer,” a top-ranking official observed.
State may follow TS sand policy
“However, the regulation is poor and the prices have skyrocketed from Rs 2,000 per truckload to over Rs 10,000 as the transporters formed a syndicate and dictated the price. As a result, neither the consumers nor the exchequer have benefitd. So, there is a need to change the policy,” he added. If the government decides to levy higher seignorage charges, the revenue generation can go up multifold.
Sources further added that if the government were to introduce a fresh sand policy, it would examine the policies of other States. The official observed model being implemented in Telangana could be adopted by the State government.
“In the neighbouring State, the Telangana State Mineral Development Corporation engages the contractors (through competitive bidding). Then, the sand would be sold through the corporation. We can adopt this as the exchequer will get its revenue and the consumer price can also be regulated. Other State policies also can be studied,” the official suggested.
Not free
The ‘free’ policy introduced in early 2016 by the TDP government, lifted cess on sand to lighten the burden on consumers. Only transportation charges are being collected from consumers. However, it has failed to benefit both State and people as price skyrocketed from Rs 2,000 to Rs 10,000 per truckload