CHENNAI: The Tamil Nadu government’s ban on the transportation of M-sand and other construction aggregates to neighbouring states for three months is expected to ease the severe demand-supply imbalance within the state and, in turn, marginally reduce illegal rough stone extraction. The move is also anticipated to curb cartelisation in the sale of construction materials.
Industry stakeholders have long cited the wide gap between demand and supply as one of the key reasons behind violations in stone quarries and crusher units. According to industry sources, the state’s daily requirement for construction aggregates stands at around 5.25 lakh units, while the government’s approved quarry production capacity is only about 1.2 lakh units. It is alleged that nearly 60% of the construction aggregates consumed in the state are sourced through illegal mining operations, resulting in significant revenue loss for both the Commercial Taxes Department and the Department of Geology and Mining.
The state has more than 2,000 stone quarries with legal permits. The government’s decision is estimated to have halted the movement of nearly 15% of the construction aggregates produced in the state, particularly from around 200 quarries located in border districts such as Kanniyakumari, Tenkasi, Tirunelveli, Coimbatore, Krishnagiri, and Dharmapuri. Construction aggregates include crushed stone, M-sand, P-sand, gravel, rough stone, and other related materials.
“With more construction aggregates now available within Tamil Nadu, infrastructure projects undertaken by private developers, PWD, state highways, NHAI, and other agencies are expected to benefit. This could eventually reduce the extent of illegal mining activities,” said a retired official from the mining department.
The official further noted that existing mining regulations were not framed with market demand in mind. “As a result, violations become a norm to meet the industry demand. The new restrictions are likely to help bridge the demand-supply gap, thereby reducing the need for illegal rough stone extraction,” he said.
K Chinnaswamy, president of Stone Quarry, Crusher and Lorry Owners Association, criticised the government’s decision, claiming it was influenced by local activists opposed to quarry operations, particularly in border districts. “The industry has been unfairly portrayed as being involved in criminal activities. It is unfortunate that the government appears to have adopted a similar stance,” he said, while urging the government to withdraw the ban.
In contrast, Sella Rajamani, president of Tamil Nadu Sand Lorry Owners Federation, welcomed the move, stating that it would help reduce illegal mining activities and curb the operation of overloaded trucks across the state.
Bridging gap in demand-supply
Over 2,000 stone quarries operate with valid legal permits in TN
TN’s daily demand for M-sand, P-sand, and other construction aggregates is ~5.25 lakh units
TN govt’s permitted production limit is only 1.2 lakh units per day
Estimated 60% of demand is met through illegal mining activities
Consequently, a major portion of supply falls outside the ambit of GST and other taxes
With the ban in place, around 15% of construction aggregates will now be available exclusively for use within TN
Ban expected to lead to moderate reduction in mining violations
