The Andhra Pradesh Government has awarded a two-year sand mining lease to the Delhi-based Jayaprakash Power Ventures Limited of Jaypee Group, that is expected to generate revenue of about ₹765 crore per annum to the State exchequer.

The State Government had announced a new sand policy in November 2020 to tackle illegal sand mining. In line with this policy, the Department of Mines and Geology had enlisted the services of Metal Scrap Trading Corporation Limited (MSTC), a Central PSU, under the Steel Ministry, to select an appropriate agency/company to take up sand mining, storage and sales for a period of two years.

The MSTC through a tender process selected Jayaprakash Power Ventures Ltd, which offered ₹477.50 crore, ₹745.70 crore and ₹305.60 crore for three packages spread over two years.

No intermediaries

According to the Government, under the old sand mining policy, the State earned a net income of ₹161.30 crore during 2019-20 and ₹380 crore in 2020-21 up to February 2021. It is now expected to generate about ₹765 crore per annum under the upgraded Sand Policy.

This upgraded policy will provide for a number of facilities for sand buyers. Since the stock yard is being set up at the sand reaches, a buyer can check the quality of the sand directly at the ramps and take the required quantum of sand in vehicle from the site.

Further, there will be same price at each reach across the State and a price will have an upper ceiling which is determined regionally based on distance.

Now there is no need to apply online and there will be no involvement of a transport conglomerate or intermediaries in the matter of sand supply. Those who cannot make arrangement of vehicle for transport of sand, will have the option of obtaining sand through a transport conglomerate.

Following this development, sand excavation is no longer permitted on Patta (graded) Lands. And quality sand will be made available as sand excavation is allowed only in the open reaches. The Andhra Pradesh Mining Development Corporation will serve as the nodal agency.

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