Chandigarh, September 1
The Punjab Government has found a novel way to bring down the ever-increasing prices of sand and gravel. The government will now excavate sand and aggregate (mixture of sand and bajri) from riverbed quarries and sell these minor minerals at the pithead on its own.

The new mining policy, prepared by Punjab Industries Department, will be placed before the Cabinet on Tuesday. The role of middlemen and contractors in the sand and gravel mining will be eliminated in the new policy. A government agency will be chosen to excavate minor minerals and the same, or another agency that is already handling distribution of some supplies, will be retailing the sand and aggregate at the pithead itself. Sources in the Mining Department say the idea is to bring down the prices of sand and gravel. The Shiromani Akali Dal-BJP government has been facing public wrath because of the ever-increasing prices of sand and aggregate. It is alleged that the mining operation in the state is being run by a power cartel, owing allegiance to politicians. 

The state government has often blamed the high price of sand and gravel to the gap in demand and supply, but sources say contractors have increased the prices. Mining contractors across Punjab are allegedly charging “gunda” tax on sand and gravel, over and above the royalty they are allowed as per rules. The “gunda” tax is the “protection money” that musclemen deployed by these contractors charge from truckers. There is a huge gap in the price of sand and gravel at the pithead and the price that a consumer pays.

The price of sand at the pithead is around Rs 1,700-1,800 per 100 cubic feet, but after the “gunda” tax and the profit margin of contractors, the common man has to pay Rs 2,900-3,200 per 100 cubic feet.

In case of the aggregate, the price at the pithead is Rs 1,400-1,500 per 100 cubic feet but the consumer pays Rs 2,600-2,800 per 100 cubic feet.

Sources said initially the government proposes to start mining and retailing the extracted minor minerals at pitheads of 37 quarries. All these quarries are over five hectares and environmental clearance for these has been obtained. The quarries will be auctioned by September-end as mining is banned during monsoon. 

* Aims at ending the role of middlemen and contractors 

* A government agency will be chosen to excavate minor minerals

* Will bring down prices of sand and gravel.