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Sand prices are still ruling high in Visakhapatnam district even after the introduction of the new sand policy by the Andhra Pradesh Government and, coupled with the curbs imposed by the State Government in lifting sand from the reaches, it is becoming very difficult for builders to take up new projects or complete the ongoing ones, according to industry representatives.
The representatives of the Builders' Association of India (BAI), the Confederation of Real Estate Developers' Association of India (CREDAI), and other associations complained at a press meet here on Friday that the situation had in fact worsened in the district after the introduction of the new sand policy due to certain lacunae.
B. Raja Srinivas, the Chairman of the Visakhapatnam chapter of the CREDAI, said the sand prices had shot up from Rs 2,200 to Rs 5,500 per unit (2 cubic metres) and the promised relief after the new sand policy was not visible anywhere. The increase in sand rates had led to hike in construction cost to the extent of Rs 200 per sft and many apartment complexes had got stalled, he said.
He said the Government had fixed the rate at Rs 1,000 per cubic metre at the sand reach, which was on the higher side, and the transport costs were adding to the woes of builders. Srinivas urged the State Government to reduce the price of sand to Rs 450 per cubic metre and lift the restrictions on sand transport.
K. Visweswara Rao, representing the Builders' Association of India (BAI), said many members of the association were executing Government projects and the sand rate fixed by the Government was much higher than that being paid to them for Government works. It was leading to cost escalation and the Government was not paying for the escalation.
He said either the Government should make available sand to the builders at the rate fixed by it or ensure that the market rate does not exceed the rate prescribed by it. "If it cannot do either, it should at least pay us the cost escalation caused by high sand prices," he pleaded.
G. Sambasiva Rao, of the Confederation of Indian Industry (CII), said the State Government should ensure the quality of sand for construction and bring down the prices by correcting the flaws in the policy. The curbs on transport of sand should also be lifted, he pleaded.
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