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If there is one thing that connects the nondescript Iruvanjipuzha river in Kerala’s Calicut district to the mighty Yamuna in Delhi, it is sand-mining.
Rampant sand-mining has left these rivers with depleted water levels, forcing the National Green Tribunal to impose a country-wide ban.
With the National Green Tribunal banning mining and sand removal from rivers without approval from environmental agencies, real estate sector say that sand-mining ban may result in project delays and a price rise in immediate term.
Sanjay Dutt, Executive MD (South Asia), at Cushman and Wakefield, says the ban will impact supplies and result in delays.
Under scrutiny
“The immediate reaction will be a price hike by the vendors, resulting in an overall price rise”, he added. The sand mining industry is estimated at over Rs 7,500 crore. Demand is from sectors such as real estate, construction and infrastructure project.
The industry has been under scrutiny following the suspension of Durga Shakti Nagpal, the SDM of Gautam Budh Nagar. The official was suspended for taking on the powerful sand mafia in Uttar Pradesh.
On May 15, mining inspector Ashish Kumar seized 46,538 cubic metres of illegally mined sand. This seizure alone was worth almost Rs 77 lakh.
Environmentalists point out that licences are violated and sand is dredged from any given source, including the seashore. The mining operation on riverbeds is encouraged largely by the increased demand for sand for construction by realtors, with most builders scouting for cheap sand to keep project costs low.
Contractors source sand for as low as Rs 10,000 a truckload and sell it at thrice the cost. Shobhit Agarwal, MD - Capital Markets, Jones Lang LaSalle India, in recent report said project costs are moving northward.
Meanwhile, industry players suggest that India can take cue from the West, which is moving away from sand.
They are instead using crushed industrial waste, called aggregate, in construction and metal slacks. Ravi Saund, COO, CHD Developers, said the company is looking at an alternative to sand like sand-dust and even fly ash.
“There is bound to be time delay in project executions,” he said adding the company is in the process of engaging a consultant to mitigate the use of sand in its projects.
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