Rising sand prices to hit construction projects

Livelihood of construction workers at stake

C Shivakumar

Chennai:

The sand prices that have nearly doubled with the closure of quarries by the state government has hit hard many construction projects posing uncertainty among the real estate sector and a threat to the livelihood of lakhs construction workers in the city.

R Munirathnam, general secretary, Tamil Nadu Sand Lorry Owners Association, told Express that projects in Chennai are hit as sand is available only in quarries in Tanjore, Pudukottai, Nagapattinam, Trichy, Tiruvarur and Karur.

“Currently sand is available in only 15 quarries in the state as more than 70 were closed down due to orders from National Green Tribunal,” he says.

Interestingly, this has made sand dearer and a truckload of sand that was earlier priced Rs 25,000 is now costing around Rs 40,000. Although the sand from the riverbed is sold at Rs 12,000. It is the rising diesel prices and transportation costs that is adding to the cost and the misery of Chennai property developers. “Now it takes nearly seven days to get a truckload of sand as there are no quarries in Kanchipuram, Vellore, Cuddalore, Tiruvarur, Villupuram and Thiruvallur,” he says.

Interestingly, this has also affected the livelihood of truck operators as only 8,000 of the nearly 35,000 lorries that used to bring in sand is operational, he said.

R Radhkrishnan, former president and trustee of Builders Association of India (BAI) said that after the closure of sand quarries in Kanchipuram and adjoining areas, a cubic feet of sand that usually costs around Rs 35 to Rs 40 per cubic feet is now costing Rs 65 to Rs 70 per cubic feet.

“This will have a serious impact on the industry and many projects have been put on hold due to the escalating sand prices,” Radhakrishnan said. “Already a private promoter is burdened with so many laws and with rising sand prices, the situation is getting worse,” he said.

Radhkarishnan said blamed the sand mafia, which has resulted in National Green Tribunal passing the order.

“They store the sand in godowns and it was the photographs of these godowns that resulted in the closure of quarries. Now these sand mafia would only gain due to the closure of quarries as they can sell the sand at their own prices,” he said.

He said the rising sand prices would also impact government infrastructure projects besides hitting the economic growth of the state.

The chairman of Code of Conduct (CoC) and Consumer Grievance Redressal Forum (CGDR) of Confederation of Real Estate Developers' Associations of India (CREDAI) T Chitty Babu said that property developers who have started their projects will be continuing ahead with their projects but new projects that have yet to get started would be put on hold.

The organizer of Niramaan Mazdoor Panchayat Sangh Y Arul Doss told Express that they oppose the price rise as it will have a telling effect on the livelihood of construction workers who could lose their jobs as construction projects would get delayed. “Most of them are daily wage workers who won’t be paid as there won’t be any work,” he says.

Although government officials refused to comment on the issue stating it is sensitive issue but added that the issue would be sorted out in a couple of days. “The government is looking at various proposals,” sources added