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Realty players import sand from Indonesia, Philippines

Expects an increase in construction cost by Rs 40 to 80 per sq ft

Sanjay Jog  |  Mumbai 

Realty players look at Indonesia, Philippines for sand import due to acute shortage

Hit by acute shortage of sand, city realty players are importing it from Indonesia and Philippines to complete pending projects.

This is in addition to the supply from Dhule district and neighbouring Gujarat, as the Maharashtra government had imposed several restrictions on sand mining.

Already a ship carrying 50,000 tonne of sand has arrived at the Mumbai port.

Realty players point out sand shortage has led to increase in its price to Rs 13,000 a brass from Rs 5,000 a brass (one brass is equal to 100 cubic ft of sand). According to them, the imported sand would cost about Rs 20,000 a brass. This will lead to rise in construction cost by Rs 40-80 per sq ft.

A state revenue department official said the respective district administration has been delegated powers to auction sand.

This is to avoid illegal sand mining.

National Real Estate Development Council Chairman Sunil Mantri told Business Standard: ''Realty players are faced with acute shortage of sand. Procurement of sand is a big issue and its import is one of the options being explored. However, the government needs to provide a slew of incentives for pre-fabrication or other techniques to reduce dependence on sand.''

Builders' Association of India spokesman Ananad Gupta emphasised the need for a complete review of the sand dredging policy.

According to the policy, respective district collector and the tahsildar are supposed to auction sand dredging contracts every year.

These officers deliberately do not conduct the auction and create an artificial shortage, forcing sand dredger and sand trader to become sand mafia.

However, this adversely impacts the realty players,'' he noted.

Gupta said the realty players have to import the sand, though there are sufficient sand recourses within the country.

EACH GRAIN COUNTS

  • Import of sand from Indonesia and Philippines seeks to boost pending and ongoing projects.

  • This is in view of the several restrictions imposed by the state government on river sand mining.

  • 50,000 tonne of sand has already arrived at the Mumbai port.

  • Sand shortage hiked price from Rs 5,000 per brass to Rs 13,000 per brass
  • Import from Indonesia and Philippines will cause construction cost to rise by Rs 40 to 80 per sq ft.

  • Respective district administration has been delegated powers to auction sand to avoid illegal sand mining and curb sand mafias

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First Published: Sat, October 24 2015. 21:50 IST
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