Builders hope for revival as sand cost shows signs of easing

When questions were raised before the courts about unsustainable – and often illegal – mining, quarries were shut, sand became scarce and its price shot through the roof. Unable to afford the spike in prices of construction material, the industry had come to a virtual stand-still. What changed now is the State Government’s decision earlier this month to import three million tonnes of river sand from abroad in the next two years. This Rs 548.73 crore boost is expected to offer a much needed respite, say builders in the city.

“Going by the present scenario, construction industry will be on the positive side. Importing 30 lakh tonnes of river sand, bids for which have been invited, would help sell and buy homes at affordable cost,” said S Ramaprabhu, secretary of Southern Builders Association of India, exuding confidence about growing construction activities in the coming days. 

In addition, the Sand Mining Wing of the PWD floated an e-tender for opening new sand quarries across the State that has already received good response, according to an official. “We are doing background verification. New quarries will be opened by the end of March,” the official added. 

Ramaprabhu opined that opening new quarries and importing it would steadily reduce the prices of both river sand and M-sand.

Even the real estate players are eyeing sand price reduction, which would help them complete slow – and even stalled – projects. “With the government opening up quarries, we are expecting – and hoping for a reduction of 50 per cent in sand prices,” said Suresh Krishna, president of the Chennai unit of the Confederation of Real Estate Developers’ Associations of India (Credai).

“Sand import would reduce price, but the government should open more quarries, under stern guidelines, as we have enough natural resources in the state,” commented Navin Housing and Properties MD Dr R Kumar. 

The other development that has enthused the industry is the CMDA promising to approve planning permissions in a time-bound manner. Senior officials have also initiated measures to clear backlog of online applications, said a source. “CMDA is formulating a mechanism under which planning permission will be given within 45 days so that construction work can be started without any difficulty,” said a senior official. 

For a sector that was badly hit by a series of developments including spiralling price of sand, cement prices among other factors, the expected easing of sand price has come as a big relief. The shortage had sent up sand price – river sand was being sold at Rs 13,000 per unit, more than double of the price prior to the shutting of the quarries. Even M-sand turned costly, climbing up to Rs 6,000 from Rs 3,000. Many builders had even stopped construction midway, preferring to wait for the price to decline. 

“If there is sufficient sand available to meet the demand, its price will reduce steadily, to even Rs 900 – Rs 1,200 per unit,” said a builder.