Auction of 59 sand quarries cancelled

Ruchika M Khanna

Tribune News Service

Chandigarh, April 24

The government has cancelled the auction of 59 sand quarries across the state.

Sources in the Industries Department told The Tribune that the auction of these quarries in Nawanshahr, Mohali, Jalandhar, Amritsar, Fazilka, Ferozepur, Gurdaspur, Ropar, Ludhiana, Pathankot and Tarn Taran, originally scheduled for April 17, had been withdrawn after the Council of Ministers’ decision to revert to progressive bidding from the present system of reverse bidding.

The auction that was scheduled for May 5 will be held only after the new mining policy is approved.

Keeping in mind the severe shortage of minor minerals in the state and a demand-supply gap leading to soaring prices, the government was initially contemplating going in for reverse bidding of old quarries. Following the policy of progressive bidding for new sand quarries, whose environmental clearance by the Centre is expected soon, these will become operational by mid-August.

However, a letter issued by the Director, Mining, now says that the bid amount deposited by the contractors will be returned soon.

Inquiries by The Tribune reveal that prices have shot up as availability is restricted. In Patiala, the price of sand has gone up to Rs28,000 per truckload (800 cubic ft) or Rs35 per square ft (up from Rs30 last month) and that of aggregate has gone up to Rs21,600 per truckload. In Abohar, the price of gravel is Rs32 per square ft, up from Rs28. In Jalandhar, the price of sand has doubled in the past month.