Karnataka Government Fixes River Sand Price at ₹850 per Tonne: New Tender Process to Benefit Locals

The Karnataka government has set the river sand price at ₹850 per tonne, with district-wise tenders to be called for the extraction and transportation of sand. The new policy aims to benefit local villagers by offering a lower price of ₹300 per tonne for sand extracted at the gram panchayat (GP) level, according to S.S. Mallikarjun, Minister for Mines and Geology.

Under the new policy, the price for high-quality river sand has been fixed at ₹850 per tonne, and tenders will be issued for its extraction and transport across different districts. The minimum cost for extraction and transportation has been set at ₹450 per tonne. Bidders quoting ₹450 or lower will be awarded the tender for sand extraction. In cases where multiple bidders quote the same price, a lottery system will determine the winner.

For the benefit of local residents, the Karnataka government has introduced a special scheme for gram panchayats, allowing them to access sand at a reduced price of ₹300 per tonne. The responsibility of identifying and managing available sand in ponds and small tanks at the GP level will be delegated to the respective gram panchayats. Local people who require sand can extract and transport it from ponds at their own cost.

The tender process will be handled by district committees, with sand extraction taking place in designated riverbeds and major tanks. Sand quality will be categorized into grades IV and V, and the extraction will be conducted according to the designated quality standards.

Additionally, the new policy incorporates a roster system for tenders, prioritizing applications from SCs, STs, physically challenged individuals, and general category applicants. Tender applications must be submitted through an e-portal, with tenders being auctioned on a district-wise basis. This approach is expected to increase state revenue while supporting inclusive participation in the sand extraction process.

With this policy, the Karnataka government is addressing the demand for river sand while ensuring local involvement and transparency in the extraction process. The tender system aims to maintain fair pricing, promote economic opportunities for marginalized groups, and streamline the sand supply for construction and other essential industries.