Maharashtra Cabinet Approves New Sand Policy With Free Quota For Home Builders, Auctions For Extraction Rights
The Maharashtra cabinet has officially approved a long-awaited Sand Policy, aiming to make sand more accessible for construction and ensure an efficient system for its distribution. Under this new policy, 5 brass of sand will be made available free of cost to individuals building houses for personal use. In a significant shift from the past, the extraction and sale of sand from river and creek beds will now be conducted through e-auctions, replacing the existing online sale and depot system.
Chief Minister Devendra Fadnavis chaired the state cabinet meeting where the policy was approved. The new Sand Policy aims to reduce sourcing challenges and make sand more affordable for the general public constructing their own homes.
The extraction and sale of sand from river and creek beds will now follow an auction-based model. This move is expected to introduce transparency and competition, addressing long-standing concerns over pricing and access. Rights to extract sand will be granted to the highest bidders through a regulated e-auction system.
Given the environmental impact and depletion of natural sand, the government has decided to promote the use of artificial sand (M-sand), made from stone crushing. To support this, it will be mandatory to use 20% M-sand in all government and semi-government construction projects. This requirement will increase gradually, and within the next three years, M-sand will become compulsory for all construction projects in the state.
E-Auction and Licensing for Sand Groups
The policy outlines that after obtaining the necessary environmental clearances, sub-divisional officers will collectively conduct e-auctions for all sand groups in their districts. The auction rights for riverbed sand will be valid for two years, while those for creek-bed sand will last for three years. This system ensures fair and transparent distribution of sand extraction rights.
Free Sand for Rural and Agricultural Needs
Sand from areas not covered by the auctions, such as smaller rivers, streams, and local sand groups, will be made available free of cost to local communities. Villagers can use this sand for constructing homes or for agricultural purposes, such as digging wells. In the event of natural disasters—such as floods—where sand accumulates on agricultural land, that sand will be made available for land reclamation and farming use.
Traditional Extraction and Penalties for Illegal Transport
The policy preserves traditional methods of sand extraction using hand tools (Haatpati-Dubi) for local sand groups. These groups will be issued licenses under a non-tender system. To curb illegal sand transport, a fine of Rs 1 lakh will be imposed on individuals caught transporting sand unlawfully using tractors.
Sand Pricing and Regulation of External Supply
The government has fixed sand prices to ensure affordability. The rate for sand from overburden material (wash sand) will be Rs 200 per brass, and for other minor minerals, it will be Rs 25 per brass. To stabilize the market and prevent exploitation, the government will also regulate the import of sand from other states, curbing illegal transportation.
Minister’s Statement and Upcoming M-Sand Policy
Revenue Minister Chandrashekhar Bawankule shared further details: “The state government has approved the Sand Policy today, including provisions for villages near riverbeds and creek beds to lift sand for constructing their houses. We are bringing changes to the old sand policy and discontinuing the depot system. Our goal is to ensure that everyone, especially the middle class, benefits from affordable sand prices.”
The minister also announced that the state government will unveil a separate M-Sand policy next Tuesday. M-sand, known for its strength and efficiency, will be mandated for use in projects handled by the Public Works Department (PWD), Irrigation Department, and other government agencies.
He further emphasized the government's commitment to addressing issues related to sand transportation from neighboring states and said strict controls would be implemented to prevent illegal activities.
The newly approved Sand Policy is expected to streamline sand distribution, promote sustainable extraction, and ensure affordable access to this essential construction material across Maharashtra.
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