With the opening of construction activities from the lockdown, the State government has permitted mining of sand in tanks, ponds and patta lands in gram panchayat limits under the new sand mining policy.

This decision would not only cater to the construction industry’s demand but also bring revenue to the cash-strapped government. The government is expected to earn an annual revenue of ₹70 crore.

The construction activities which have come to a standstill during the lockdown since last month are expected to resume in full swing from Monday, sources said.

The decisionwould also help to check rising prices of sand and addresses the issue of its shortage, particularly in coastal districts. So far, sand was being largely extracted from river-beds.

Under the new policy, which was approved by the State Cabinet on Thursday, tahsildars of taluks have been empowered to grant permission for mining and auctioning of sand. A new authority would be constituted under the policy to govern sand mining and auctioning, Law and Parliamentary Affairs Minister J.C. Madhuswamy said after a Cabinet meeting on Thursday.

The price for sand, which would be used for public construction activities, was fixed at ₹700 per tonne. Real estate developers and private contractors have to participate in the auction for the quota.

For addressing shortage of sand for construction activities, the government has been encouraging small crushing units to produce manufactured sand (m-sand) by providing various tax incentives.