Minor Mineral, Major Menace: Decoding the Socio-Political Landscape of Sand Mining in Andhra Pradesh

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On the second day of June in 2014, history etched a defining moment for Andhra Pradesh, as the state was carved into two, giving birth to the state of Telangana. In the midst of this seismic shift, the bustling city of Hyderabad found itself serving as the shared capital for both states, until a transitional era’s final embrace in 2024. From 2014 began the preparation for a new capital in Andhra Pradesh. A preparation fuelled by sand. 

Sand is the second most extracted resource after water, and construction cannot just happen with any sand. River beds and coasts are dredged and mined to source construction-grade sand. River sand mining involves removing sand from a river’s drainage network, and it inevitably has an impact on the environment – which is what we are looking at through this report. The extent of its effects varies based on factors such as the rate and scale of extraction, and the methods employed.

Environmental Justice and Riverine Sustainability

Riverine Systems

Andhra Pradesh (here onwards we refer to the state of Andhra Pradesh post the bifurcation in 2014), a riverine state, is blessed with 40 major, medium, and minor rivers, including the Godavari, Krishna, Vamsadhara, Nagavali, and Pennar, which are significant interstate rivers. Additionally, there are smaller streams and tributaries.
The Godavari River enters Andhra Pradesh at Bhurgampad Mandal and flows about 250 km eastward before merging into the Bay of Bengal.

The River Tungabhadra, a tributary of the Krishna River, forms the boundary between Karnataka and Andhra Pradesh for 58 km. From there, it continues past Rajolibanda anicut, becoming the border between Telangana and Andhra Pradesh until it meets the main Krishna at Srisailam. The Krishna River then acts as the boundary between Telangana and Andhra Pradesh, flowing from Srisailam to Pulichintala, covering about 290 km and passing through the NSP Dam. After that, the river travels for 105 km through the Prakasam barrage at Vijayawada before finally joining the Bay of Bengal after a total journey of approximately 485 km within Andhra Pradesh.

As for the Pennar River, it stretches for a total length of 597 km from its source to its outfall into the Bay of Bengal in Nellore district, with 61 km in Karnataka and 536 km in Andhra Pradesh. Originating in the southwest region of Andhra Pradesh with a small catchment area in Karnataka, the Pennar River flows eastward before reaching the Bay of Bengal. ^[1]

The rivers of Andhra Pradesh are vital in preservation of ecological systems, irrigation for agriculture and general water supply to the residents.

River Sand Mining

Rampant sand mining in these riverine systems in Andhra Pradesh has caused fear of floods and damage to the groundwater available making lives of those living by these rivers difficult. Farmers from the many villages by the rivulets & streams in Chittoor district have expressed concern that indiscriminate sand mining that has left huge pits in the rivulet beds would endanger the groundwater table. And, residents of Shantinagar Colony in Srikakulam district have complained that sand mining is taking place at night in the Nagavali river that passes through the town and they’re worried about wells drying up and possible floods. ^[2]

Embracing the principles of sustainability is essential in ensuring the long-term health and resilience of these precious river systems for current and future generations. This idea is in line with what the Sustainable Sand Mining Guidelines of 2016 and 2020 envision for the country and its states. 

In thinking about sustainability, especially for practitioners of environmental justice, it becomes very important to understand that even if something is technically legal it could still be unsustainable and harmful for the environment. Therefore, it is important to question if we have legalized environmental degradation in a quest to fulfill urbanization and consumer greed. 

The Post-Bifurcation Retrospective 

“Sand has become a very important mineral for the expansion of society. Building activities have grown rapidly in developing countries, and subsequently the demand for construction-grade sand has increased tremendously. There is a lot of demand for quality sand in newly formed Andhra Pradesh, where a world class new capital city is under construction,” wrote Sankara Pitchaih P in a research article published in 2016. ^[3]

During the same year, Chandrababu Naidu, then the CM of Andhra Pradesh introduced the free sand policy.^[4] It was the first time such a policy had been introduced in the country. Sale of sand was essentially illegal. In 2014, when Naidu assumed power, his government initially provided a Rs 5 lakh loan to women self-help groups (SHGs) in villages to manage sand excavation and sales. However, this policy was later changed to a tendering system, leading to legal challenges. Litigation in the National Green Tribunal (NGT) demanded revenue from the tendering process be used for a green fund to preserve rivers. 

Responding to legal pressure, the government made sand available free of cost to consumers in March 2016, supposedly to aid the construction of houses for the poor. Unfortunately, this led to exploitation by the “sand mafia”, selling at black market prices of Rs 6,000 to Rs 10,000 per truck. The state reportedly incurred a loss of Rs 700 crore while certain individuals and contractors profited immensely. ^[5]

In April of 2019, amidst Assembly elections in the State, Magsaysay Award winner and Waterman of India Rajendra Singh wrote to the then Chief Secretary L.V. Subramanyam, urging for an immediate halt to indiscriminate and illegal sand mining being carried out with heavy machinery and barges near the Chief Minister’s residence in the Krishna River. ^[6]

The year before, his colleague Anumolu Gandhi had written to the NGT complaining about the same. In April 2019, the National Green Tribunal (NGT) responded to Gandhi’s plea by imposing an interim penalty of Rs 100 crore on the state government due to its inaction in preventing illegal sand mining. Emphasizing the government’s responsibility as a trustee of public and natural resources, the tribunal directed the chief secretary to immediately halt all unregulated sand mining. The NGT bench also expressed dissatisfaction with the heads of the relevant departments. 

To assess the environmental damage caused, the NGT established a committee comprising the Central Pollution Control Board (CPCB), Ministry of Environment, Forest & Climate Change (MoEFCC), National Institute of Mines (NIM) Dhanbad, Indian Institute of Technology (IIT) Roorkee, and Madras School of Economics. This committee was tasked with conducting the assessment within three months and submitting a comprehensive report. ^[7]

During the Assembly elections, Jagan Mohan Reddy, Naidu’s close contemporary, who would go on to become the new CM elect, had registered shock at the developments related to sand mining involving Naidu, including the interim 100 crore rupee fine, and promised introduction of laws to check illegal sand mining if he came to power. However, it remained to be seen how Reddy’s government would take the case at NGT further after assuming power. 

On May 12, 2020, the Supreme Court (SC) intervened in the interest of natural justice and temporarily suspended the NGT’s directive to the Andhra Pradesh Govt to deposit Rs 100 crores for failing to prevent illegal sand mining. The apex court granted the government the right to submit a suitable application before the NGT within two weeks, as the government contended that it hadn’t been given a chance to present its case before the NGT’s order was issued. ^[9]

The state government, in a bid to implement a new sand mining policy starting July 1, 2019, took decisive action on June 11, 2019, by imposing a two-week ban on sand mining and transportation. This move effectively put an end to the controversial free sand mining policy introduced by the previous TDP (Telugu Desam Party, under Chandrababu Naidu) regime.

Furthermore, on July 23, 2019, the YSRCP (Yuvajana Shramika Rythu Congress Party, under Jagan Mohan Reddy) government, contrary to its previous stance, asserted that no illegal sand mining occurred in River Krishna near the residence of former Chief Minister N. Chandrababu Naidu at Undavalli. Senior advocate Venkataramani, presenting the government’s argument before the NGT, stated that only a desilting exercise had been conducted in the river, and there was no illegal sand mining upstream of the Prakasam barrage. ^[10]

The current government’s position mirrored the stance taken by the previous Chandrababu Naidu’s administration. The State’s senior counsel justified the desilting as part of the National Inland Waterway project, emphasizing that no clearance was required for this purpose. Furthermore, he contended that the extracted sand was utilized in the Amaravati capital city projects.

Surprised by this, one of the petitioners involved in the case expressed disbelief at recent statements made by CM Jagan Mohan Reddy during a collector’s conference. The Chief Minister reportedly denied rampant illegal mining upstream of the Prakasam barrage. With the government-appointed committee confirming the occurrence of illegal sand mining in its report, the petitioner questioned the need for further evidence. 

Revamping Sand Mining Regulations: Andhra Pradesh’s New Policy, 2019

(September, 2019 amendment to Andhra Pradesh Minor Mineral Concession Rules 1966)^[11]

The Andhra Pradesh government implemented a new sand policy on September 4, 2019, with the aim of curbing hoarding, black marketing, and reducing sand prices. The policy sought to ensure sustainable sand mining, compliance with environmental regulations, affordability, and increased revenue to the state exchequer. The Andhra Pradesh Mineral Development Corporation (APMDC) was tasked with operating stockyards on behalf of the government. ^[12]

Policy Details:

1. Classification of Excavation:- Water bodies (rivers, rivulets, streams, and tanks) were categorized from I to V and higher.- Categories I, II, and III: District administration regulated sand excavation for domestic use within the district, including housing schemes for government-sponsored weaker sections. Manual excavation was mandated, and sand was to be transported to specified stockyards for disposal by APMDC Ltd.- Categories IV, V, and higher: Sand excavation in river streams was governed by Andhra Pradesh Minor Mineral Concession Rules (APMMC) 1966, Environment Protection Act (EPA), 1996, and other environmental rules.
2. Pricing and Stockyards:- A tonne of sand was priced at Rs 370 at APMDC-run stockyards.- The government aimed to increase stock points from 41 to 70-80 across 13 districts by October of 2019.
3. Involvement of Private Agricultural Patta Lands:- APMDC could identify certain private agricultural patta lands for sand casting and pay the landowner a beneficiary amount to transfer excavation rights.- APMDC paid Rs 60 per cubic meter to farmers for sand extraction.
4. Sand Extraction in Scheduled Areas:- Sand extraction in Scheduled Areas was governed by Panchayats Extension to Scheduled Areas (PESA) Rules, 2011, under the direct supervision of ITDA or District Collector and Magistrate.
5. Anti-Corruption Measures:- All sand-carrying vehicles had to have GPS devices and be registered with APMDC and Mines & Geology Department.- Transporting extracted sand outside Andhra Pradesh was prohibited. Sale transactions were credited directly to the government’s treasury account.
6. Competitive Reverse Tendering:- APMDC was to make allotments  of sand extraction, loading, transportation, and other related work through a competitive reverse tendering process.
7. CCTV Monitoring:- CCTV cameras were to be installed at sand reaches, stockyards, and weighbridges to monitor sand operations and vehicular movement.

With the new sand policy, Andhra Pradesh aimed to address sand-related issues, promote sustainable practices, and enhance transparency in the sector. The involvement of APMDC and strict monitoring measures were expected to streamline sand operations and ensure compliance with environmental norms.

During the review meetings in subsequent weeks on the implementation of the New Sand Policy (based on the Amendment issued in September, 2019) in the State, it was brought to the notice of the Government that certain individuals had been engaging in illegal stocking, hoarding, black-marketing, and resale of sand.

This hindered the Government’s objective of ensuring affordable prices of sand for the public. After carefully examining the entire matter, the Government decided to curb these illegal activities by imposing stringent punishment. In this issue, they ordered to impose a punishment of imprisonment for up to two years and a fine of Rs. 2,00,000/- (Rupees Two Lakhs) on the individuals involved in illegal stocking, hoarding, black-marketing, and resale of sand. ^[13]

But since the implementation of the new policy in 2019, the authorities struggled to meet the daily sand demand, which hovered around 1.50 lakh T, as they could only provide up to 40,000 T per day. Complaints emerged about the online stocks depleting rapidly. Moreover, there were allegations of sand diversion from stockyards to cities like Bengaluru, Chennai, and Hyderabad, where it was allegedly sold for exorbitant prices ranging from Rs 80,000 to Rs 1 lakh per truck. And despite the government setting the price at Rs 375 per tonne, reportedly the black-market price surged to approximately Rs 3850 per tonne. ^{[14] [15]}

Jaiprakash Power Ventures Limited

In 2021, Jaiprakash Power Ventures Ltd. (JPVL), a subsidiary of the Jaypee Group, secured the bid to conduct sand mining in the State of Andhra Pradesh for a duration of two years. This decision was made in accordance with the upgraded sand policy of 2019 [G.O.Ms.No.78, Ind. & Com. (M.III) Dept Dt:12.11.2020, G.O.Ms.No.25, Ind. & Com. (M.III) Dept Dt:16.04.2021]  and it was projected to yield an annual revenue of approximately Rs. 765 Crores. ^[16]

The selection of JPVL for the sand mining, storage, and sales contract was carried out by Metal Scrap Trade Corporation (MSTC), a Public Sector Undertaking under the Union Ministry of Steel. Through a competitive bidding process, JPVL won the contract by offering Rs. 477.50 crore for the first package, Rs. 745.70 crore for the second package, and Rs. 305.60 crore for the third package. The government had divided the state into three zones for sand excavation in various reaches, and JPVL’s bids were the highest for all three packages.

Prior to this development, in January 2021, the State Department of Mines and Geology had signed a Memorandum of Understanding (MoU) with MSTC Ltd. to ensure a transparent and unbiased selection of the eligible agency for sand mining, storage, and sales.

JPVL, based in Delhi, is a prominent private company in the country, involved in power generation as well as other sectors such as Engineering & Construction, Cement, Real Estate, Expressways, Fertilizer, Hospitality, and Healthcare.

The upgraded Sand Policy introduced several facilities for customers:

1. Stockyards were established at the reaches, allowing customers to directly inspect the sand quality at the ramps and select their preferred reach to procure the required quantity of sand using their own vehicles.
2. Uniform prices were set at each reach across the State, with regional upper ceiling prices based on distance. The public was provided with contact details to report any complaints about excessive rates, and strict action would be taken on such grievances.
3. The application process was eliminated, and recommendations were prohibited. Moreover, the involvement of transport companies or intermediaries in the sand supply process was discontinued.
4. Customers who were unable to arrange their own transportation could obtain sand through a transport company.
5. Sand excavation on Patta (graded) Lands was no longer allowed, ensuring that only quality sand would be available from open reaches.

Efforts were underway to transfer sand excavation and supply from the existing policy implemented by the Andhra Pradesh Mining Development Corporation (APMDC) to the contractor chosen under the new Upgraded Policy. This shift aimed to improve the transparency and efficiency of the sand mining operations.

Transparency, Availability of Documents and Gaps in Data

Guidelines

The detailed documents pertaining to Acts and Orders that govern sand mining in Andhra Pradesh from both State and Central Government are available under the Policy/Legislation section of the Department of Mines and Geology website (https://www.mines.ap.gov.in/miningportal/Login.aspx). The amendments to the Andhra Pradesh Minor Mineral Concession (APMMC) Rules, which is the major State Law, has a separate drop down list of its own on the site. 

Some of these guidelines are linked below and can also be found archived on the India Sand Watch Platform.

• THE ANDHRA PRADESH WATER, LAND AND TREES RULES, 2004 
• ANDHRA PRADESH MINOR MINERAL CONCESSION RULES, 1966 (APMMC)
• Amendement (September, 2019) to APMMC Rules 1966
• Amendement (November, 2019) to APMMC Rules 1966
• Amendement (April, 2021) to APMMC Rules 1966
• Andhra Pradesh Government Proceedings (August, 2021) on Sand Depot wise Sale Prices 

News Reports

News Reports are a valuable source when trying to track a time-line of events or grasp the ground-level narrative. Most news reports since 2019 have been focused on the policy changes, and the subsequent effects and enforcement of the policy.

They’re also focused on the various NGT cases that the State of Andhra Pradesh has had to respond to, especially in the case of the Krishna and Araniyar river. Further, there is significant reporting on political clashes and differences of opinion on the matter of sand mining amongst the parties in Andhra Pradesh. ^[17]

While news reports are available aplenty with regards to most pertinent issues, the author identified an area that suffered from lack of coverage. 

Example: https://www.thehindubusinessline.com/news/along-with-covid-19-control-ap-begins-sand-mining-to-set-economy-rolling/article31224845.ece

This news report from April 1, 2020, says “Apart from maintaining social distancing and sanitisation, increased use of advanced machinery will be undertaken to minimize the use of human labor,” in the context of taking proper precautions to begin sand mining during covid so as to not exacerbate the issue of sand scarcity in Andhra Pradesh. There is no other news report or govt memo available online that confirms this or speaks of it given the importance of what advanced machinery can mean for sand mining, especially if it isn’t clearly defined.

However, it is worth noting, that apart from coverage from national and international news agencies, the frequent reportage of local dailies such as The Hans India, Sakshi Post, and Eenadu have been instrumental in the local narrative being accessible to the public. 

District Survey Reports

District Survey Reports (DSR) are required by order of the Sustainable Sand Mining Guidelines, 2016. They are essential tools for sustainable and responsible sand mining in Indian states.

They help in proper resource management, environmental protection, scientific-decision making, and effective regulation of sand mining activities by consolidating data about quantity and quality of sand, potential and existing locations of sand mining with geo-coordinates, regulatory framework, environmental impact, land use/cover, revenue generated and replenishment rate among others.

Most importantly, only locations fit for mining identified in the DSRs can be auctioned for river sand mining. Therefore, it becomes an important tool for corroborative evidence. Without comprehensive DSRs that include such data, there is a lack of transparency and clear data backing to the sand mining taking place in any given district. 

For most districts in Andhra Pradesh, the available report online is from 2018, before the New Sand Policy was introduced in 2019, and JP Ventures took over all mining activities in the state in 2021. It is important that DSRs be made available for the years after these changes since, for example, there is evidence of sand mining taking place at present in the downstream of Prakasam Barrage that connects Guntur and Krishna districts, both of which don’t have a publicly available Report post 2018. 

For certain districts such as Srikakulam, Nellore, East Godavari and West Godavari, district survey reports from 2020 and 2021 are available and can be found archived on the India Sand Watch Platform. 

It is apparent from the observations above that there is a serious gap in data available to the public. The Reports from 2020 and 2021 vaguely talk about the process of replenishment but do not provide any data on how deposition is calculated. 

Further, on the Andhra Pradesh Department of Mines and Geology website (https://www.mines.ap.gov.in/miningportal/), under the ‘About Us’ section there is a drop down for District Survey Reports. While all the districts are listed in this drop down, all of the reports are from 2018 (even for the 4 districts that have publicly available recent DSRs from other sources) and have very little information about river sand mining such as active sand reaches and dispatches during the last 3 years. 

In order to find the recent survey reports with valuable information about potential sand reaches, points of de-siltation and annual deposition, the author had to rely on web search results instead of having access to structured data from the department. 

Court Documents

In case of Anumolu Gandhi vs State of Andhra Pradesh (discussed earlier in this report), all information was sourced from the NGT website wherein all the proceedings are documented since the first hearing. It was a comprehensive source of data since the court proceedings had detailed findings from the various committees and studies employed during the hearings. A lot of numbers wouldn’t have come to light if not for the case and the subsequent findings. 

Often the National Green Tribunal and other courts initiate suo moto cases based on news paper articles that report issues of environmental and ecological importance. The proceedings of such cases then lead to revelations and data that could otherwise remain undocumented. 

Documents can be found on the NGT website or the website of the respective bench hearing the case. It is valuable to have information about the name of the Judge, Petitioner or Date of Registration when looking for the documents, it makes finding the exact case documents easier. 

In the course of writing this report, the author found out the value of sand being extracted from the upstream of Prakasam Barrage, Krishna District reported by the Pollution Control Board as part of the proceedings of Anumolu Gandhi vs. State of Andhra Pradesh. Which, when compared with the reported mineral revenue of 2018-19 by the Department of Mines and Geology for Krishna District points to a gap. ^[18]

Concluding remarks

The Present Landscape of Sand Deficit and its Impact on Andhra Pradesh

1. The Sand Deficit and Government’s Development Agenda: The push for urban development and economic growth is leading to a high demand for sand. However, this excessive demand is leading to  a deficit in the state despite being endowed with rich riverine systems and river sand aplenty. There are concerns that in an attempt to meet the increasing sand demand, the government may be flouting rules and regulations related to sand mining, leading to environmental and social consequences.
2. De-siltation Activities and their Reality: While de-siltation activities are carried out as part of infrastructure (dams, barrages, etc)  maintenance, there are concerns about the scale and impact of such activities. Critics, such as former power secretary of state EAS Sarma, argue that some de-siltation projects may serve as a cover for sand mining, leading to environmental degradation and displacement of communities residing in and around riverbanks. ^[19]
   
   The Chitale committee, which was constituted in July 2016 by the Ministry of Water Resources River Development and Ganga Rejuvenation to prepare guidelines for desiltation of river Ganga from Bhimgauda (Uttarakhand) to Farakka (West Bengal), found in their report that “De-siltation per se, has no relation with ecology and/or environmental flow in the river. At best, de-siltation, if carried out properly, would improve hydraulic performance of the river, and thereby, may contribute towards betterment of ecology. Generally, de-siltation works do more harm to ecology and environment flow, which has compelled Hon’ble Supreme Court and National Green Tribunal to pronounce judgment making environment impact assessment and clearance mandatory for sand mining / de-siltation works.”  ^[20]
3. Party Politics and its Impact on Sand Management: The issue of sand management has become politically charged. Gaps and lack of transparency when it comes to revenue could translate into competitive advantage for one party over others. This could further complicate effective policy implementation and exacerbate the challenges associated with the sand deficit.
4. JP Venture’s Unpaid Bills: Sand contractors in Andhra Pradesh have expressed their anger towards the State government due to the accumulation of unpaid bills. The contractors, who have been supplying sand for the past two years through JP Ventures Limited, staged a protest at the APMDC building in Amaravati in March of this year. They demanded immediate payment of their bills, warning that they might resort to extreme measures, including suicide, if the government failed to respond.The contractors accused JP Ventures of withholding payments, creating financial difficulties for both the government and themselves. The company’s financial results from 2023 also mention this gap. ^[21][22]

The complex landscape of sand deficit in Andhra Pradesh demands a holistic approach from the government and policymakers especially in the run up to 2024 as the new capital’s furnishing becomes more pertinent. Balancing rapid development with sustainable sand management practices is crucial to ensure the protection of valuable resources, environmental conservation, and the well-being of communities dependent on the land.

It is essential for the state to prioritize the long-term benefits of sustainable sand management over short-term gains to safeguard its future prosperity. 

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Mehuli Das is a Political Science student at the University of Hyderabad, interested in knowledge dissemination mechanisms. She believes in the power of communication, and envisions using writing and visual concepts to empower communities. In an era where knowledge isn’t just power, but also a currency, she is constantly refining her skills to serve as a valuable resource in closing the information gap.

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Mehuli was a student intern with our project India Sand Watch in May-July 2023, working on Data Collection & Analysis and Communication & Design.

India Sand Watch is an open-data project by Veditum & Ooloi Labs, enabling collection, annotation & archiving of data related to sand mining in India. Check the platform to look at the data available on the platform, mapped spatially onto India’s states.

This report has been archived on India Sand Watch and can be found at this link – https://sandwatch.envmonitoring.in/shareLink/guidelines_6586ad8772e1b0000b5afb44_v2

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