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Monday 8 July 2024

AP Free Sand New Policy 2024

AP Free Sand New Policy 2024 Fixation of rates of sand 2024 Sales & Dispatch Transportation3 Revenue & Expenditure Digital Enablement Remittance of Seigniorage Fee, Limits on Purchase of Sand Objectives Sand Stocks available in existing depots De-siltation of Reservoirs / Tank Beds - Identification AP Mines & Minerals - Sand - Withdrawal of existing sand policies i.e., New Sand Mining Policy 2019 and Upgraded Sand policy 2021 and setting up of Interim Mechanism for supply of sand to the consumers without any revenue to Govt., till formulation of Sand Mining Policy, 2024 for the State of Andhra Pradesh - Orders - Issued.

AP Free Sand New Policy 2024 Mines & Minerals - Sand - Withdrawal of existing sand policies i.e., New Sand Mining Policy 2019 and Upgraded Sand policy 2021 and setting up of Interim Mechanism for supply of sand to the consumers without any revenue to Govt., till formulation of Sand Mining Policy, 2024 for the State of Andhra Pradesh - Orders - Issued.

Mines & Minerals - Sand - Withdrawal of existing sand policies i.e., New Sand Mining Policy 2019 and Upgraded Sand policy 2021 and setting up of Interim Mechanism for supply of sand to the consumers without any revenue to Govt., till formulation of Sand Mining Policy, 2024 for the State of Andhra Pradesh - Orders - Issued.




G.O.MS.No.43  Dated:08.07.2024


In the memo 1st read above, Government have introduced Revised Sand Policy, 2016 making sand available to the public without charging any fee from 02.03.2016.


In the memo 2nd read above, Government have issued instructions to withdraw the Free Sand Policy 2016. In the G.O. 3rd read above, Government have introduced the New Sand Mining Policy, 2019 and in G.Os 4'h to 14th read above, Government have issued necessary consequential orders for implementation of the policy.


Subsequently, in the G.O. 15' read above, Government have upgraded Sand Policy 2021 and vide G.O.s & Memos 16'th to 22nd read above, Government have issued necessary consequential orders for implementation of the policy, including amendments to the Andhra Pradesh Minor Mineral Concession Rules, 1966.


While the matter stood thus, Government conducted a thorough review of the existing sand policy (New Sand Mining Policy 2019 and Upgraded Sand policy 2021) and the status of current sand operations in the State and observed that there is an imminent need to improve it by formulating a comprehensive sand policy, 2024 so that the interests of consumers are protected and environmental and other concerns are addressed properly.


Accordingly, vide single file 29th read above, Commissioner and Director of Mines & Geology, AP., has submitted a proposal with detailed modalities as an Interim Mechanism for Sand Supply till formulation of Sand Policy, 2024 for the State of Andhra Pradesh.


Government, after careful examination of the entire issue, have decided to supply the sand to consumers without charging any revenue share except cost of operations and statutory levies and taxes, duly withdrawing the existing sand policies i.e., New Sand Mining Policy 2019 and Upgraded Sand policy 2021. Accordingly, Govt., in supersession of the orders issued vide G.O.s & Memos 3rd to 22hd read above, hereby set up an Interim Mechanism for Sand Supply till formulation of Sand Policy, 2024 for the State of Andhra Pradesh as detailed hereunder;




Sand is a basic input for the construction sector, which employs a large number of people, directly and indirectly. Unless the cost of sand is kept under reasonable check, there is likelihood of adverse socio­economic consequences of unemployment, loss of wages and impact on investment climate and industrialization process in the State. It is the obligation of the State Government to ensure that sand, which is an essential ingredient of construction activities such as irrigation works, infrastructure projects, capital buildings, etc., is available at reasonable cost to the consumers.


Therefore, it is necessary in the greater public interest, to take measures to ensure availability of affordable sand to the consumers so as to maintain the pace of infrastructure growth and avoid adverse socio­economic consequences.


  1. Making sand available to consumers at affordable rates
  2. Transparency and visibility on the sand operations.
  3. Prevention of any scope for illegal sand excavation & transportation through an effective vigilance & monitoring mechanism
  4. Compliance with all environmental regulations and orders issued by the Hon'ble Supreme Court, Hon'ble High Court and Hon'ble NGT, so as to mitigate the environmental impact of sand excavation.

Salient Features


District Level Sand Committee:

All sand operations at the district level shall be managed & overseen by the District Level Sand Committee (DLSC) comprising of

  1. District Collector: Chairman
  2. Superintendent of Police: Member
  3. Joint Collector: Member
  4. Sub-Collector/ RDO Concerned - Member
  5. District Enforcement Officer (SEB): Member
  6. District Mines & Geology Officer concerned: Member Convener
  7. District Panchayat Officer: Member
  8. Regional Transport Officer: Member
  9. Director, Ground Water Dept.: Member
  10. Executive Engineer, Irrigation/River Conservation: Member
  11. Executive Engineer, Rural Water Supply: Member Environmental Engineer, Andhra Pradesh State Pollution Control Board: Member
  12. Any other invitees as suggested by the Chairman.
Sand Stocks available in existing depots:

  • The DLSC shall immediately takeover the sand stocks available in the depots maintained by the private agencies.
  • The DLSC shall take all necessary actions, as required, for safeguarding and further disposal of the stocks.

De-siltation of Reservoirs I Tank Beds - Identification:

  1. The de-siltation of Major, Medium & Minor Reservoirs and Tanks as defined by the Water Resources Dept., shall be taken up to enhance the storage capacity of the reservoirs and augment Ground Water recharge in Command Areas.
  2. The following authorities shall identify the de-siltation of reservoirs and intimate to the District Level Sand Committee:
  3. Major, Medium, Reservoirs - Chief Engineer
  4. Minor Reservoirs and Tanks - Superintendent Engineer, Water Resources Department of the District.
De-siltation of Reservoirs / Tank Beds - Obtaining Clearances & Operations:
  1. Water Resources Dept., (WRD) being the custodian of the rivers, canals and reservoirs shall prepare the Feasibility Report along with Environment Management Plan for undertaking de-siltation activities shall obtain Consent for Establishment / Consent for Operation from APPCB by submitting the CTE and CTO applications in the Single desk Portal which will be considered at Zonal office Level.
  2. DM&GO shall assist the EE, Water Resources Department in preparation of feasibility report, so as to facilitate in obtaining CTE/ CTO applications from APPCB, along with Environment Management
  3. Water Resources Dept., for de-siltation activities taken up by them in the foreshore areas (water spread area at FTL) of Reservoirs / Barrages/ tanks, shall appoint agencies/ boatsman societies for the purpose and DM&GO, with the help of DLSC, shall appoint boatsman societies for de-siltation activities beyond the foreshore areas of Reservoirs/ Barrages/ tanks in river course taken up by Mines & Geology Dept., strictly in compliance with all applicable acts, rules and directions of MOEF&CC, Hon'ble NGT, Hon'ble HC & Hon'ble SC.
  4. Chief Engineer concerned of the Water Resources Dept shall identify contractors for de-siltation of major reservoirs such as Prakasam & Dhawaleswaram Barrages, duly taking all necessary permissions and approvals from all the stakeholders concerned strictly in compliance with all applicable acts, rules and directions of MOEF&CC, Hon'ble NGT, Hon'ble HC & Hon'ble SC.
  5. The de-silted materials, useful for construction activity shall be handed over to the DLSC for further disposal.
  6. The District Collector shall reimburse the entire cost incurred by the Water Resources Dept., towards obtaining clearances and de-siltation operations from the revenues received from the disposal of sand handed over to DLSC by WRD. strictly in compliance with all applicable acts, rules and directions of MOEF&CC, Hon'ble NGT, Hon'ble HC & Hon'ble SC.
  7. The District Collector shall extend necessary support for obtaining clearances and undertaking de-siltation operations (including identifying agencies required) and supervise the smooth functioning of the entire de-siltation activities in the respective districts. strictly in compliance with all applicable acts, rules and directions of MOEF&CC, Hon'ble NGT, Hon'ble HC & Hon'ble SC.
  8. The DLSC shall dispose the sand taken over from the WRD as per the modalities prescribed by the Govt., from time to time. strictly in compliance with all applicable acts, rules and directions of MOEF&CC, Hon'ble NGT, Hon'ble HC & Hon'ble SC.

 Appointment of Manpower/Other Agencies for Various Activities:

  • The Chairman, DLSC shall appoint VRO/VRAs/ Gram & Ward Sachivalayam officials or any other official, as deemed fit, as stockyard in-charges for each of the sand depots/desiltation points.
  • The stockyard in-charges shall be responsible for smooth functioning of all the activities such as excavation, loading, sales & dispatches, in strict compliance with the sand policy and all applicable acts & rules.
  • The Chairman, DLSC shall also appoint agencies/manpower to undertake various activities viz. loading, ramp maintenance, security

Fixation of rates of sand:

  1. There shall be no revenue share to the Government under this policy. However, the cost of operations, along with statutory levies & taxes shall be charged on the consumers.
  2. The cost of operations shall include the expenditure for activities such as excavation, loading, transportation to sale point, ramp maintenance, administrative expenses etc.
  3. Statutory levies & taxes shall mean Seignorage fee, DMF, MERIT and GST, as applicable.
  4. DLSC shall fix and notify the amount to be charged at each source i.e., depots/de-siltation points, based on the cost of operations along with statutory levies & taxes.
  5. The DLSCs shall be authorized to modify these rates, wherever necessary, taking into consideration the changes in operating costs/ levies & taxes from time to time,

Sales & Dispatch:

  1. The details of all the depots/desiltation points (referred as "stockyard") such as location, available quantity, notified charges shall be displayed in DMG Website ( on a daily basis to inform the public.
  2. The consumers requiring sand shall be required to go to their desired stockyard to purchase sand,
  3. At the stockyard, the stockyard in-charge shall
  4. Collect all relevant details of the consumer such as Aadhaar , Mobile number, Delivery Address, Vehicle Number.
  5. Collect the notified charges through digital mode (i.e., UPI) and issue sale receipt/invoice to the consumer.
  6. Allot sand to the consumers on first-come first-serve basis and oversee the loading of sand into the vehicle.
  7. The dispatch permits shall be issued manually on the secured stationary as an immediate measure.
  8. The stockyard in-charges shall ensure that the stockyards operate only from 6 AM to 6 PM.
  9. They shall further reconcile the sand dispatches made during the day and upload the daily dispatch data on the online portal developed by DMG by 8 PM every day.

The consumers shall make their own transportation arrangements for transporting sand from stockyard to destination.

  1. To facilitate this, the list of transporters operating at various locations shall be provided on the website of DMG.
  2. Transporters shall be able to register themselves on the DMG website, along with relevant details (vehicle details, contact number, area of operation etc.),
  3. DLSC shall notify the maximum transportation charges to be collected, based on vehicle type/capacity etc.
  4. The transportation charges from stockyard to the consumer's destination shall be paid by the consumer directly to the transporter.
  5. DLSC shall ensure water spraying of sand carried in the vehicles and also covering of sand transport vehicles with tarpaulin sheets, to avoid spillage and dust emissions during the transportation.

Revenue & Expenditure:

  1. In each district, a Joint Account of District Collector and District Mines & Geology Officer shall be opened, with online banking facility.
  2. Ail financial transactions related to sand operations, including sand receipts and operating expenses, shall be made through the Joint Account
  3. The receipts from sand supplies shall be used only to meet the expenditure related to sand operations such as cost of approvals, manpower, payments to contractors, administrative and other incidental expenses.
  4. No expenditure, other than those related to sand operations shall be met through the receipts from sand supplies, except with the approval of the Government.
  5. The DLSC of each district shall reconcile the receipts and expenditure incurred on a monthly basis and submit the statements to DMG, who shall consolidate the data of all districts and submit to the State Government.
  6. The DLSC, with assistance of the DMG, shall put in place mechanism to ensure compliance with GST regulations.

Digital Enablement

  1. Availability of sand at stockyards and sand sources shall be digitised to know the comparative availability of sand for better operational management at district level.
  2. All the payments (receipts and expenditure) shall be only through the banking system and no cash transactions shall be permitted.
  3. Sand receipts shall be collected only through digital means, by displaying the QR Code/ UPI ID of the Joint Account at the stockyards.
  4. DMG shall develop a system for issue of online permits at the earliest.
  5. GPS based vehicle tracking shall be mandated to enable tracking of the sand despatches. Towards this, all sand transporting vehicles shall be required to install GPS based Vehicle tracking devices at the
  6. District Collectors shall maintain command-and-control center at the district level to monitor the sand operations with CCTV feeds within the district and handle all the complaints relating to sand issues.
  7. DMG shall maintain the command-and-control center at the State level to monitor the overall sand operations within the State.
Remittance of Seigniorage Fee, DMF & MERIT:

  1. DLSC shall ensure that the statutory levies (Seigniorage Fee, collected for DMF & MERIT) collected from the sand supplies are remitted towards the respective Heads of Account of the consolidated fund of the State Government.
  2. DLSC shall remit Rs. 2 per MT of sand dispatched, towards the DMG current account for maintenance of the command & control room, as well as other IT initiatives related to sand operations.

Limits on Purchase of Sand:

  • To prevent hoarding/ black marketing of sand and ensure availability of sand for larger number of consumers, each consumer shall be permitted to purchase a maximum of 20 MT per day till supplies stabilize.
  • The limits may be revisited and modified by DLSC, based on the demand-supply scenario within the district. Accordingly, DLSC shall notify the modified limits to inform the public by providing wide publicity.
  • DLSC may grant appropriate relaxations for Govt. Works based on the request of concerned Engg. Depts.

Prohibited activities:

  1. The following activities are prohibited:
  2. Stocking of sand more than the requirement for own construction
  3. Re-sale of sand
  4. Transportation of sand to other States.
  5. Sand using for filling purpose or any other purpose, other than building construction.
  6. Any other activity as prescribed by State Govt./DLSC.
  7. Stringent action, including filing of criminal cases/levy of hefty penalties shall be taken on offenders who are indulging in the prohibited activities.
Vigilance & Monitoring

  1. District Level Task Forces (DLTF) should be constituted by the District Collectors with line departments for periodic inspections of all the stockyards and the sand sources to ensure smooth functioning of sand operations and to curb illegal mining/ transportation.
  2. Special Enforcement Bureau (SEB) shall take necessary action to curb illegal mining/transportation, black marketing, hoarding and cross border transportation of sand by constituting revenue division wise teams and also arranging inter-state check posts.
  3. A Divisional Level Vigilance & Monitoring committee with RDO/SC, DSP, Divisional Development Officer, DLPO, DE, Irrigation, AD, Mining and Mandal Level monitoring with Tahsildar/MPDO, Irrigation AE, SI shall be constituted to monitoring of Sand transportation etc.
  4. The Chairman DLSC shall conduct a fortnightly co-ordination meeting with the task forces and SEB on the action taken and minutes of meeting shall be communicated to DMG.

Complaint Redressal Mechanism

  1. DLSC shall setup a complaint redressal mechanism including maintenance of district level toll free numbers, e-mail Ids to redress the complaints made by any citizen/ NO in an effective and time-bound manner.
  2. Similarly, a State-wide toll-free number and email-Id shall be established and maintained by DMG to register any complaints related to illegal sand mining/transportation/hoarding/black marketing activities etc.
  3. control room at District level under JO control and Divisional Level cell under the chairmanship of RDOsiSCs shall be established.

Compliance of Environmental Rules & Regulations:

DLSC shall ensure all the operations shall be in compliance with Sand Policy of Andhra Pradesh, Mines Act 1952, MMDR Act 1957, WALTA Act & Rules, MOEF&CC notifications, Office Memorandums & Guidelines and any other applicable law, rules, Hon'ble SC Orders, Hon'ble High Court & Hon'ble NGT Orders, Government orders, Instructions issued by Government and Department of Mines & Geology from time to time.

Offences and Penalties:

In case of the vehicles engaged in illegal/ un-authorized excavation in the prohibited areas (i.e., within 500 meters from the Ground water structures, Bridges, Dams, Railway lines and cross drainage structures etc.), transportation of sand outside the State and found transporting sand without valid Sand Waybill /invoice shall be penalized as follows;

Vehicle Type

First Time   (In


Second      Time    (In



Up to 10,000/-

Rs.10,001 to


Lorry fitted with up to 10 tires

Up to 25,000/-

Rs. 25,001/ to -


Lorry fitted with above 10 tires

Up to 50,000/-

Rs.50,001/-      to


Machinery; Upto 50,000/-



In case of bullock carts engaged in illegal/ un-authorized hoarding and selling, the penalty besides seiner of the sand shall be levied as follows:-

  1. Any vehicle transporting sand, if found, carrying sand in excess of the quantity specified in Sand transit form /invoice or in excess of quantity permitted by the Transport Dept., penalty shall be levied on such excess quantity @ Rs.2000/- per MT
  2. Whenever any person extracts sand or has extracted sand in the areas other than those notified for lawful excavation, the officers authorized shall assess such quantity of sand and levy and collect@ 2,000/-per ton of sand or Rs.2.00 lakhs, whichever is higher, as penalty
  3. If any stock of sand beyond a person's reasonable requirement is stocked / hoarded / black marketed / sold, it shall be seized by the officer authorized. The person shall be punishable with imprisonment up to 2 years and a fine of Rs.2,00,000/- (Rupees Two Lakhs). DLSC shall take-over the seized sand and arrange to dispose the same, at the rates fixed by DLSC.
  4. Officers authorized to levy, collect penalties and seizure of vehicles from the persons involved in illegal mining / stocking / hoarding / selling / black marketing in the State authorized under these rules are as follows:
  • District Collector (Concerned)
  • Joint Collector (Concerned)
  • Superintendent of Police (Concerned)
  • Additional Superintendent of Police/OSD(Concerned)
  • Sub-Collector/ Revenue Divisional Officer (Concerned)
  • Tahsildar (Concerned) Mandal.
  • Sub-Divisional Police Officer (Concerned)
  • Station House Officer (Concerned)
  • District/Divisional Panchayat Officer(Concerned)
  • District Mines & Geology Officer (Concerned)
  • Any other officer nominated by Dist. Collector (Concerned) /Director of Mines & Geology
  • SHO (Special Enforcement Bureau), concerned
  • Additional Superintendent of Police (Special Enforcement Bureau), concerned.
  • Enforcement Superintendent, Division, (Special Enforcement Bureau), concerned.

  1. The vehicle/machinery, found involved in any violation more than two times, such vehicle/machinery along with sand shall be seized by officers authorized duly following the procedure as under:
  2. Issue show cause notice to the person/owner from whom the vehicle/machinery is seized.
  3. Immediately take steps by preparing seizure report and produce the vehicle/machinery before the Competent Court to enable the person/owner  from whom  the
  4. vehicle/machinery is seized to file an application under Section 451 of Criminal Procedure Code Cr.P.C/Section 497 of newly enacted Bharatiya Nagarik Surakshit Sanhita, 2023/ appropriate section of Law, for release of vehicle/machinery.
  5. In the alternative, the person/owner from whom vehicle/machinery is to be seized shall be permitted to submit explanation to the show cause notice along with an application to the authorized officer seeking release of vehicle/machinery
  6. Upon receipt of explanation to the show cause notice and the application for release of vehicle/machinery, the authorized officer shall consider the application and pass appropriate orders in accordance with law, within a period of two weeks there from, on production of security of 25,000/- in case of tractor;Rs.1,00,000/- in case of vehicle upto 10 tonnes capacity; Rs.1,50,000/- in case of vehicle above 10 tonnes capacity and Rs.2,00,000/- for any machinery, in the form of Demand Draft drawn in favour of the authorized officer along with an affidavit/undertaking to produce the seized vehicle/machinery as and when required.
  7. The fine paid as per the orders of Competent Court; the security furnished as per clause (1v)above shall be deposited in the head of account "0853- 102-81-other receipts" and the original challan shall be sent to the Director of Mines & Geology concerned.

Appeals and Revisions:

  1. Any person aggrieved by an order passed by any officer authorized, other than District Collector may prefer an Appeal before the District Collector within 30 days from the date of receipt of such order
  2. Any person / agency aggrieved by an order passed by the District Collector /Officials of Special Enforcement Bureau (SEB) pertaining to sand matters may prefer a Revision before the State Government from the date of receipt of such order.
  • The stockyard-wise rates, transportation rates, as well as the complaint redressal mechanism notified by the DLSC shall be given wide publicity through banners & fiexies at major centers such as Stockyards, Collectorate, RDO offices, Mandal Offices, Gram & Ward Sachivalayams, Public places, and advertisements in newspapers.
  • Similarly, the above mentioned details shall also be published on the websites of Department of Mines & Geology and the respective districts.

Powers to issue Orders/Clarifications/Guidelines:

  1. The Government shall be the sole Authority to issue clarifications, exemptions, guidelines or relaxation orders from time to time, in implementation of this policy.
  2. Director of Mines and Geology shall issue operational guidelines from time to time for extraction and sale of sand to maintain environmentally sustainable sand mining in the State.
  3. The VC & MD, APMDC shall provide initial financial support to Commissioner & Director, Mines and Geology, AP., to make this Sand Policy operational, subject to reimbursement.
  4. The Commissioner & Director, Mines and Geology, Govt. A.P., shall submit proposals for necessary amendments accordingly to Andhra Pradesh Minor Mineral Concession (APMMC) Rules, 1966.
  5. These orders shall come into force with immediate effect.
  6. The Government may revise the Sand Policy in future as and when required
  7. The Commissioner & Director, Mines and Geology, A.P., and all the concerned officers mentioned in the address entries shall take necessary action accordingly in the matter
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