In the 2024 Andhra Pradesh assembly elections, exorbitant sand prices played a significant role in the downfall of the YSR Congress party. Upon assuming power in 2019, the YS Jagan government accused the previous TDP regime of illegal sand mining and consequently revoked the existing policy. However, they struggled to establish an effective mechanism to provide affordable sand, as sand supply was managed by private entities.
This decision caused widespread disruption in construction activities across the state, as unchecked sand prices soared beyond the means of ordinary citizens. Daily wage laborers suffered from unemployment as construction projects stalled due to prohibitively high sand costs. Political analysts labeled this move as one of Jagan's major missteps.
Recognizing the urgency of the issue, the new government led by Chandra Babu Naidu swiftly took action to address the crisis. A new policy was implemented starting from July 8th, under which sand is now available free of cost, with buyers only responsible for transportation and seigniorage charges.
This revitalized policy has injected new life into the construction sector in Andhra Pradesh. The reintroduction of free sand has sparked optimism for rapid progress in building activities over the next six months. Furthermore, the continuous availability of sand across all districts promises to provide steady employment for laborers.
Despite claims from the YSRCP that the new policy will result in an annual loss of 750 crores, the reduced sand prices are expected to stimulate the real estate sector significantly, leading to substantial economic activity and increased revenue circulation.