Maharashtra Eases Sand Imports to Support Construction

In a significant move aimed at addressing raw material shortages and sustaining construction activity, the Maharashtra government has announced plans to introduce a ‘zero royalty’ policy for sand imported from neighbouring states. Revenue Minister Chandrashekhar Bawankule made the announcement in the Legislative Council, stating that the policy would be unveiled before the conclusion of the ongoing monsoon session.

The proposed policy comes at a time when the construction sector is grappling with recurring sand shortages, which have affected project timelines and increased input costs across several districts in the state. By waiving royalty charges on imported sand, the government seeks to ensure a smoother supply chain for the real-estate and infrastructure sectors.

Responding to a query raised by MLC Parinay Fuke, Bawankule said that the policy could also be extended to districts such as Bhandara, Gondia, Chandrapur and Amravati, depending on local demand and supply conditions. The government is simultaneously exploring the possibility of imposing a transport or transit charge to create funds for repairing rural roads damaged by heavy sand transportation vehicles.

The minister further stated that the administration is working on a proposal to permit sand extraction through suction pumps in the Tapi riverbed, following the framework currently in place in the Konkan region. The move is expected to improve sand availability in areas facing acute shortages while offering an alternative supply mechanism.

The proposed policy reflects the state’s broader effort to strike a balance between infrastructure growth and the availability of essential construction materials. As redevelopment, housing and public infrastructure projects continue to gather pace across Maharashtra, ensuring uninterrupted access to key resources remains central to sustaining the sector’s momentum.

With Maharashtra emerging as one of the country’s largest real-estate markets, policy interventions related to construction inputs are increasingly shaping the pace and economics of development. Industry stakeholders will closely watch the rollout of the ‘zero royalty’ framework and its impact on project costs, supply chains and regional infrastructure.

Key Insights

The proposed ‘zero royalty’ policy marks a strategic attempt by the Maharashtra government to ease sand shortages and support ongoing construction activity. While the exemption on imported sand is expected to benefit developers and infrastructure projects, the government is also considering transport-related charges to address the impact of heavy vehicle movement on rural roads. The proposal to permit suction pump extraction in the Tapi riverbed signals a broader effort to diversify sand sources and strengthen the supply ecosystem across districts facing shortages.

By Sana Khan
Executive Editor, Realty Quarter
Mumbai