TSMDC eyes 2k-crore sand sales
- Early rains spoiled corporation's party, but Malsur, its MD, is confident of achieving the target in FY21
Hyderabad: The Telangana State Mineral Development Corporation (TSMDC) has set an ambitious target of achieving Rs 2,000 crore in total revenues this financial year as the corporation has expanded its sand quarrying operations - its mainstay which accounts for over 98 per cent of its revenues.
"Last fiscal, TSMDC's revenues from sand reached Rs 792 crore. For this financial year, we have set a target to cross Rs 2,000 crore mark in revenues as we are expecting good sales. That's a stiff target, but we are confident of achieving it if Covid pandemic doesn't create hurdles," Dr G Malsur, Vice-Chairman and Managing Director, TSMDC, told The Hans India.
The corporation, which extracted 1.34 crore cubic metres (CBM) of sand during 2019-20, plans to extract around 2 crore CBM in the current fiscal.
To achieve its revenue and production targets, the corporation has drawn up multiple strategies. On the one hand, it is expanding its sand quarrying operations, thereby enhancing production. On the other, the corporation will see to it that every cubic metre of sand that it extracts is accounted for. Thirdly, it will increase sales in the districts.
TSMDC undertakes sand quarrying operations in 19 districts across Telangana. But the major supply is from the Godavari belt which includes the districts of Bhupalpally, Mancherial and Kothagudam. Currently, it has operations at 45 reaches.
"Recently, the corporation was allotted 38 new sand reaches with a cumulative capacity of over one crore cubic metre. These include sand reaches in Kollur area of Mancherial district and Birpur area in Kamareddy district which hold 70 lakh CBM and 40 lakh CBM respectively. Tendering is over for all these reaches and we have started extracting sand from Kollur," Dr Malsur explained.
With the new reaches, total sand available for TSMDC has increased to 3.71 crore CBM. This includes de-siltation of reservoirs, sand bearing areas and patta lands. Of this, 37 lakh CBM is in stock yards, which is ready for dispatch.
Interestingly, Kaleshwaram area comprising Medigadda, Annaram and Kollur is the biggest source of sand now, accounting for 2.25-2.5 crore CBM out of total 3.17 crore cubic metres.
In addition to making more sand available for sale this year, the corporation has strengthened its vigilance activities to reduce leakages. " We are keeping a strict vigilance so that every cubic metre of sand is accounted for and fetches us revenue," he said.
The TSMDC MD also said that though Hyderabad is the main market, sales in the district would also be enhanced as construction activity picked up there as well.
But the corporation started the new financial year this April on a shaky note, with lockdown bringing its operations to a standstill. "Due to the lockdown, there were no sales from March 20 to May 5, which being summer was a peak season for us. Fortunately, sales picked up thereafter and we could generate Rs 266 crore revenues within just 70 days," he said. Sales however slowed down again recently as rainy season had set in early this year. "But we are hopeful of achieving the revenue target despite the slowdown now," he maintained.
However, TSMDC has no plans to increase sand prices. "Sand is priced at Rs 600 per CBM (nearly 1.5 tonne) plus seigniorage tax. We have no plans to increase the price as the government is keen on providing sand at a cheaper cost. We are getting excellence support from the Chief Minister who is handling the Mining and Geology Ministry. He is an inspiration for us," Dr Malsur said.
He also said that there would not be any shortage of sand in the Hyderabad market this year. "Usually, this market experiences shortfall during the rainy season and retail prices go up. But there is no shortfall this year as we have enough stocks," he maintained.
In Hyderabad, TSMDC have three stock yards which mainly cater to small consumers. It is planning to have bigger stock yards to cater to customers who buy in bulk. "We can stock 10,000 CBM per acre. If we want to maintain 10 lakh CBM of sand, we need 100 acres, but in small parcels at different places. As Hyderabad is a big market, we want to have such stock yards at seven to eight locations. We requested GHMC to allocate the land," he said.