Speaking in the Legislative Assembly on the proposed policy, Chief Minister N Chandrababu Naidu said sand has become an essential commodity in present times as it is required for any construction activity.
"However, it's availability is scarce and the over- exploitation of water bodies for sand would have serious impact on environment," he said.
Admitting that the present policy is not fool-proof, Naidu said the government would come out with a new sand policy as soon as possible and it could be approved in the next Cabinet meeting.
State Minister for Mines and Geology Peethala Sujatha made a statement on the issue.
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The policy resulted in a net inflow of Rs 548.57 crore to the government in just one year through sand sales.
"However, certain issues cropped up in implementing the policy," the statement said.
These issues include dilution of feeling of ownership of the community as officers had a major role to play, reduced supply of sand as sand reaches are operational only on a 12-hour shift basis and challenges in installing modern technology like CCTVs, fitting GPS to vehicles and internet connectivity.