GUJRAT: Keen interest of the PML-N senior leadership has led to an unprecedented increase in the auction amount of contracts for lifting sand from five blocks along the part of the Chenab bank falling in the district.

The contracts that had earlier been auctioned for Rs25 million for two years had this time reached over Rs350 million for the same period.

A group belonging to the PML-Q had been running the business of lifting sand along the river since 1998 under various companies. It had also done so without fulfilling legal requirements with the alleged connivance of the mines department between 2002 and 2008.

Sand lifting business in Gujrat and its adjoining districts was considered extremely profitable for almost over a decade and the group dealing in it had always resisted moves by other companies attempting to enter it.

This time, some lawmakers from Gujrat district reportedly involved a senior PML-N party leader to ‘snatch’ the contract from the group with a monopoly over it.

Mines dept’s role in lower bids being questioned

Some major investors from Punjab and Khyber Pakhtunkhwa had been asked by PML-N men to bid in the auction held in Gujrat around a week ago. The auction was conducted by the provincial mines department.

Although the desperate and politically motivated bidders could not manage to get the contract from the current dealer, the mines department revenue could increase manifold as five of the total 10 blocks in Gujrat were auctioned for Rs350 million to the same dealer enjoying monopoly for years. There was no bidder for the remaining five blocks, and the mines department would have to auction them again.

The contract of Samman block located very close to Chenab bridge along GT Road, previously auctioned for Rs21 million only, was now sold for Rs204 million due to stiff competition. The Shahbazpur block contract was previously auctioned for Rs1.8m and now for over Rs90 million. Kot Ghulam block contract previously auctioned for Rs1.2m only was now given for Rs51.2m.

Raza Ali Warraich, alias Raza Matta, a PML-N-backed runner-up candidate against PML-Q MPA Moonis Elahi in the last elections was reportedly responsible for manoeuvring matters through some ruling lawmakers and the senior party leadership for attempting to snatch the contract from the PML-Q-backed group.

Matta claimed it was his efforts that had increased chances of revenue generation for the Punjab government.

Sources close to the successful bidders said they would not let the contract slip from their hands as they had so far earned billions from it. They said the group vowed to continue this business even in case of a heavy loss from unprecedented increase in the auction.

A district government official privy to the auction told Dawn there was a massive profit margin in sand lifting business as even fresh parties were ready to grab contracts by submitting huge bids. The government must probe the mines department regarding lower bids previously.

The contractors had decided to increase rates of sand to avoid possible loss, as those in the construction business and other would be at the receiving end due to any increase in the contract amount.

The Chenab river sand is known for its quality in building construction and is priced highly.

Published in Dawn, June 2nd, 2014