EIACP (PC-RP) on Environmental Problems of Mining

EFFECT OF SAND MINING ON GROUNDWATER DEPLETION IN KARNATAKA

AC Hemalatha
Senior Research fellow
Department of Agricultural Economics,
GKVK, UAS, Bangalore-560065
Email: achema@rediffmail.com

MG Chandrakanth
Professor,
Department of Agricultural Economics,
GKVK, UAS, Bangalore –560065
Email: mgchandrakanth@yahoo.com

N Nagaraj
Professor,
Department of Agricultural Economics,
GKVK, UAS, Bangalore –560065
Email: nagarajnareppa@yahoo.com

SUBMITTED FOR ORAL PRESENTATION AT THE V INTERNATIONAL R & D CONFERENCE OF THE CENTRAL BOARD OF IRRIGATION AND POWER, 15-18 FEB 2005, BANGALORE

Synopsis

Rapid urbanization, the major cause for sand demand is responsible for unsustainable extraction of sand from dried river paths. The layers of sand deposits are exploited almost up to the bottom. This in turn, has increased initial and premature failure of irrigation wells in riparian areas. This study is a modest attempt to estimate the negative externalities due to sand mining along Uttara Pinakini river in Gauribidanur, Karnataka, India using field data from Sand mining area (SMA) and Non-sand mining area (NSMA). In SMA (NSMA) proportion of well failure is 0.46 (0.3), groundwater extracted per well 20.67 (32.12) acre inches, negative externality per well Rs. 4189 (Rs. 1328), net return per rupee of groundwater Rs.4.32 (Rs.11.88). In SMA (NSMA), as location of well from sand mining area increased from 30 to 1500 feet negative externality per well reduced from Rs.7080 to Rs.1585 (Rs.1394 to 1462). In Bangalore city, price of sand was Rs. 4200 per truckload of 350 cubic feet; with inelastic demand (η = - 0.88) and transporters earn net return of Rs. 835 per load. It is suggested to impose a Pigouvian tax of Rs. 540 on each sand truck load in order to compensate the farmers for loss incurred due to sand mining at the rate of Rs. 4813 per irrigation well.

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