The correct option is C Decrease in horizontal permeability
The installation of sand drains causes peripheral smear (i.e., wiping action caused by casing or hollow mandrel used to form the well as it is driven down into the soil and then pulled out after it has been filled with sand). For a soil originally having a greater permeability in the horizontal than that in the vertical direction, the smeared zone forms a barrier to the horizontal flow of water, thereby slowing down the process of consolidation considerably.