TEAM HERALD
PANJIM: At the end of the third meeting with government, Cooperative banks are firm on their decision not to waive off 100 percent loan interest, following pressure from the Reserve Bank of India (RBI) and the Central government for recovery of Non Performing Asserts (NPAs). The banks have proposed the interest waiver of up to 50 percent on the loan for a period from September 2012 till June 2014.
With the cooperative banks declining to waive off full interest and the nationalized banks yet to take a call on the matter, the State government is in lurch over drafting a scheme for these mining borrowers to make the sector, debt free. If the banks agree on waiver of interest and one-time settlement of the loan, Government intends to shift the liabilities to the Economic Development Corporation which will offer the borrowers soft loan to pay off the main amount to banks.
Chief Minister Manohar Parrikar had, in the last week of June, begun to offset the loans of mining dependents, whose borrowings worth Rs 1700 crore, of which Rs 400 crore are NPAs, would get into a bad debt.
In the third meeting held on Monday, the Cooperative sector banks have again turned down the demand of the government to waive of full loan interest. The meeting has been rescheduled again for Tuesday for final decision.
A senior official attached to the Goa Cooperative Bank said that the bank is ready to provide 50 percent relief in terms of loan interest waiver and partial waiver of principal, as their NPA had crossed over 60 per cent.
“We cannot wait any more now. Government needs to act or we would be forced to take action against the borrowers. We are also under pressure from the RBI,” official said.
EDC Managing Director Satish Bhat said that Monday’s meeting remained inconclusive. He said that unless banks come out with their proposals, government cannot draft any scheme for those who have taken mining loan.
“Currently no such scheme is being drawn up. We are just collecting data from the banks. Every bank will have its own proposal. Will have to wait,” he said.
As on March 2014, of the nearly 214 barge loans (covering around 150 barges) the total principal dues are Rs 340 crore with additional Rs 80 crore interest of which Rs 228 crore have become NPAs. In case of truck loans, there are 4,745 accounts (with over 6,500 trucks) with total outstanding dues of Rs 370.29 crore and another Rs 120 crore interest, of which Rs 165.77 crore have turned NPAs. Another Rs 880 crore (including interest) is the loan liability of those including mining machinery, other mining related machinery and equipment, small shops and hotels and ancillary businesses.
