TEAM HERALD
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PANJIM: Restrictions on iron ore mining and the disturbed balance between import and export of minerals has left country’s economy in doldrums and rupee slipping against the dollars, Chief Minister Manohar Parrikar said on Monday.
“This is going to have very bad implications for the country…the petrol and diesel prices are likely to shoot-up,” Parrikar stated.
Speaking to media persons, Parrikar conceded that the state had to go for additional borrowings in the last fiscal (2012-13) due to closure of mining. “Last year, we did go for additional borrowings from the market to the tune of Rs 250-300 crore. But that is due to stoppage of mining activity and also liabilities created by the former Congress government,” he said.
Pointing to the overall situation, Chief Minister said that the iron ore export worth USD 15 billion per year has been affected and now India has become net importer of ore to run the steel mills in the country. He said that the country is also facing loss in terms of coal export to the tune of USD 17 billion.
“The economy of the country is in doldrums because import-export balance of the country is disturbed. Restrictions on iron ore mining can be attributed as major reasons for decline of the economy,” he said.
“Both these (coal and iron ore) amounts to USD 32 billion which contributes for 16 per cent of trade deficit of the country,” the chief minister explained. He was speaking while responding to the question whether government is hopeful of Rs 3000 crore mining package from the Central government.
“I am hopeful that something will come if not entire Rs 3000 crore,” he said adding ‘the Central government itself is facing severe financial crisis’.
Chief Minister, last week met Prime Minister Dr Manmohan Singh and Union Finance Minister P Chidambaram with a demand for a financial package for rehabilitation of the people affected by closure of mining industry in the State.
Meanwhile, Parrikar accused Centre of releasing the funds under additional Central Assistance (ACA) to the state at the fag end of the financial year. “The funds under ACA were sanctioned in December 2012 but they were actually received by the state in March 2013 but still we utilized the amount,” he said.
The planning commission this FY has approved plan expenditure of Rs 4,715 crore as against Rs 4700 crore for 2012-13.
For the current year, Parrikar said that the state will utilize more than 85 per cent of the fund allotted. He said that the Union government, this time, has assured to give the fund well within time so that it can be spent beneficially.
