The banks also agreed to waive off 100 percent interest on loans from September 30, 2012, after mining operations were suspended in the state.
The five-member scrutiny committee headed by Economic Development Corporation (EDC) Chief General Manager P D Gawade, also recommended that the government write to all other banks to draft their OTS proposals on similar lines.
“SBI proposal is in tune with what government requires in their OTS subsidy scheme,” a senior official confirmed.
SBI in their proposal, while agreeing to a waiver of entire loan interest to all the mining loan borrowers, has proposed 40 per cent waiver on the principal loan amount for truck owners, and machinery owners, while 30 percent waiver has been offered to barge owners, provided they agree to the OTS.
The other banks that have submitted their proposals including the Lokmanya Co-operative Society, Syndicate Bank, Bank of India, Indusind Bank and Canara Bank.
“The proposal will bring major relief to the mining people,” a committee official said.
As per government Debt Relief Scheme to mining loan borrowers from financial institutions, a subsidy of upto 35 per cent on the total loan settlement amount would be provided. So a total of 60 and 70 per cent of the principal amount has to paid back and 35 percent subsidy would be given by government.
Under the scheme government has offered a ceiling of Rs 15 lakh for truck owners, Rs 25 lakh for mining machinery owners and Rs 35 lakh for barge owners, as a subsidy against the total loan settlement amount, provided the loan was taken before September 30, 2012.
According to estimates, there are total 8,000 truck, barge and machinery loan borrowers with total loan exposure of around Rs 1000 crore.