Barge industry still reeling from effects of mining ban

The ban on mining affected the local economy and the State has still not recovered from its after affects. One of the industries that slumped to a grinding halt was the barging industry. The vessels that transported ore from the mines to the ports numbered around 304.  It was then calculated that the estimated value of all the equipment was Rs 2000 crore odd. The loans taken by the barge owners from private and public sector banking institutions totalled Rs 363 crore. Today that number has reduced to Rs 166 crore and that’s where it is stuck. 

Today the number of barges has reduced and so have the loans. The Rs 166 crore is divided between co-operative banks, EDC and NBFC with Rs 79 crore and nationalised banks with Rs 87 crore.  These loans were taken for 70 barges.        

Barges owners, the Herald spoke to were generally hopeful that some positive step would be initiated by the government before the elections. Sanjiv Naik, a barge owner who still owns a few, said at present some of the barge owners were eligible for waivers on certain loans because of the nature of the financial body they had taken the loan from. 

He said “We have quite a few barges with liabilities in co-operative banks. The nationalised banks had given discounts of around 30% on principle amount and waived entire interest. In the co-operative banks which fall under the purview of   the State Bank, they are not willing to offer a similar 30% discount.” The only nationalised bank that refused to offer a similar scheme. 

Sanjiv believed in the present scheme of things the Goan barge owner was at the rough end of the stick and nothing was being done to sort the issue out.   

Chandrakant Gawas, another barge owner amongst several avatars that he dons has 5 barges of which 4 are operational. The fifth one will hopefully be in operation in a month. Many barge owners’ out standings, Chandrakant believed, had reached double digits and the money would not be recovered by selling the barge and the other assets of the owner. 

Mr Gawas said “I believe on my personal capacity the government ought to increase the limit from 20 million tonnes of iron ore to 30 million. This will ensure everyone would be able to transport ore thus earning revenue.” 

With regards to the waiver he said they had submitted a scheme to the central govt for assistance but it was turned down since they did not qualify. He believed the govt ought to look at the private sector and request them to help the barge owners. The barge owners he insisted were not wilful defaulters and were very keen on paying back the outstanding.  He hoped it would all be sorted out before the elections. 

Another barge owner who did not want to come on record said something good could be expected in the next two months. The government he said was aware of the problem and were keen on sorting it out. A proposal had been prepared and interested ministers were working to ensure the issue was sorted out. A bank officer from a cooperative bank with loans extended to the ministry said they were waiting for instructions if any to proceed further. 

With several interested observers, the actions of everyone will be watched closely. Many will hope the State moves ahead because the pall of gloom had cast a devastating effect on the economy. Watch this space.