With the mining ban the barge industry is on the verge of collapse. With nearly Rs 100 crore loans outstanding with the banks, the barge owners who are without work are receiving notices for recovery of dues from banks. During the year 2012-13 Goa had 323 barges which is now reduced to 128. Many of these barges which cost about Rs 6.5 crore a piece have either been sold to some companies from Gujarat at a throw away price or have been dismantled and sold as scrap.
Herald met with members of the Goa Barge Owners’ Association (GBOA), which has 28 companies as members and have 85 barges with them of which 34 are in a loan with an outstanding of nearly Rs 100 crore with the lending banks.
In a letter to Chief Minister, Manohar Parrikar, dated May 24 this year, the GBOA has mentioned that presently their total loan liability is about Rs 93 crore. The letter said that the nationalised banks in conformity with the Debt Relief Scheme formulated a one-time settlement scheme which facilitated settlement of barge loans in nationalised banks from Rs 263 crore in September 2012 to approximately Rs 23 crore in May 2018 whereas cooperative banks, EDC Ltd and L&T Finance Ltd the loans have only come down from Rs 101 crore in September 2012 to approximately Rs 70 crore in May this year.
President of GBOA, Raymond Desa said, “Our major demand is to freeze the loans. Majority of the unsettled barge loans are presently with the co-operative banks, EDC Ltd and L&T Finance Ltd as these institutions have not offered the one-time settlement schemes in conformity with the Debt Relief Scheme notified by the Government of Goa. Only nationalised banks have done it. Since mining has come to a standstill by order of the Supreme Court on February 7, 2018, we request the chief minister to persuade banks not to take coercive action against our members. We are not willful defaulters and our accounts have become NPA hence we cannot even take loans.”
Vice President of GBOA, Chandrakant Gawas said, “On September 3, 2014 Parrikar government came out with a Debt Relief Scheme with a cap of Rs 35 lakh as maximum for those barge owners who were affected by the mining ban and had loans. This same scheme has been extended till September this year. However, since our loan is over Rs three crore, Rs 35 lakh as relief is too less for our benefit. We have demanded the State government talk to the banks to freeze the loans and ask them not to send us notices. We have also requested the government to ensure that the mining is restored immediately. I request the banks to meet and come up with a solution which benefits all.”
GBOA has also demanded that the taxes by the State government on barges, which is Barge Tax, should be rationalised. This tax is charged even if the barge makes a single trip in three months (quarter). The tax levied on a 2000 tonner barge is approximately Rs 5 lakh per annum. “Since September 2017 till date barges have hardly made 5-6 trips in total which means that the total earning is less than Rs 10 lakh. How can a barge owner afford to pay Barge Tax,” asked Mr Gawas.
GBOA’s plea to the chief minister Manohar Parrikar is that the barge industry be given infrastructure status so that the banks can infuse capital into the barge trade to ensure funds at a lower interest rate. Also, demands have been made to give deemed exports benefits to the barge industry as it not only generates jobs but also helps in bringing in foreign exchange.
Sanjeev Naik, secretary of GBOA was thankful to Chief Minister Parrikar for his Debt Relief Schemes. However, he added that, “one-time settlement schemes should also be adopted by the cooperative banks, EDC Ltd and L&T Finance Ltd and I am sure lot of accounts can be settled through that. We expect the Government of Goa to intervene in this issue so that the members of GBOA who are suffering for last six years will get a level-playing field.”
Executive Committee Member of the GBOA, Shailendra Kumar Tiwari said that there are a lot of problems in the mining industry in Goa for last six to seven years. “We are in bad shape and in disarray. We are young and dynamic and due to our bad luck mining has totally closed in Goa. Now with a burden of heavy loans it is very difficult for us to survive and look after our family. We humbly request the State government to look into our demands with sensitivity at the earliest.”
