TEAM HERALD
teamherald@herald-goa.com
PANJIM: The country has lost $5 billion in foreign exchange owing to the ban on iron ore mining in the state. Had the ore been exported, it would have mitigated the Rupee fall by 25 paise, Chief Minister Manohar Parrikar has claimed.
Briefing media persons after his return from New Delhi, Parrikar said that he apprised the prime minister about the financial situation facing the state. “His body language was quite positive,” Parrikar said when asked to comment on the Prime Minister’s reaction to the all party delegation, meeting with him.
“We gave him an idea of the economic impact of the mining ban. Our revenue has been curtailed by Rs 1500 crore, the impact on the GDP is to the tune of 20%. The Centre has also lost revenue to the tune of Rs 7,000 crore due to 30% export duty and income tax shortfall, which is five times more than the state’s revenue. The country lost $5 billion in foreign exchange crucially at a time when the trade balance is showing increasing deficit,” Parrikar said.
“It would have reduced the Rupee fall by at least 25 paise,” Parrikar said.
Parrikar said their meeting on the mining ban with the PM was on three points — to secure a financial package for the state to tide over the revenue shortfall, to seek a moratorium on the interest for one and a half year on loans as well as a coordinated effort to start legal mining.
“There is Rs 1,500 crore loans in banks that could become Non Performing Assets (NPA), of which Rs 350 crore are in local cooperative banks and cooperative societies. If this is not done most local banks may collapse,” Parrikar said.
Parrikar said that, while the Prime Minister appeared uneasy on the issue of a financial package to the state and asked him to contact the finance minister. He appeared more inclined on the issue of keeping loans on hold as well as on the coordinated efforts to have legal mining restarted.
Parrikar said he would try to meet the finance minister along with the meeting between the planning commission and the state planning board on June 21.
Parrikar also said that meeting with the Union Minister for Environment and Forests could not take place to decide on a strategy to jointly ensure the restarting of mining.
