PANJIM: The mining loan borrowers Debt Relief Scheme finally seems to have taken off, with the government constituted scrutiny committee on one time settlement (OTS) scheme receiving 30 applications from truck and barge owners, for settlement of their loan liabilities.
Along with State Bank of India, all other nationalised banks, that have disbursed loans to mining stakeholders, have proposed 40 per cent waiver on the principal loan amount for truck owners and 30 percent waiver to barge owners in their OTS scheme. The banks will also waive off 100 per cent loan interest from September 30, 2012, post suspension of mining activities in the State.
The banks that have submitted their proposals include Lokmanya Cooperative Society, Syndicate Bank, Bank of India, IndusInd Bank and Canara Bank.
The five-member scrutiny committee headed by Economic Development Corporation Chief General Manager P D Gawade has received proposals from all nationalized banks in line with SBI, that had agreed to waive of the entire loan interest to all mining loan borrowers and proposed 40 percent waiver on principal loan amount for truck owners and machinery owners while 30 percent waiver to barge owners, provided they agree to the OTS.
A senior official confirmed that following approvals from all banks, nearly 30 applications have been received for settling loan liabilities. “All are being scrutinized. Once the applications are cleared, the Finance department will be asked to release funds to EDC, the nodal agency, that will release subsidy to the financial institutions,” the official said.
As per government Debt Relief Scheme, of the principal amount that truck and barge owners have to pay, 35 percent would be a subsidy given by the government.
As per estimates, there are 8000 truck, barge and machinery loan borrowers with a total loan exposure of Rs 1000 crore. Government has made a provision of Rs 400 crore for the scheme.
