TEAM HERALD
PANJIM: The general body meeting of the Goa State Co-Operative Bank Ltd on Sunday resolved to urge the government to absorb the entire loan liability of the mining-dependent people lying with the banks.
It also agreed to waive off 100 per cent loan interest of mining borrowers but rejected the government’s One Time Settlement scheme stating that the bank had no powers for compromise settlement as per Reserve Bank of India (RBI) guidelines.
The GSCB, the apex financing agency in the cooperative sector in Goa and Daman and Diu, with total 67 branches, this morning held its 51st annual general body meeting that resolved not to go ahead with the OTS scheme. The meeting was attended by all co-operative bank heads like Goa Urban, Credit societies and other financial institutions that come under it.
Speaking to media persons, GSCB Chairman Ulhas Phaldesai said, “the Co-operative banks have agreed to waive off 100 per cent loan interest of mining borrowers as the value of assets is depreciating”.
Phaldesai, however said, “nationalized banks that have agreed for OTS have the power for compromise settlement. We being in the cooperative sector… the RBI guidelines do not permit us to have OTS”.
He said, “the general body is of the firm opinion that since the government is ready to give 35 per cent subsidy through their scheme, the balance 65 per cent should also be absorbed by government through their financial institution”.
Phaldesai refused to name the financial institution but it is obvious that the Co-operative bank is hinting at the EDC.
The total loan liability of the mining-dependent people is around Rs 67 crore with another Rs 10.5 crore as interest. Herald in its September 26 edition had had said the co-operative sector was willing to waive off 100 per cent interest while refusing to have OTS.
The government, earlier this month notified the debt relief scheme for mining loan borrowers providing subsidy upto 35 per cent on the total loan amount. All banks were directed to submit their OTS proposal by September 30. The scheme is likely to benefit 8000 truck, barge and machinery owners/ operators.
It has been learnt that banks like Syndicate Bank, Corporation Bank, Bank of Maharashtra, Canara Bank and Indian Overseas Bank are ready for OTS and closure of loans subject to approval from their boards.
The mining-dependent people have raised strong objection to the scheme, demanding that government take over the entire loan liability through EDC, as the borrowers are not in financial position to pay off the balance 65 per cent of the settlement amount.
