PANJIM: Expressing dissatisfaction with the mining loan scheme, the Goa Mining People’s Front has demanded re-structuring of the scheme and urged the government to take over 100 per cent of their loan liabilities through the Economic Development Corporation (EDC) by providing them soft interest-free loans.
GMPF, the umbrella organization of truck, barge and mining machinery owners, wants the government to seek Rs 5,000 crore financial package from the central government to settle their loans, pending since October 2012.
Addressing a press conference, GMPF convener advocate Suhaas Naik said that the scheme is of no use for borrowers as the loan amounts are huge and a two-year-long ban on the industry has entirely crippled their finances. “Even if the Goa government provides 35 per cent subsidy on the OTS (one-time settlement) amount, the loanees are not in a position to repay 65 percent of the loan amount. It’s now two years since this people have no business and no earnings. From where will they have money to repay their loans?” he questioned. He said that the livelihood of people is currently on government doles of Rs 12,000 per month, provided to truckers and the unemployed. Naik also questioned the delay in starting of mining.
“It’s been nearly five months since Supreme Court has lifted the mining ban with certain conditions. Though government is working in the right direction there is a delay,” Naik said.
The GMPF convener pointed out that on September 9, it would be two long years since the state government suspended mining operations. “Despite Supreme Court lifting the ban, the state is yet to withdraw its order. We are in dilemma as to what exactly is the government’s plan,” he said. GMPF raised question that if the Odisha and Karnataka governments can resume mining activities within a month of the Supreme Court order, then why the delay in Goa.
The government on Thursday notified a scheme to subsidize 35 percent of loan settlement amount of borrowers after they take OTS from the respective financial institutions. The catch is the financial institutions are yet to take a call on the OTS.
The scheme has offered a ceiling of Rs 15 lakh for truck owners, Rs 25 lakh for mining machinery owners and Rs 35 lakh for barge owners, as subsidy against the total loan settlement amount, provided the loan was taken before September 30, 2012.
Also, the barge owners said that the scheme will benefit only those barge owners who want to sell the vessel
“There are only seven to eight barge owners, who would be benefiting under the government debt relief scheme, as they have opted to sell their vessel,” All Goa Barge Owners Association (AGBOA) president Atul Jadav said lamenting that “to avail the benefit of the scheme we will have to sell our barges”.
Demanding that the scheme be completely restructured, Jadav pointed out that there are nearly 300 barges with 150 bank accounts and a loan liability of Rs 2 crore (excluding Rs 2 crore interest) since October 2012. “Government subsidy of 35 percent is peanuts. From where are we going to bring the balance 65 percent?” he questioned.
The barge owners said that the scheme will benefit only those who intend to sell their barges and has few takers. “They would like to settle their loans. Sixty five percent they will get from the person to whom they are selling the barges,” he said informing that currently there are seven to eight such barge owners who are ready to avail the benefit.
AGBOA also demanded that the scheme should also be applicable to those mining loan borrowers, who have shifted their vessels, trucks, tippers or machineries outside Goa.
