HARISH MELVANI: Everything was going on very smoothly, until the voices against illegal mining cropped up which led to the closure of entire industry affecting the economic life of the
people. I had predicted this situation eight years back when rampant illegal mining was going on. However, the power in force at that time was also part of it with nobody wanting to act against these illegalities. When there is a demand there will be supply which will result in exploitation. What was important was to install some controls for the industry.
The effect of it is now for everyone to see. Those who made a fast buck vanished and those left behind are the innocent people.
SUBHASH PHALDESSAI: Being a public representative from a mining area, I have seen people leaving their economic activities and jump into mining business due to the accelerating profit.
People were expecting mining to resume at the earliest and hence most of them did not turn to agriculture or other alternatives. People who had settled abroad came down and invested their
entire savings buying trucks, barges and machinery. They invested their life into mining.
In 2010, on an average, a family used to earn around Rs 40,000 per truck per month, but
as years passed, the profit decreased as more and more people jumped into the business. More trucks, less trips, less earning. People from the mining areas have very high expectations from
the State government. And with BJP too ruling at the Centre we are confident that the Centre and State will come up with some solution.
ULHAS PHALDESSAI: Presently, banks are in a panic situation. We are under pressure from State government not to take harsh measures against the loans while on the other hand the RBI is pressuring us for recovery. In 2005-06, when the iron ore production was limited to 21 million tonnes, hardly few players were involved. Butas the business started booming, especially in 2010-11, people felt buying trucks and barges was a lucrative business and so they ploughed their money to get more and more money.From the financial year 2008-09, the jump in the loan
borrowers almost doubled every year. Banks were happy as they were getting business and the recovery too was easy. Banks advanced loans to truckers without any collateral security while
in case of barges we had taken collateral deposit. But now, the situation is such that the value of trucks, machines and barges has depreciated, so even if we attached these items, we would not be in position to recover even 60 percent for the principle amount.
SUHAS NAIK: Both Congress and BJP are responsible for the crisis. Presently, employment is one of the biggest challenge in the mining areas. Directly or indirectly over one lakh people
were dependent on mining and with closure of the industry their income has stopped.
BJP-government during the Lok Sabha election campaign assured these people that if BJP formed the government at the Centre, the mining issue would be solved immediately. People trusted them and votedthem to power… now they are waiting for the government to deliver.
MELVANI: Banks are now left with a baby and people without any money. The truckers and machinery operators are clueless whether their trucks or machines would be worthy to operate when mining starts.
ULHAS: When mining stopped on September 10, 2012, the State government should have intervened and direct mining companies to take the responsibility and help the affected people. Of the
total revenue of the government, 70 percent went to Centre in the form of royalty and commercial tax and another 20 percent to state. Balance 10 percent was spent on the mining dependents.
SUBHASH: Since the time BJP government took over, it has made best possible efforts to squeeze mining companies and we managed to get money from them in form of stamp duty and dump conversion fees. Government is now in process of quantifying the loot and wants to know who looted the maximum. The loot would be recovered and spent on the welfare of these mining-dependent people. I would suggest that the government instead of waiting to file cases, collect the looted amount and spend it on those affected.
MELVANI: Let us stop the blame game as it will not serve any purpose. Over 1.5 million tonnes of ore are lying at various jetties and sites. The government should sell it and use the money for
the welfare and loan issues of these people. It can also ask EDC to take over the loans and restructure them.
SUBHASH: I would suggest that banks waive off full loan interest and recover the principle amount pending since September 2012. Some compromise solution has to be worked out. Since the value of assets has declined there is also no point in attaching trucks and barges. A mutual understanding is required.
ULHAS: The bank situation is such that it cannot waive off interest. Government has recently given us in writing that now we will have to place it before the Board and after the approval it will go to general body. Once the general body gives it assent, the State will have to approach RBI with a request.
SUHAAS: If the ball lies in the RBI court then why did the government give an assurance to the people before the LS elections? The loan amount is estimated at Rs 1500 crore while government has made a budgetary provision of only Rs 150 crore to make the sector debt free. People have started losing confidence.
BJP government during the Lok Sabha elections assured the mining-hit people that if BJP formed
the government at the Centre, mining issue would be solved immediately.
People trusted them and voted them to power… now they are waiting for the government to deliver
SUHAaS NAIK
From 2008-09, the jump in loan borrowers almost doubled every year. Banks advanced loans to truckers without any collateral security while in case of barges we had taken collateral deposit. But now, the value of trucks, machines and barges have depreciated, so even if we
attached these items, we would not be in position to recover even 60 percent for
the principle amount
ULHAS PHALDESSAI
People from the mining areas have very high expectations from the State government. And with BJP
too ruling at the Centre we are confident that the Centre and State will come up with some solution
SUBHASH PHALDESSAI
Let us stop the blame game as it will not serve any purpose. Over 1.5 million tonnes of
ore is lying at various jetties and sites. The government should sell it and use the money
for the welfare and loan issues of these people
HARISH MELVANI
