'100% subsidising of loans of mining-dependent not possible'

The Goa government has said it would not take over the loans taken by those who are dependent on the mining industry, despite demands from some quarters.
"We have offered a scheme whereby 35 per cent of the one-time loan settlement amount is paid to the borrower. Some of them are demanding that the government should take care of the rest 65 per cent (too).
"Let me make it clear. It is not possible for the government. If they want they can sell their assets like trucks, barges and machinery and pay off loans," Chief Minister Manohar Parrikar told reporters here today.

The state government had on September 3 notified the 35 per cent subsidy scheme. However, the owners of trucks, barges and mining machinery, who were hit hard by Supreme Court-imposed two years long ban on mining, have said it is not enough.
Banks have extended loans of Rs 900 crore to mining-related industries.
Parrikar said the state government officers will meet the bankers next week to finalise one-time settlement of such loans.
Most of the banks would waive interest on the principal amount, he added.
The Reserve Bank of India has given enough powers to banks to enter into compromise settlements, he said, adding that RBI's permission is not needed for this purpose.