Banks agree to go soft on mining dependent loan defaulters

Notwithstanding the heavy non- performing assets being created due to closure of mining industry, all financial institutions in Goa have agreed to be lenient towards mining dependent loan defaulters.
Goa Chief Minister Manohar Parrikar here today chaired a meeting of officials from RBI and other banks which resolved "not to be harsh on the defaulters till March next year".
Parrikar told reporters that the banks have agreed to have a humane approach towards the defaulters considering that the mining business is on standstill in the state.
As per government estimates, the loan liability of people dependent on mining activity is around Rs 1,734 crore, of which Rs 570 crore is NPAs through various banks, including cooperative and urban banks.

The meeting resolved that the banks will not opt for harsh measures like attachment of property or collateral security till March next year.
"The banks might serve notices as a legal requirement but there will no action on those notices," Parrikar said.

The banks have also agreed to work on settlements on a case-to-case basis.
"RBI has said it is within the domain of the banks to work such kind of settlements with the customers and they don't require the permission," the chief minister said.
During the meeting it was suggested that the banks might offer interest waiver or even one-time settlement for customers, depending on individual cases.

The banks are empowered to work out rescheduling of the loans, Parrikar informed.
The state government has also decided to waive road tax for mining related trucks.
Parrikar said the mining companies will also have to ensure that once ore extraction activity resumed in the state, the existing machinery, trucks and barges (ships) will have to be employed in the business, disallowing the new ones.