Goa announces relief for debt ridden mining-related businesses

The Goa government in its budget today announced a relief scheme for mining-related businesses, which are facing a collective debt burden of Rs 680 crore.
Truck, barge (ship) and machinery owners are reeling under the debt after the mining activity in Goa was stayed in September 2012 by the Supreme Court.
Goa Chief Minister Manohar Parrikar, who tabled the budget in the Assembly, made a provision of Rs 150 crore towards the bad loans (NPAs) of mining-related businesses. The state government intends to have a one-time settlement with the bankers.
"A primary estimate indicates that the liability of this sector is around Rs 680 crore; and will require around Rs 340 crore to work out a reasonable one-time settlement," he said.

"It is my intention to make the payments in the next two to three years," he said, announcing Rs 150 crore in the present budget.
Details will be worked out in consultation with the bankers, financial companies and the members of the House representing areas affected by mining ban.

Parrikar in his budget speech said the mining ban has slowed down the economic growth, as the sector contributed 20 per cent of Gross State Domestic Product (GSDP).
"In 2010-11 and 2011-12 contribution of mining sector to GSDP was close to 20 and 17 per cent respectively, which fell drastically to a low of about 5.50 per cent in 2012-13 and almost to nil in 2013-14," he said.

The state exchequer was deprived of revenue of Rs 2,000 crore over the past 18 months -- direct revenue on mining royalty of around Rs 1,300 crore and indirect revenue of Rs 700 crore on account of dwindled tax collection, he said.
For the current financial year, Parrikar said, the mining sector is expected to contribute Rs 400 crore in revenue through royalty after e-auctioning of iron ore.
The revenue would go up if mining restarts, he said.
Goa government today presented the financial statement with total gross budgetary expenditure of Rs 10,526.44 crore as against Rs 9,446.19 crore in 2013-14.

The estimated expenditure on revenue account is Rs 8,199.84 crore and expenditure on capital account is Rs 1,890.03 crore.