Halt in mining has hit Goa's economy: survey

Although the revenue collection from mining areas has declined, the economic measures adopted by the Goa government have negated the impact to some extent, says the economic survey (ES) on the state.
The ES was tabled on the floor of the House today on the first day of the month-long state Assembly session.
"The state's economy has been hit due to halt in mining activity," the report said.
"Although the revenue collection from mining activity and mining areas has decreased, the realistic economic measures adopted by the state government have negated the impact to some extent," it adds.
The report, under the head 'Public finance', says that the agriculture has been reviving in the mining belt, where farmers had given up their traditional occupation due to increasing dust pollution and sludge being washed coming into their fields.

The advance (loan) levels in various financial institutions including bank in the state as on September 2012, when mining activity stopped, was at Rs 11,858.64 crore as against the level of Rs 11,818.68 crore as on March 2012, which indicated an marginal rise.

But the advances level decreased in the quarter ending September 2012 by Rs 97 crore compared to the quarter ending June 2012, the survey said.
"The decline in the level of advances is mainly on account of adverse impact of mining activity in the state," it said.
The survey has also expressed fear that the loans given to the mining related industry like barge industry could turn into non performing assets (NPA), due to stoppage of iron ore extraction activity.

"The people employed under the barge industry are around 6,000. Around 30,000 people are indirectly employed in this industry through workshops, ports, jetties, trucks, services, offices and others," the survey data showed.
The ES further states that the financial exposure of barge owners to the banks and financial institution is over Rs 500 crore, out of which Rs 150 crore is owed to the Goan cooperative banks.