Ports Minister Michael Lobo on Friday said that the Goa government would not make any compromise on the Mahadayi water diversion issue.
He also said that the state's financial condition was not "precarious", as claimed by MLAs of Goa Forward Party and other opposition parties.
GFP leaders met Governor Satya Pal Malik on Thursday, claiming that financial situation of the state was precarious and also sought his intervention to stop the water of the Mahadayi river from being diverted by Karnataka.
Lobo said on Friday that Chief Minister Pramod Sawant was doing "whatever possible" to ensure that the financial condition of the state was stable.
"In spite of the ban on mining, which has resulted in reduction in tax collection, state government is working on revenue generation," the minister said.
"The state is in difficulty butvarious means are being adopted to see to it that revenue leakages are stopped and additional revenue is collected," he said.
"Every government borrows money. The loans we are repaying were taken during the tenure of Digambar Kamat-led Congress government (2007-2012). We are not borrowing to pay salaries but to create infrastructure in the state," he said.
On the Mahadayi river diversion, Lobo said, "Our government will not make any compromise.
"The letter written by the union government to Karnataka would be withdrawn," he said, referring to the missive by Union environment minister Prakash Javadekar which mentioned that Environment Clearance was not required for one of the water diversion projects on the river in the neighbouring state.
The Supreme Court will allow resumption of mining in the state in response to a review petition filed by the Goa government, he said.
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