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Goa mining debt relief scheme extended until 2027: CM Pramod Sawant
The scheme first notified in September 2014, offered 35% subsidy on loan settlement from financial institutions to assist stakeholders
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Goa chief minister Pramod Sawant on Wednesday announced the approval of extension of ‘debt relief scheme for mining affected borrowers of financial institution’ until 2027.
“There are still some who are yet to apply for the scheme. For their benefit we are granting an extension till 2027,” said CM Sawant.
The scheme first notified in September 2014, offered 35% subsidy on loan settlement from financial institutions to assist stakeholders including truck, machinery, and barge owners who were impacted by the Supreme Court ban on illegal mining in 2012 following the Justice MB Shah report on illegal mining of iron ore and manganese.
The scheme was initially notified for six months but has since been extended repeatedly.
Also Read: HC dismisses plea to declare Goa iron ore mining auction results
As per the scheme, “the borrowers who availed credit facilities, for acquisition of barges, trucks, tippers and mining machinery//equipment operating in the mining sector, from various Financial Institutions (Public, Private, Co-operative Societies, NBFC’s and EDC) have been unable to meet their repayment commitments”, which resulted in non-performing assets for “Banks and Financial Institutions pertaining to the mining loans especially in the co-operative sector”.
As per the scheme the borrower should have availed a loan from any financial institutions on or before 30 September, 2012, for purchase of a truck, tipper, barge or mining machinery for the purpose of mining activities within the state with a limit of one borrower per family.
A maximum limit was set at ₹15 lakh for a truck, ₹20 lakh for machinery and ₹35 lakh for a barge.
