Goa Govt working out package for borrowers affected by mining ban

The Goa Government is holding discussions with banks to work out a relief package for the borrowers affected by mining ban.

Delivering his customary address at the State Assembly on the first day of the five-day budget session on Monday, Goa Governor Bharat Vir Wanchoo said the banking sector, including cooperative banks, is facing tremendous stress on account of the advances made to various segments of the mining industry turning into non-performing assets.

The Governor said the Centre failed to react in any positive way to the State government’s pleas for financial assistance to mitigate financial crisis faced due to mining ban though it has been the biggest beneficiary of iron ore mining and exports from Goa when mining activity was in full swing.

He hoped that the new government to be formed at the Centre after the ensuing general elections would extend a liberal financial package to compensate for the losses suffered due to the mining ban.

Reviewing the State economy, the Governor said the loss to the State economy from the mining ban is estimated to be around 20 per cent of the State Gross Domestic Product (SGDP) and in absolute terms, it is ₹8,700 crore, which is quite huge for the tiny State. The State exchequer has suffered a direct and indirect revenue loss of around ₹2,000 crore.

The Governor said the government was in the process of formulating a civil aviation policy, which will incentivise the airlines to connect Goa with tier II and tier III cities in order to tap the tourism potential of these places.

The Goa government, he said, is committed to make Goa an ideal investment destination for best in class manufacturing, tourism, entertainment and other service industries including research and knowledge-based industries and has set an ambitious target of creating 50,000 jobs in the next five years, facilitating a new investment of ₹25,000 crore in the State.

Setting up of an investment promotion board with adequate powers to facilitate speedy decisions is in offing.

The Governor promised a “visionary and forward looking investment policy” and said his government was deliberating with experts for creating a financial hub in the State.