Monday, October 22, 2012

Mining crisis: GCCI urges RBI to restructure loans of businessmen

PANAJI, October 22, 2012

The Goa Chamber of Commerce and Industry (GCCI) is in talks with RBI urging restructuring of loans of businessmen from the state who had borrowed money to buy trucks and barges, to ferry ore.

GCCI president Manguirish Pai Raikar told PTI that he has been in discussion with senior RBI officials in this regard in the wake of current crisis in the mining industry.

The mining operations in the state have come to halt after Supreme Court's verdict banning transportation and extraction of ore.

The apex court has asked Centrally Empowered Committee (CEC) to probe the illegalities in iron ore mining sector as pointed out by the Justice M.B. Shah Commission.

"We are hopeful...we would be trying to get some solution for restructuring of loans," said Mr. Raikar adding that GCCI has already sent a written request to the RBI.

The GCCI is trying to work out alternate cargo for the trucks and barges which are left jobless due to mining halt.

Mr. Raikar said Food Corporation of India has already declared Mormugao Port Trust as a hub for export of wheat, which will help trucks and barges to carry the cargo.

"At the same time we are also thinking of alternative measures for bringing in additional cargo and getting barges involved in movement of internal cargo," he added.

The GCCI president said there are no exports of pharma products happening from the MPT as there is no certainty of availability of containers at the port.

"Although there is one container cargo ship docking at MPT, there is no certainty that it will come on a particular day. Pharma companies don't take any risk and instead channelise it through Jawaharlal Nehru Port trust (Mumbai)," Mr. Raikar said.

Keywords: Goa Chamber of Commerce president Manguirish Pai Raikar, Reserve Bank of India, illegal mining, mining crisis, loans to businessman
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