Daijiworld Media Network - Panaji

Panaji, Apr 22: Goa Chief Minister Pramod Sawant on Wednesday announced the extension of the debt relief scheme for mining-affected borrowers till 2027, offering relief to those yet to avail its benefits.

“There are still some who are yet to apply for the scheme. For their benefit we are granting an extension till 2027,” Sawant said.

First notified in September 2014, the scheme offers a 35 per cent subsidy on loan settlements from financial institutions to support stakeholders such as truck, machinery and barge owners affected by the Supreme Court ban on illegal mining in 2012.

The mining ban followed the Justice MB Shah report on illegal iron ore and manganese mining and severely impacted thousands dependent on the sector.

Though originally introduced for six months, the scheme has been extended multiple times over the years.

Under the scheme, borrowers who had availed loans from public and private banks, cooperative institutions, NBFCs and the Economic Development Corporation (EDC) for acquiring trucks, tippers, barges and mining equipment were given assistance after many defaulted on repayments, leading to non-performing assets, particularly in the cooperative sector.

Eligibility under the scheme applies to borrowers who took loans on or before September 30, 2012 for mining-related assets used within Goa, with the benefit restricted to one borrower per family.

The scheme provides a maximum relief of Rs 15 lakh for trucks, Rs 20 lakh for machinery and Rs 35 lakh for barges.

The extension is expected to benefit remaining eligible borrowers in Goa’s mining belt who continue to face financial stress following prolonged disruptions in the sector.