Written by Intern Rency Gomes || Team Allycaral
Speaking at a function organised by a prominent bank, Chandrakant Gawas, Chair of the GCCI Logistics Committee, urged financial institutions to take a lenient and supportive view of borrowers affected by the prolonged downturn in Goa’s mining sector. Highlighting the gradual revival of mining operations, he stressed the need for banks to rework stressed assets, restructure loans, and consider fresh contracts to aid the sector’s recovery.
Gawas noted that mining plays a significant role in Goa’s economy and that years of halted operations have severely impacted borrowers linked to the sector. With mining activity resuming, he said it was an opportune moment for lenders to revisit stressed accounts and adopt solutions that benefit both borrowers and financial institutions.
According to available data, four mining blocks are currently operational in Goa, with iron ore production expected to cross 10 million tonnes in the current financial year. The mining sector has an estimated ₹5,000 crore worth of loans classified as stressed assets, affecting nearly 1,500 borrowers who continue to face repayment challenges due to the earlier downturn.
He also acknowledged the proactive efforts of Chief Minister Dr Pramod Sawant in supporting mining-affected borrowers. Gawas noted that the Government of Goa has rolled out several relief measures aimed at easing financial distress and reviving livelihoods in mining-dependent regions.
These measures include the extension of the debt relief scheme with a 35 per cent loan subsidy, full waiver of interest, and partial waiver of principal amounts—up to 40 per cent for truck owners and 30 per cent for barge owners. Financial assistance amounting to ₹147.73 crore has been provided to 6,999 truck owners, while ₹20.96 crore has been extended to 2,000 mining-affected workers. Additionally, mining leases are being made operational in phases to enable employment revival by 2026, and District Mineral Foundation (DMF) funds are being utilised for infrastructure development, water supply, and desilting of agricultural land in mining-affected areas.
Emphasising a collaborative approach, Gawas urged banks to avoid coercive recovery measures and instead focus on sustainable solutions. He appealed to lenders to rework stressed assets with flexible repayment terms, restructure loans based on fresh contracts and production forecasts, avoid liquidation of pledged assets where possible, and adopt a lenient outlook aimed at long-term recovery. He also called for greater focus on supporting borrowers in mining-dependent rural areas.
The appeal, he said, is intended to foster cooperation between banks, borrowers, and the government, ensuring that the revival of mining translates into broader economic recovery for Goa.
