Mining ban and truck owners

In this entire hullabaloo of mining ban in Goa, we all have concentrated only on the companies which have been affected as this has a direct impact on the capital market. But sifting underneath, do we even know the plight of the truck and barge owners?

They – truck and barge owners have been reduced to penury. At least the companies have the muscle and the money to sustain this ban but small truck owners are really on the road to abject poverty. Many have given up their profession completely and some are on the verge of complete collapse. Thus this news of mining resuming in two month time comes like a mannah from the heaven. Most of them are reeling under debt, with many trucks being repossessed by banks. Some 8000 truck and barge owner loans have turned bad and the loan exposure of the mining dependent people was estimated at around Rs.1000 crore.

State Bank of India has been quite kind to these mining ban affected people. It approved a one-time settlement (OTS) scheme for its borrowers which will help settle the long-pending bad debt. SBI has proposed a 30% waiver on principle loan amount to the truck owners and 40% to the barge owners. IT has also offered to waive 100% interest on the loans procured by the truck and barge owners from September 30, 2012, when iron ore exports had stopped following the Supreme Court order vis-a-vis illegal mining in the state. Others too have followed suit – IndusInd Bank, Syndicate Bank, Bank of India, Canara Bank and Lokmanya Cooperative Society.

Yes, sometimes it is essential to look underneath the sheath and see the ones who are worst affected.