Goa Mining People's Front (GMPF), an umbrella organisation of truck, barge and mining machinery owners, said the scheme is of no use for borrowers as the loan amounts are huge and the two-year-long ban on the industry has entirely crippled their finances.

"Even if Goa government provides 35 per cent subsidy on the OTS amount, the borrowers are not in a position to repay the rest of the amount. The ban on the mining industry will complete two years on September 9. From where will they have money to repay their loans?" asked GMPF convener Suhaas Naik while addressing a press conference here.

Goa government has notified a loan relief scheme for truck, barge and mining machinery owners which aims to subsidise 35 per cent of their loan amount.

The borrowers will have to work out OTS with banks.

Naik said the state government should seek Rs 5,000 crore mining compensation package which can be used to repay these loans.

"The state should take over their liabilities and provide soft loans through the government-run agencies like Economic Development Corporation," he suggested.

The GMPF has also said the state government should expedite resumption of mining activity, which would be the biggest relief for people dependent on this industry.

The Supreme Court in its April order this year had lifted ban on mining.

"The SC had asked the state government to get back to it after assuring that the mining activity starts. Almost five months have passed since the apex court order, but the government has not even formulated a mining policy. The delay is inordinate," Naik said.

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