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Co-op sector would sink if mining halt continues: Parrikar

Last Updated: Tuesday, March 26, 2013 - 19:36

Panaji: Goa Chief Minister Manohar Parrikar today said the cooperative sector in the state would sink if the lull in the mining industry continues for another three months.

The cooperative movement in the state is linked with the mining industry as there is an exposure to the tune of Rs 600-700 crore in various cooperative banks from the mining related businesses, Parrikar told the Legislative Assembly.

"If mining industry remains shut down for next three months, the cooperative sector will sink," he said.

Responding to the discussion on demands for grants, Parrikar said the exposure of trucks and barges is worth Rs 350 crore for the urban societies. "It is a heavy burden," he said.

The government also fears that would be a cascading effect of these exposures on other financial institutions in the state.

"If the cascading effect starts showing up, then rest of the financial institutions would also be affected," Parrikar added.

The Chief Minister said he would meet RBI Governor, who is currently out of the country.

"Something has to be done about these loans. I will meet RBI Governor seeking his intervention," he said.

The mining activity in the state has been on halt since September last year, as per Supreme Court directives.

All the 90-odd mining leases have stopped functioning, affecting around one lakh people dependent on this trade.


First Published: Tuesday, March 26, 2013 - 19:36

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