Barge owners owe Rs 350 crores to banks and other institutions
With approximately Rs 350 crores taken as loans by bargeowners, the inability of the owners to pay their loans could lead to problemsin the near future. Of this Rs 100 crores is owed to local co-operative banksmany of whom have over leveraged themselves. Atul Jadhav, President, Goa Bargeowners Association felt that the government would have to intervene to avoid acollapse of the financial system and pay the interest.
With approximately 306 barges in the state owned by 198members of the association and 63 barges owned by exporters, they needed 120trips to break even every year. The present total tonnage in the state was559610. Atul said “You have to remember these barges at the present numberswere built because we exported 54.5 million tons in 2010-2011 which thendropped to below 35 million tons in 2011-12. You have to also remember that 80%of all inland traffic is generated in Goa which then begs the question wherecan we find work in the rest of the country.”
Distress sales he claimed were common now with businessmenfrom Gujarat buying barges worth Rs.4 crores at less than half the amount. Acommittee was set up to study the problems of the industry and somerecommendations were made. It was suggested that the barge tax be scrappedwhich is presently levied at Rs. 200 per ton. If any of the barges are being sold as scrap and the owner has a loan,it has been recommended that the government pay the difference between the loanamount and the amount generated by the sale of the barge as scrap.
Today as per banking legislation all the barges are nonperforming assets, they would like the government to help restructure theloans. In addition an increase in the facilities for inland transport like morejetties were required, he said, which would require a maximum of investment ofRs. 5 crores for each jetty. The transfer of goods from Gujarat to Goa via landcan result in the expenditure of a couple of thousands but via water it couldbe for as little as Rs. 700. The creation of a national inland water system wasof vital importance, he added.
