Following the go ahead by the Reserve Bank, banks have begun restructuring the loans worth around INR 1,300 crore given to iron ore miners and other stakeholders such as truckers and shipping lines.
The Goa Chamber of Commerce and Industry, which has intermediated the efforts to get the loans restructured, said that the banks have already begun the debt restructuring process.
The chamber said that Canara Bank, which has an exposure of INR 37 crore, has already begun recasting the loan, while Corporation Bank is also in the process of loan recast.
Mr Manguirish Pai Raikar president of GCCI said that "The RBI during a recent meeting of the empowered committee in Goa had told the banks that they had no objections for restructuring the debt of the mining industry if they are based on the prescribed guidelines."
According to a rough estimate, banks have around INR 1,300 crore exposure to the troubled industry. Loan servicing had been hit after mining came to a standstill in the state. There are 22,000 trucks and 400 odd ships in the state transporting ore from different parts of Goa to the ports.