Contrary to popular perceptions, it was not just 2012-13, in which negative growth in mining revenue led to fall in State’s Gross Domestic Product (GDP) and Net Domestic Product (NDP), but negative growth was witnessed in 2011-12, even when mining ban was not in force.
Revenues recorded negative growth of 6.43 percent (GDP) and 10.95 per cent (NDP), in 2012-13, the just released Economic Survey reads.
Although the revenue collection from mining areas has decreased, the economic measures adopted by the state government have negated the impact to some extent, it added. The Economic Survey 2012-13 was tabled on the Floor of the House on Monday.
“The State’s economy has been hit due to halt in mining activity,” the report says. The State GDP at constant (2004-05) prices for the year 2011-12 is estimated at Rs 23096. 82 crore as against Rs 21201.88 crore for the year 2010-11, reflecting a growth rate of 8.94 percent as compared to 10.15 per cent in 2010-11.
“The dropped percentage is attributed to the negative growth rate under mining sector, which is a sub sector under the primary sector, which registered a negative growth of 2.52 percent,” the report states.
The survey, stating that the State economy for the year 2012-13 has been affected due to halt in mining activity, admits that the impact is visible on institutional finance.
The advances made in various financial institutions including banks, as on September 2012, when mining activity stopped, was Rs 11858.64 crore as against the level of Rs 11818.68 crore as on March 2012, which indicated the marginal rise.
But the advances decreased in the quarter ending September 2012 by Rs 97 crore compared to the quarter ending June 2012, the survey reads.
“The decline in the levels of advances is mainly on account of adverse impact of mining activity in the State,” the report concludes.
The survey has also expressed fears that the loans given to mining-related industry such as barge industry may render non-performing assets (NPA), due to stoppage of mining operations. [H]