Punjab Cabinet gave its nod to launch One Time Settlement (OTS) Policy 2015 for settlement of dues of Punjab State Industries Development Corporation (PSIDC), Punjab Financial Corporation (PFC), Punjab Agro Industries Corporation (PAIC) and its subsidiary corporations and companies.
Those who opted for previous 2009 policy and became defaulters would also be eligible under the new OTS, said an official spokesman. Under the policy, in equity investment cases, OTS settlement shall be at "amount invested plus simple interest at the rate of 10 per cent plus expenses less already paid".
In loan cases, OTS amount shall be calculated based on outstanding (principal plus interest) amount to be frozen as on date of default plus 10 per cent simple interest (on frozen amount) up to date of option plus expenses less already paid.
In loss assets cases, OTS settlement shall be at outstanding principal amount plus expenses only, he said. Under this policy, besides hundreds of those small scale industrial units, around 70 large and medium scale industrial projects of PSIDC, and around 15 industrial projects of PAIC are likely to be revived and PFC, PSIDC and PAIC were expected to recover to the tune of Rs 50 crore, Rs 200 crore and Rs 25 crore, respectively.
While affording this unique and last opportunity to the entrepreneurs of the state to settle their dues it has also been decided that those financial collaborators/borrowers who do not opt for OTS under the policy, their assets would be transferred to an Asset Reconstruction Company (ARC) or a Financial Institution (FI) as deemed appropriate by the government, he said.
Apart from this, all the particulars/details of such units not opting for OTS under the policy shall be intimated to RBI for notifying them as defaulters and would not be eligible for further funding by any bank or financial institutions, he said.
In order to safeguard the interests of the general public against frauds by the financial establishments, the Cabinet also gave its concurrence to promulgate the Punjab Protection of Interests of Depositors (in Financial Establishments), Ordinance, 2015. The Cabinet also approved the transfer of one acre of land without any cost to the Punjab State Council for Science and Technology (PSCST) to construct its own building in Knowledge City, Sector-81, SAS Nagar (Mohali).
This would ensure better coordination and monitoring for the timely completion of the upcoming Biotechnology Park, which in turn would provide technical know-how and guidance to the biotechnology industries and common facilities in the park, he added.
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