Punjab Cabinet okays extension of OTS Policy-2018 for PSIDC and PFC amid Covid-19
CM says the move was necessary as the industries needed support in these difficult times
Chandigarh: To provide further relief to entrepreneurs amid the COVID-19 pandemic, the Captain Amarinder Singh led Punjab Cabinet on Monday decided to extend the One-Time Settlement of their dues with the Punjab State Industrial Development Corporation (PSIDC) and Punjab Financial Corporation till December 31, 2020.
The Chief Minister said the move was necessary as the industries needed support in these difficult times.
The policy will give the entrepreneurs of promoted and loanee companies one-time opportunity for settlement of their dues with PSIDC and PFC, and will help them recover Rs. 10 crore and Rs. 2 crore, respectively. The move help in releasing the blocked industrial investment and assets and enable the state to put the same to productive use for the revival of the existing industries, which had been shut down after the lockdown in March. It would also help in reducing litigation with respect to loans.
The decision to extend the OTS has been taken in view of the problems being faced by companies and collaborators on account of the lockdown and economic slowdown triggered by the pandemic. They were finding it difficult to pay the instalments due to PSIDC/PFC and had requested for extension in the outer date of repayment. The Union Ministry of Finance has already issued instructions to RBI to give deferment of six months in repayment of loan instalments. However, interest for the period of delay is being recovered.
Besides giving ex-post facto approval for the applications received for OTS of Equity and Loans after the expiry of OTS Policy-2018 on March 5, 2019, the Cabinet has extended the outer date of repayment from two years to two and half years, an official spokesperson said after the meeting.
It has also been decided that Clause IV (i) of other terms and conditions of the Policy, which states that "in case the default continues for more than six months then the OTS shall be cancelled" should be amended to "in case the default continues for more than nine months then the OTS shall be cancelled.” Further, no penal interest will be charged for default of one instalment, as per the Cabinet decision.
In case the Corporation has cancelled the OTS Policy due to default in payment, the OTS shall be revived after receipt of the total amount in arrears, along with overdue interest, with the approval of the Board of Directors. In case any change is required in the OTS Policy subsequently, the same may be made with the approval of the Chief Minister.