IPICOL examining the OTS proposal of Odissi Property

The Industrial Promotion and Investment Corporation of Orissa Limited (Ipicol), the state owned industrial promotion body, is examining the One Time Settlement (OTS) proposal of the local hotel unit of Odissi Property Private Limited (OPPL).

The present outstanding dues of IPICOL against the company is estimated to be about Rs 2.58 crore. It includes term loan of Rs 28.53 lakhs, funded interest of Rs 6.5 lakhs and interest of Rs 2.23 crore.

The hotel unit has also applied for OTS to the Orissa State Finnacial Corporation (OSFC). It gave an undertaking in the form of an affidavit that it will withdraw all the cases filed against OSFC unconditionally subject to settlement of loan dues under OTS, 2007.

Odissi Property owes about Rs 5.91 crore to the state owned lender which includes principal amount of Rs 87.85 lakhs and interest of Rs 504.05 lakhs. According to state industry minister Biswabhusan Harichandan, the concerned hotel availed term loans and cyclone loans of Rs 87.85 lakhs from OSFC between 31 March 1992 and 31 March 2001.

The unit was eligible for settlement of its loan account under OTS, 2007 introduced by the corporation. It applied OSFC for OTS on 25 September 2005 and the settlement amount was arrived at Rs 104.46 lakh.

The company will have to pay this amount by 14 July 2009. The corporation has been able to collect Rs 23.31 lakh before the OTS and Rs 31.97lakhs under the OTS, the minister added.

Harichandan today told the state assembly that another government owned body, Industrial Development Corporation (IDCOL) and Phiroja Vinimay Private Limited had signed an agreement for sale of Sonepur Spinning Mill in January 2007.