Punjab govt extends One Time Settlement scheme

The Punjab government today extended the validity of OTS (One Time Settlement) scheme till August 31,2009, in view of overwhelming response to the (OTS) policy for borrowers of Punjab Financial Corporation (PFC), Punjab State Industrial Development Corporation(PSIDC) and Punjab Agro Industries Corporation (PAIC).

Disclosing this today a spokesman of the Chief Minister's Office said that both these policies were applicable for 90 days from March 2, and had expired on May 31,2009. In terrific response to these policies by the borrowers, 362 units approached PFC and received 15% upfront amount of Rs. 7.55 crore, as provided in the policy from 243 units. The corporation was likely to get Rs. 45 crore from these units as final settlement amount under this policy.

Likewise PSIDC had received Rs. 16.06 crore from 54 borrowers, of which 18 of equity and 36 of loans and the corporation was likely to receive OTS amount to the tune of 110.27 crore.

The spokesman further said that the state government received numerous representation from various chambers and industrial associations that all loanees of PFC and PSIDC could not avail benefit under the policy and therefore the policy should be extended for some more time. Besides, these corporations also could not publicize the OTS policies due to Election Commission of India's model code of conduct in view of Parliamentary Elections and the law and orders problem in month of May 2009 due to which some borrowers could not avail of this scheme.