Written by:
Subscribe to Oneindia News

Srinagar, Apr 10 (UNI) Jammu and Kashmir State Financial Corporation (SFC) has realized a record amount of Rs 93 crore during the last four years under onetime-settlement scheme from the owners of defunct and sick industrial units.

This information was given to the Minister for Finance, Tariq Hameed Karra, who is also the Chairman of the Corporation, by the Managing Director of the Corporation here today.

Initially introduced in 1997, the onetime-settlement scheme was aimed at extending relief to the borrowers, whose industrial units had suffered during the turmoil or who had migrated from the Valley due to unavoidable circumstances.

The settlement of the loan cases under the scheme is sanctioned by a high-level committee, an official spokesman said.

He said between September 1997 and May 1998, SFC has, under onetime-settlement scheme settled 716 loan cases recovering Rs 11.12 crore from various defaulters.

For the benefit of the borrowers, the Corporation introduced rehabilitation-cum-settlement scheme in June 1998. Under the scheme, 1667 loan cases were rescheduled giving a benefit of Rs 72 crore to the borrowers on interest.

However, in August 1999, the Corporation introduced another amnesty scheme policy for defunct SSI units and hotels. Under the scheme 88 cases were settles waiving off an amount of Rs 37.81 crore. In August 1999 itself, the Corporation launched another scheme named Special Rehabilitation-cum-Settlement Scheme. Seven cases were settled under the scheme involving interest waiver of Rs 1.35 crore.

The Corporation introduced another settlement scheme in December 2001 named Settlement on Merit of the Case. Under the scheme 393 cases were settled involving interest waiver of Rs 182 crore.

He said the onetime-settlement scheme was again operationalised in 2007 following an announcement by the Finance Minister P Chidambaram in his Budget speech and the Corporation settled 95 cases involving an interest waiver of Rs 71 crore.


Please Wait while comments are loading...