Punjab govt to initiate action against loan defaulting units

Chandigarh, Sep 9 (UNI) The Punjab government would initiate strict action as per law against the defaulters, who had failed to buy back the equity as per terms of the Financial Collaboration Agreement with Punjab State Industrial Development Corporation (PSIDC).

Presiding over meeting of officers of PSIDC, Industries minister Avtar Henry said that PSIDC had been incorporated with a view to promote medium and large-scale industry and with this objective in view, it had made its equity contribution in about 308 companies. He said that 51 companies opted for One Time Settlement (OTS) under the scheme declared by the government in the year 2003-04.

The minister said all these companies initially paid 10 per cent of the OTS amount and most of them are expected to pay the balance amount, which was about Rs 100 crore by June 30. In case the existing collaborators do not buy back the equity as per their agreement with PSIDC, the flow of funds would be stopped and PSIDC would face problems in further promoting industry in the state, he added.

Therefore, unless defaulting collaborators voluntarily come forward to buy back the equity, PSIDC would be left with no other option but take strict action, he added.

Mr Henry also directed the officers of PSIDC to take effective measures to recover the money under its loaning portfolio.

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