Loan settlement scheme for MP industries

Bhopal, Apr 28: The one-time loan settlement scheme of the Madhya Pradesh State Industries Development Corporation has been revised to facilitate smooth recovery from different parties under inter-corporate deposit scheme.

The state cabinet presided over by Chief Minister Shivraj Singh Chouhan early this week approved the revised policy, official sources said.

Under the revised policy, an inter-corporate account holder may go for the settlement by paying the outstanding dues with interest rate of one to 10 percent within the repayment period, which may range from 15 days to 30 months as per the prescribed conditions.

For resettlement, a minimum 10 percent of the amount would have to be paid within 10 days of consent and for payment of the remainining amount, the defaulter would deposit with the Corporation post-dated cheques for monthly instalments with interest. Besides, individual guarantee, corporate guarantee and collateral security of the floater, director or other shareholder would also be taken.

During the tenure of Mr Digvijay Singh as Chief Minister, the MPSIDC has introduced the controversial inter-corporate deposit scheme in 1995 under which ICD transactions were done with different industries, companies and groups. Many beneficiares, including socalled bogus companies, turned defaulters to the tune of several hundred crores of rupees.

Earlier in 2005-06, the corporation introduced one-time settlement policy for smooth recovery and different proposals were taken into consideration. Approval of government was obtained on some proposals not covered under the policy. Settlement was done after considering the proposals received from messrs Western Tobacco, Mahamaya Steels, Dainik Bhaskar and Radius Water Limited, official sources added.

UNI