PIPDIC to reintroduce compromise settlement scheme

Puducherry, July 11 (UNI) With a view to reducing its Non-performing Assets (NPA) and help the eligible industrial units/borrowers to settle their loan accounts, the Puducherry Industrial Promotion Development and Investment Corporation (PIPDIC) will reintroduce the compromise settlment scheme.

An official release here today said the loan account in all sectors classified as NPA as on March 31 2006, are eligible to avail the benefit under the scheme.

The NPA accounts has been classified into three categories based on the remittance of interest amount by loan accounts as on March 31, 2007.

In the first category, if the interest amount remitted by the unit was more than the principal amount disbursed, the settlment amount payable would be principal outstanding and other expenses plus ten per cent of the interest due as on March 31 2007. In the second category, if the interest remitted by the unit was between 50 per cent to 100 per cent of the principal amount disbursed,the settlment amount payable would be principal outstanding and other expenses plus 25 per cent of the interest due as on March 31, 2007.

In the third category, if the interest amount remitted by the unit was less than 50 per cent of the principal amount disbursed, the settlement amount payable to such cases would be principal outstanding and other expenses plus 50 per cent of interest due as on 31 March, 2007.

To become eligible under the scheme which would be in operation till 31 December this year, the industrial units/borowers would have to pay 30 per cent of the principal outstanding amount on or before 31 August this year and the balance settlement amount has to be paid and the loan account settled on or before 31 December, 2007, the release added.

UNI