One-time settlement for entrepreneurs

Loanees in Goa, who have been facing a rough weather in the past couple of years, can can breathe easy.

The state's Economic Development Corporation (EDC) will reintroduce the one-time settlement (OTS) scheme by mid-September to settle the loans by entrepreneurs, sources told Business Standard.

If implemented, this will the third instance of EDC providing the OTS scheme to loanees.

First, it occurred in 1999 and then during the BJP rule from 2001 to September 2003.

According to the sources, this time it will be 'a full-proof scheme' with strict guidelines and the board of directors will scrutinise and approve each application.

In September 2003, several applications belonging to influential hoteliers, industrialists and relatives of politicians got the clearance.

That is why OTS scheme is attracting wide attention and, in turn, has become a controversial subject, a senior government officer said.

Of EDC's Rs 182 crore assets, 75 per cent are non-performing. EDC, which is a government's financial and investment arm, has so far received many enquiries regarding the forthcoming OTS scheme, the sources added.

The official said, "The scheme (OTS), which is an instrument of recovery, is basically a compromise settlement between the loanee and the EDC due to loss in business or some other factor. Basically, it is meant to recover the loan amount amicably."

This time the finance department formulated the guidelines after the files were routed through the Comptroller and Auditor General (CAG) of India.

The OTS scheme will be offered to various categories of loanees and even those whose properties were attached might also get a chance.