It paid Rs 25 crore to ICICI on December 31, 2002 as full and final settlement of guarantee obligations.
Similarly, another Rs 10 crore was recently paid to other financial institutions. The state is set to clear a further Rs 85 crore by the end of this fiscal.
The state government is negotiating with IFCI, Industrial Development Bank of India (IDBI) and Industrial Investment Bank of India (IIBI) to arrive at an out-of-court settlement on the principal and interest amounts owed to them by defaulting sugar factories and textile mills.
IFCI, IDBI and IIBI have dragged the state to the Debt Recovery Tribunal with regard to over 50 units that defaulted on interest and principal payments. The state government had backed all these loans with an irrevocable guarantee.
