In a major relief for local industrialists, the Punjab government on Monday announced two special One Time Settlement (OTS) schemes. The Mann cabinet approved two one-time settlement schemes for industrialists so that they could pay their pending dues for industrial plots in focal points. The decision in this regard was taken in a cabinet meeting led by Chief Minister Bhagwant Singh Mann. Addressing the media after the cabinet meeting, State Industry Minister Tarunpreet Singh Sond said that the Aam Aadmi Party (AAP) government is committed to promoting industry in Punjab. He said that the cabinet has approved two OTS schemes for industrialists. Now, the question arises: Who can avail of the Punjab OTS benefit? Below is all you need to know-
Two OTS Schemes passed by Punjab Government
The first scheme is the Land Enhancement Scheme, under which industrialists will have to pay their dues with 8% simple interest. Compounding interest and penalties have been waived in this scheme.
The second scheme is the OTS scheme linked to the principal amount, in which 8% interest will have to be paid. Two help counters will also be set up for the convenience of the people. Both the schemes will remain in force till December 31, and it is expected that at least 4,000 people will benefit from it.
Who is eligible for Punjab OTS Scheme, or who can avail of it?
The scheme will apply to defaulter plot holders whose original allotment was issued on or before January 1, 2020, ensuring that long-pending cases are addressed effectively. As per reports, industrial plots, sheds, and residential plots in Industrial Focal Points developed by Punjab State Industries Export Corporation (PSIEC) across Punjab will be covered under this scheme, making it a broad-based initiative for industrial revival.
Under these two OTS schemes, the government will provide a significant financial relief measure by allowing defaulters to clear dues with a nominal simple interest rate of 8 percent along with a 100 percent waiver of penal interest. Even plot holders whose allotments were cancelled will now have a chance to get them back by paying their dues, giving businesses a second chance to restart and grow.
More on Punjab OTS Scheme
Tarunpreet Singh Sond was quoted saying, "There are 52 focal points spread over 8,000 acres of land in the state, which have 14,000 industrial plots." Giving information about the first OTS scheme, Minister Sond said that plot holders who have not paid their land enhancement fee will not have to pay penal and compound interest on their dues.
The minister said that now they can pay simple interest at the rate of 8 percent to pay their dues under OTS, and their compound and penal interest will also be waived.
Regarding the second OTS scheme, Sond said that the industrialists who were allotted industrial plots but could not pay their principal amount due to some reasons, can now make their payment with 8 per cent simple interest. He said that they do not need to pay compound and penal interest.
How long will this scheme continue?
Regarding the time limit of the scheme, the minister said that both these one-time settlement schemes will continue till December 31 this year. He also requested the industrialists to take advantage of this scheme.