Punjab approves settlement scheme for defaulter rice millers
Those defaulters choosing to pay back the principal as a lump sum amount would be entitled to go back to milling from the next season, an official spokesperson explained.punjab Updated: Aug 24, 2017 21:59 IST
The Punjab government on Thursday approved a settlement scheme for defaulter rice millers as it looks to recover “significant portion” of Rs 3,500 crore dues on account of undelivered foodgrain.
Under the one-time settlement scheme approved by the state cabinet, defaulter millers would be given the option of paying the outstanding principal amount in one go within 45 days, without having to pay any interest, or to pay in three instalments with 10 per cent interest, an official spokesperson said.
The move is expected to benefit the state exchequer to the tune of Rs 2000-2400 crore, an official spokesperson disclosed after a meeting of the cabinet, chaired by chief minister Captain Amarinder Singh.
It was decided by the cabinet that where interest is paid, it should not be higher than the principal amount in any case.
Those defaulters choosing to pay back the principal as a lump sum amount would be entitled to go back to milling from the next season, the spokesperson explained.
The decision to announce the scheme was taken after detailed deliberations with all stakeholders, including the agencies and the millers, the spokesperson added.
In the case of undelivered rice, the defaulters would have to deposit the cost of the same on the existing Custom Milled Rice rates.
There were several rice mills in the state which failed to deliver their due quota of rice and had outstanding amounts against them, which continued to mount every year on account of compounding interest, he said.
These millers had been declared defaulters by the agencies concerned, along with legal/arbitration proceedings being initiated against them as per policy guidelines, he added.
First Published: Aug 24, 2017 21:59 IST