Chandigarh, Jun 22 (IANS): To provide further relief to entrepreneurs amid the Covid-19 pandemic, the Amarinder Singh-led Punjab Cabinet on Monday decided to extend the one-time settlement of their dues with the Punjab State Industrial Development Corporation (PSIDC) and Punjab Financial Corporation till December 31, 2020.

The Chief Minister said the move was necessary as the industries needed support in these difficult times.

The policy will give the entrepreneurs of promoted and loanee companies one-time opportunity for settlement of their dues with PSIDC and PFC, and will help them recover Rs 10 crore and Rs 2 crore, respectively.

The decision will help releasing the blocked industrial investment and assets and enable the state to put the same to productive use for the revival of the existing industries, which had been shut down after the lockdown in March.

It would also help in reducing litigation with respect to loans.

The decision to extend the one-time settlement was taken in view of the problems being faced by companies and collaborators on account of the lockdown and economic slowdown triggered by the pandemic.

They were finding it difficult to pay the instalments due to PSIDC and PFC and had requested for extension in the outer date of repayment.

The Union Ministry of Finance has already issued instructions to the RBI to give deferment of six months in repayment of loan instalments.

However, interest for the period of delay is being recovered.