Even as the buzz goes around that the Punjab government is considering ?winding up? the public sector Punjab State Industrial Development Corporation (PSIDC), questions are being raised about the crores in oustandings that were doled out to industrial units allegedly owned by close relatives of the political bosses of both Congress and Shiromani Akali Dal.
The government is considering ?winding up? PSIDC, if the minutes of a meeting of the department of industries and commerce (copy with FE) signed on November 16, 2007, chaired by AR Talwar, principal secretary, industry and commerce, Punjab, are any indication. The meeting was attended by G Vajralingam, managing director of Punjab Financial Corporation, SS Rajput, managing director, Punjab State Industrial Export Corporation, VK Janjua, secretary and director, industries and commerce, Rakesh Verma, managing director, Punjab Infotech and Anurag Verma, managing director, PSIDC, and SP Singh, general manager, PSIEC. As per the minutes ??it was decided that Managing Director of PSIDC would work out comprehensive proposal for final winding up its operations in due course??.
Meanwhile, PSIDC employees? union claimed it had documents that show PSIDC had ?obliged? many companies with loans. National Insecticides and Chemicals Limited, an industrial unit owned by Surinder Kairon, son of former Punjab chief minister, Partap Singh Kairon, had taken a loan of Rs 1.71 crore way back in 1986-87. The loan was not returned by the company while the company twice opted for a one-time settlement (OTS). The third OTS was approved by PSIDC in December 2004. The actual amount worked out to Rs 6.09 crore on a loan of Rs 1.71 crore. PSIDC waived off the interest amount and asked the company to deposit the principal amount, which has not been deposited till date, the union said.
Another company, owned by Gurinder Singh Kairon, elder brother of Surinder Singh Kairon, had taken a loan of Rs 3.77 crore in 1983-84. It was allotted a 15-acre plot in Mohali for its steel unit, Harpartap Steels Limited. The company also came out with a public issue but its shares were de-listed long back. Kairon did not set up any industrial unit at Mohali and in 2005 took permission from PSIDC to sell the plot to Globus Projects Private Limited at a hefty premium, the union alleged. Also, PSIDC waived Rs 12.38 crore which had accrued as interest and asked Kairon to deposit the principal amount of Rs 3.77 crore, it was alleged.
Jarnail Singh, general secratary of the PSIDC union said, ??Two companies owned by Rajinder Gupta of Trident Group, namely Abhishek Industries and Trident Alchochem, owe about Rs 60 crore to PSIDC??. Then former minister and MP, Venod Sharma’s company, Piccadilly Sugar, owes Rs 29 crore and Hagenus Agro Tech Limited, a company owned by Babli Brar, daughter of former Punjab CM, HS Brar, owes Rs 8.40 crore to PSIDC.
A company belonging to Akali Dal leader Bhupinder Singh Mann, Kisan Dudh Udyog, owes some crores top PSIDC. The other companies in the list are, Arihant Threads – about Rs 60 crore, Cheema Spintex Rs 59 crore, Bhandari Exports Rs 38 crore, Cepham Milk Specialties Rs 35 crore, Eurocotspin Rs 31.50 crore, Dwarika Dish Spinners Rs 16 crore and BSM Knitfeb Rs 17.50 crore, Northland Sugar Rs 30.50 crore, Alpha Drugs Rs 18.50 crore, Diamond Agro Rs 14 crore, Setia Synthetics Rs 26.50 crore, Rama Industries Rs 13 crore, Harman Milkfoods Rs 19 crore and Milk Specialties Rs 18.50 crore.
Further enquiries show that total investment by PSIDC by way of principal amount was about Rs 440 crore.