Govt okays OTS for ORHDC, IPICOL

Bhubaneswar: The state government on Tuesday decided to provide Rs 162 crore to the Rural Housing & Development Corporation (ORHDC) as a bailout package for repaying its debt from the HUDCO, official sources said.

The decision was taken at a cabinet meeting presided over by Chief Minister Naveen Patnaik here.

"ORHDC had taken loans from different firms including HUDCO immediately after the super-cyclone in December 1999, but failed to repay due to non-recovery of loans from the people," Chief Secretary B K Patnaik said.

Stating that the state owned corporation would get a relief of about Rs 64 crore as one-time settlement (OTS) of its loan, Patnaik said that of Rs 586 crore disbursed by ORHDC, only Rs 186 crore could be recovered.

Replying a question, he said that Rs 300 crore was disbursed through credit link housing schemes, Rs 126 crore to government and PSU employees and Rs 60 crore through the Kalinga Kutir scheme.

"Of the total Rs 350 crore disbursed though credit linked housing scheme and Kalinga Kutir Yojana, only about Rs 3 crore could be recovered," the chief secretary said, adding that recovery of loans from individuals would continue.

The state cabinet also approved another proposal for introducing a one-time settlement scheme in the Industrial Promotion and Investment Corporation of Orissa Limited.

About 90 odd units would be benefited in the one-time settlement scheme, Patnaik said.

Patnaik said there would be no sacrifice of the principal amount given as loan to industrial units. Some 285 medium scale industrial units had taken loan from the IPICOL at different times, he said.