OTS Scheme | Gujarat Industrial Investment Corporation Limited
OTS Scheme | Gujarat Industrial Investment Corporation Limited

OTS Scheme

Basic Criteria for OTS

  • To get the maximum possible recovery, Corporation has kept "in centre " the following main criteria.
  • Principal Outstanding Criteria:
  • Corporation must recover minimum Principal outstanding.
  • Minimum Percentage ( % ) yield Criteria:
  • Based on level of sickness of the unit , Whether unit started losses / Registered with BIFR / Closed unit under possession of GIIC etc.
  • Valuation Criteria: The OTS amount is also worked out based on the Valuation of the available security ( Prime and collateral)

Normally OTS amount are worked out and highest among them are considered as OTS amount.

In the year March 2013, Corporation has scrapped all earlier OTS policies and introduced 4 Nos. of OTS Policies namely

Scheme was for companies, which were financed under GS Loan, FS loan, Seed Capital and TS/NES / Land & Shade.

Eligibility Criteria

  • The account of the company with GIIC should be NPA and classified as Doubtful Account.
  • The unit have valid BIFR/GBIFR registration having negative net worth at that time OR the company’s reference should have been pending before AAIFR / High Court against BIFR/AAIFR order OR the company is either closed OR under possession with the Corporation / other lenders under the SARFAESI Act / with Official Liquidator/DRT-Court Commissioner. OR The company has made losses in last three years as appearing in Audited Account and having negative net worth.

Extent of Benefit

  • 100% principal outstanding amount including FITL as on cut off date (after adding back written off principal amount.)
  • 75% net realizable present market value of prime and collateral security.
  • OTS amount should not be less than 6% p.a. rate of interest, compounded quarterly from the date of first disbursement
  • OTS amount considered as highest of above three criteria.

Payment Terms

  • 10 % - Advance along with Application ( before Sanction ltr)
  • 15% - Down payment within 30 days from the date of sanction letter.
  • Balance 75 % In further 6 months by way of equal monthly installments by PDCs (without interest).
  • Any delay in above payments will carry interest @ 12% p.a. and to be calculated on monthly basis on the defaulted amount, if the delay period is accepted and approved by C.M.D. Otherwise, it may be treated as automatic deemed cancellation of OTS.
  • If the unit fails to make down payment or payment of any of the installment, then relief & concessions granted shall stand void and defaulted company will be asked to make entire payment as if relief & concessions are not granted

Applicable to all units financed under all type of loan, which wants to make One Time Settlement at higher interest rate of 14.25% p.a./ 15.00% (quarterly compounded basis) can apply under this scheme, with no limit/cap on its outstanding and in such case, the valuation of security of any kind is not required.

Eligibility Criteria

  • The account of the company with GIIC should be NPA and classified as Doubtful Account and/or written-off in GIIC’s books of accounts.
  • No valuation to be carried out for the any kind of securities offered to the Corporation. So, the criteria of comparison of OTS offer with valuation amount will not be made applicable

Extend Of Benefit

  • 100% principal outstanding amount including FITL as on cut off date (after adding back written off principal amount.
  • OTS amount should not be less than the calculated @ 14.25% p.a. on compounded qtrly basis from the first disbursement.
  • However, in case of company, having made profit/profits in any of the last three year/s , the OTS amount should not be less than the amount calculated @ 15%, compounded quarterly.
  • In case of CDR (Corporate Debt Restructuring) units with consent of more than 60% of secured creditors, the OTS amount should not be less than the present outstanding amount as worked out under CDR ( Highest of above)

Payment Terms

  • 10 % - Advance along with Application ( before Sanction ltr)
  • 15% - Down payment within 30 days from sanction letter.
  • 75 % In further 6 months. ( as per OTS Scheme-2013 –I) . Any delay in above payments will carry interest @ 14.25% or 15.00% p.a. and to be calculated on monthly basis on the defaulted amount, if the delay period approved by C.M.D. Otherwise, it may be treated as automatic deemed cancellation of OTS.
  • If the unit fails to make down payment or payment of any of the installment, then relief & concessions granted shall stand void and defaulted company will be asked to make entire payment as if relief & concessions are not granted

Eligibility Criteria

  • Applicable to those companies, which have not implemented the project due to unfavorable beyond their control and their prime security is already disposed off by the Corp.
  • The account of the company with GIIC should be NPA and classified as Doubtful Account.

Extend Of Benefit

  • 100% principal outstanding amount including FITL.
  • OTS amount will be the outstanding amount, worked out by applying 6% p.a. simple rate of interest on the outstanding amount on the date on which the Loan account starts default (interest) , up to the date of sanction of OTS

Eligibility Criteria

  • The promoter/s of the company where prime and collateral security have been sold off. PG Suit

Extend Of Benefit

  • 100% principal outstanding including FITL.
  • In case of guarantor suits, if the Corporation has taken injunction on the guarantors property, the OTS amount shall be worked out as under.
  • 100% principal outstanding including FITL after adding back written off principal amount Plus 10% of outstanding interest excluding penal interest as on date of final possession of prime security to be recovered.
  • PAYMENT TERMS as per OTS Scheme-2013-I
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