Punjab State Industrial Development Corporation Ltd. (PSIDC)The Visionary With a Global Outlook

An Overview : 
Punjab State Industrial Development Corporation Ltd. (PSIDC), was established in the year 1966 to promote planned industrial development in the organised sector and to speed up industrialization in the State of Punjab. PSIDC has been engaged in the promotion of large and medium scale projects and is responsible for making major projects happen in the new economic environments.
Broad Objectives
-Promotion of industrial and infrastructure projects in Assisted and Joint Sector.
-Extending of term loan assistance under IDBI/SIDBI Refinance Scheme to projects promoted by private sector.
-Providing of escort services to projects initiated through private sector.
PSIDC since inception has attained phenomenal growth in the industrial sector in the State and at one time was reckoned as one of the foremost State Industrial Development Corporations in India. The Corporation has paid up equity capital of Rs.78.21 crores held entirely by Govt. of Punjab
It is a professionally managed public sector undertaking of the Government of Punjab with Managing Director looking after the day-to-day affairs under overall administrative control of the Board of Directors, Sh. Deva Pampapathi Reddy, IAS as PSIC and Sh.Raminder Singh, IAS is present Managing Director of PSIDC who is having vast and rich experience in different disciplines.
Constitution & Organisation set up
PSIDC is a Company registered under the Companies Act, 1956. As per its Articles of Association, it is required to have minimum 3 Directors and can have maximum 15 Directors excluding nominee Directors of Financial institution and Debenture Directors, if any. It is professionally managed company and is presently having 7 Directors on its Board including Chairman, Vice Chairman, PSIC, Managing Director and Addl. Managing Director. Members of the Board are as follows:- 
List of Board of Directors as on 24.02.2015
Sh.Amrjit Singh Jaggi (Mangi),
Chairman/PSIDC,
H.No. C/2489,
Akali House, Bilaspur Road,
Jagadhri, Distt. Yamuna Nagar

Sh.Rajesh Aggarwal,
Vice Chairman
H.No. 30-A, Raj Bhawan,
Agar Nagar
Ludhiana

Sh.Deva Pampapathi Reddy, IAS
Principal Secretary Industries & Commerce,
Govt. of Punjab
Chandigarh.

Sh.Jaspal Singh, IAS
Director/PSIDC
Directorate of Public Enterprises & Disinvestment
Punjab
Chandigarh (U.T)

Sh. Sukhjit Singh Bains, IAS,
Director/PSIDC,
Managing Director, Punjab Financial Corporation,

Sector -17, Chandigarh

Sh.Raminder Singh, IAS
Managing Director,
Punjab State Industrial Dev. Corpn. Ltd.,
Chandigarh

Sh. Yogesh Kumar Goel,
Addl. Managing Director,
Punjab State Industrial Dev. Corpn. Ltd.,
Chandigarh

The Managing Director who is Chief Executive of the Corporation is assisted by AMD and a team of professionals and supporting staff. The strength of the staff as on 24.02.2015 is 76, consisting of 14 Officers in the Managerial Cadre including MD and AMD and 62 other officials.
PSIDC AS AN INSTITUTIONAL PROMOTER
PSIDC as development institution has played a pivotal role and promoted a number of projects in the public, joint and assisted sector. Till date, three hundred eight (308) projects promoted by the Corporation in various fields of industry like electronics and telecommunications, chemicals, pharmaceuticals, textiles agro-based, engineering and automobiles, have so far gone into production. They involved a total capital outlay of nearly Rs.453.37 crores offering direct employment potential to about 73,591 people in the State. Among companies promoted are Punjab Tractors Ltd., Punjab Alkalies  & Chemicals Ltd., Punjab Chemicals  & Crop Protection Ltd, JCT Electronics Ltd, Ind-Swift Lab Ltd, Winsome Yarns Ltd, Abhishek Industries Ltd (now Trident Ltd), Surya Medicare Ltd (now Nectar Lifesciences Ltd), Vardhman Polytex Ltd, Supreme Yarns Ltd, Rana Polycot Ltd etc.
PSIDC – AS A TERM LENDER
In 1976, PSIDC was designated as the “Second State Level Financial Institution” by the Industrial Development Bank of India (IDBI) under its Refinance Scheme. Till date, PSIDC has extended loans aggregating Rs.676.54 crores to 861 projects.Generally the following norms were considered for financing projects under this scheme:

  • Debt equity – 1 : 1 to 1.5 : 1  
  • Minimum promoter’s contribution – 30% of the cost of the project.
  • Average Debt Services Coverage Ratio (DSCR) – not lower than 1.5.

PSIDC also extended term loan upto Rs.5.00 crores on a fast track under Equipment Refinance Scheme (ERS) of the Industrial Development Bank of India to the existing companies having good past record of performance and sound financial position. Assistance under this Scheme is available for installation of identifiable items of plant and machinery and other equipment for modernization, expansion, balancing, replacement or any other purpose related to improvement in the performance of the activities of the company except for new projects.
PSIDC also offered facility of Direct Subscription for projects promoted by private sector so as to meet a gap, if any, in the promoter’s contribution to the extent of 15% of the equity capital of the company.
Under the scheme, the promoters of the company were required to enter into a buy-back agreement with PSIDC, inter-alia stipulating that they shall purchase and/or arrange to purchase equity shares subscribed by PSIDC in the company in the 5th, 6th and 7th year of commercial production, at a price equivalent to par value plus interest at the rate applicable to term loans and to be calculated from the date of payment for shares less dividend, if any, received by PSIDC in respect of the said shares in the intervening period or the highest market value published by the Indian Stock Exchange(s) where the shares may be listed, on the date of option, whichever is higher.
PSIDC – AS A FACILITATOR
Today’s industrial environment entails structuring of service packages for expeditious realization of a project in the wake of the growing globalization and threats from International Competitors. PSIDC is alive to these concerns and is providing "Escort Service" especially for promotion of industrial ventures in Punjab and has been instrumental in facilitating projects of Godrej-GE (White Goods), Grasim Industries Ltd (Cement), Gujarat Ambuja Cements, ICI (Paints) and HPCL – Laxmi Mittal (Mega project for Grass Root Refinery) and Gas Pipe Line Project by GAIL India Ltd.
PRESENT ACTIVITIES
The aims and objects of the Corporation are wide in scope but presently the Corporation is concentrating on the following main activities:
i)   As an institutional promoter
As a promoter of industry in the State of Punjab where it had invested in the equity in the various Public/Joint/Assisted/Private Sector units, it is making efforts to enforce the purchase of shares/equity by the Private collaborators. In this endeavour it has invoked/is invoking all legal remedies including arbitration for recovery of the amount against buy back of shares by the promoters.
The state Govt. vide Notification No.15/3/09-A5-6/400 dated 02-03-2009 had notified One Time Settlement (OTS) Scheme for equity which was further extended few times and finally upto 16.02.2011. The corporation has recovered Rs.51.91 crores upto 31.03.2013 under OTS. In addition, Punjab Alkalies & Chemicals Ltd., a Public Sector Undertaking company in which the Corporation’s equity stake is 44.26% is being Dis-invested by the Govt. of Punjab through the Directorate of Public Entreprises & Disinvestment.
ii)   As a financial institution
As a financial institutional where the Corporation provided terms loan/Bridge loan and other loans to Industrial units, it is concentrating its efforts to recover these amount from defaulting units.
In this endeavour it has invoked/is invoking legal remedies including taking over the properties U/S 29 of SFC Act, recovery U/S 32G of SFC Act as also invoking Securitinization Act for recovery of the outstanding amounts against  loan from these loanee companies.
The Corporation had also adopted State Govt. Notification No.15/3/09-A5-6/400 dated 02-03-2009, notified by the State Govt. for One Time Settlement (OTS) Scheme for Loans which was further extended few times and finally upto 16.02.2011. The corporation has recovered Rs.87.67 crores  upto 31.03.2013 under OTS towards loans repayments.
iii)    As a facilitator

The Corporation acting as a facilitator for assisting entrepreneur/major groups for setting up project in the State of Punjab has contributed as follows:-

1 Guru Gobind Singh Refinery Project [M/s HPCL-Mittal Energy Ltd.(HMEL)], Bathinda:-
A prestigious project being facilitated by PSIDC is the Petroleum Refinery with a capacity of 9 MMTPA with approximate investment of Rs.18,919 crores (as built) at village Phulokheri, Tehsil Talwandi Saboo, District Bathinda by HMEL, a joint venture of Hindustan Petroleum Corporation Ltd and Mittal Energy Investments Private Ltd. This project is of immense economic importance to the State of Punjab. The refinery project has commenced trial production in August 2011 and has commenced commercial production on 2nd December 2011.
2  GAIL (India) Ltd.-Gas Pipe Line Project:-
Another project for laying of Natural Gas Pipeline alongwith developing and operating optic fibre communication system having an estimated cost of Rs.2100 crores, is being implemented by GAIL (India) Ltd. (A Government of India Undertaking) which will further boost the industrial development of the State of Punjab. Gas Pipeline which includes 583 Kms Dadri-Bawana-Nangal pipeline which will pass through Sangrur, Bathinda and Ludhiana in the State of Punjab. Gas Pipleine has already been laid by GAIL (india) ltd. which was inaugurated by the Hon’ble Prime Minister on 23.03.2012 which will pass through the Districts of Patiala, Fatehgarh Sahib, Ludhiana, Barnala, Moga, Bathinda, Nawanshahar, Hoshiarpur and Rupnagar in the State of Punjab
For further details, kindly contact :
THE PUNJAB STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED (PSIDC)
UDYOG BHAWAN, 
18, HIMALAYA MARG,
 
SECTOR – 17,
 
CHANDIGARH (India)
Telephones EPABX : 91-172-2702881-84
 
Fax:91-172-704145

Email: psidc@rediffmail.com,   psidcltd@yahoo.co.in

In case of any corruption in the department, please contact the State Vigilance Bureau at the Toll Free No. 1800-1800-1000 or visit their website www.vigilancebureaupunjab.org 

 

 

 

 

These Documents are available in PDF format. Please use Acrobat Reader.
(available for free download at )

All Rights Reserved with Department of Industries, Punjab, India
WebSite developed by : Technorite Consultants Pvt. Ltd.