Industrial Development Corporation Ltd. (PSIDC)The Visionary With
a Global Outlook
An Overview :
Punjab State Industrial (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. PSIDC is responsible for making major projects happen in the new economic environments.
-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 is 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 and Addl. Managing Director looking after the day-to-day affairs under overall administrative control of the Board of Directors headed by Mr. Onkar Singh Thapar as Chairman, Mr. Samir Kumar, IAS as Managing Director and Mr. Sukhvinder Singh Gill, PCS as Addl. Managing Director, 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 14 Directors on its Board including Chairman and Managing Director as members of the Board as follows:-
List of Board of Directors
Sardar Onkar Singh Thapar, Chairman PSIDC
S/o Late Sardar Waryam Singh,
530, Shiv Nagar, Jail Road, New Delhi
Sh. Amrit Lal Aggarwal, Vice Chairman PSIDC
30A, "Raj Bhawan", Agar Nagar
Dr.S.S. Channy, IAS,
Principal Secretary Industries & Commerce
Govt. of Punjab, Chandigarh
S. Jaspal Singh, IAS
Directorate of Disinvestment, Punjab
Dr. Arvinder Singh, IAS
Punjab Financial Corporation,
Sh. Sukhjit Singh Bains, IAS,
Industries & Commerce,
Govt. of Punjab, Chandigarh
Sh. Avtar Singh Johal,
House No. 674, Mohalla Tiba Sahib,
Sh. Shivtar Singh Bajwa,
Deep Nagar, Civil Lines,
Sh. Manjit Singh Khalsa,
H. No. 3047, Sector 32A,
Chandigarh Road, Ludhiana
Sh. Charan Jiv Singh Lali
Director / PSIDC
Kothi No. 182, Lajpat Nagar,
Sh. Sandeep Singh Kaura,
H.No.3460, Sector 71,
Sh. Jagtar Singh
Mohalla Lalgarh, Ward No,4,
Ravidass Nagar, Hoshiarpur
Sh. Pardeep Singla
opp. SBOI, Jaitu Mandi,
Sh.Samir Kumar, IAS
Punjab State Industrial Dev. Corpn. Ltd.,
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 13-12-2011 is 89 consisting of 14 Officers in the Managerial Cadre including MD and AMD and 75 other officials.
PSIDC AS AN INSTITUTIONAL PROMOTER
It was during 70s that PSIDC emerged as a prime industrial catalyst by establishing large and medium scale Industrial projects. The 80s witnessed further upsurge of development activities and accomplishment of large industrial ventures involving sophisticated technological collaborations with world renowned corporate.
In the 90s, PSIDC further accelerated the pace of industrial growth by inviting international and Indian companies of stature for promotion of a wide spectrum of industries.
As an institutional promoter, PSIDC promoted 322 projects in various field of industry viz Electronics and Telecommunications, Chemicals, Pharmaceuticals, Textiles, Agro-based, Light Engineering and Automobiles etc. involving equity investment of Rs.453.37 crores approx. offering direct employment to around 73591 persons. PSIDC as an institutional promoter, promoted companies like Punjab Tractors, Punwire, Punjab Alkalies and Chemicals, JCT Electronics, Malwa Cotton Spinning Mills, Max-GB (Now DSM Anti-Infectives India Ltd), ESPL, Punjab Chemicals and Pharmaceuticals, Punjab Wool Combers Ltd. , Swaraj Engines, Stepan Chemicals, Winsome Yarns, Arihant Cotsyn, Alpha Drugs ,S R Industries and companies belonging to Nahar,Trident, Vardhman and Steel Strips Group.
Foreign companies associated with PSIDC includes Ericsson, Sweden; Hitachi, Japan; Mazda Corp., Japan; Mitsubishi, Japan; Oki, Japan; Phillips, Holland; Westinghouse, Electric Corp., U.S.A; Udhe Germany; Kenwood, Japan; Kamatsu, Japan; Nodia-Springs Israel; General Electric, USA ; Harris Corp., USA; Relm Communication, USA.
PSIDC contributed in the equity share capital of the company incorporated for the purpose only after the project was appraised and financed by the financial institutions and/or banks. Till then, all the expenditure incurred by the private promoters in terms of the recommendations of the management committee constituted to monitor the project comprising of equal nominees of the private promoters and PSIDC. Expenses incurred are, however, considered as the part of the project cost at the time of appraisal by the financial institutions.
Promoters of the company are also 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 on expiry of the third, fourth and fifth year from the date of commercial production by the company 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.
(Quotes of GM/Sumitomo Corp. and MD/ Fujitsu alongwith their photographs, Ann – IV and V respectively.)
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 under its Direct Subscription Scheme 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)
The aims and objects of the Corporation are wide in scope but presently the Corporation is concentrating on the following main activities:
i) As a 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.46.00 crores under OTS and further sum of about Rs.4.00 crores is expected to be recovered in due course. 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 Disinvestment.
- 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 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.78.00 crores under OTS and further sum of about Rs.16.00 crores is expected to be recovered in due course
The Corporation acting as a facilitator for assisting entrepreneur/major groups for setting up project in the State of Punjab has contributed as follows:-
iii) As a facilitator
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 Limited and Mittal Energy Investments Private Limited. This project is likely to provide direct and indirect employment to 15,000 persons and has ample scope for further ancillarisation in the State. Some of the downstream units, which are likely to come up, are Low Density Polyethylene, High Density Polyethylene and Polypropylene which will be used in various end-applications in packaging, pipes for irrigation and canal lining etc. 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 of laying of cross country Natural Gas Pipeline alongwith developing and operating optic fibre communication system etc., 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. M/s. GAIL (India) Ltd. with the approval of Ministry of Petroleum & Natural Gas, Govt. of India, has already invited "expression of interest" for taking capacity in 5 sections of Gas Pipe on common carrier basis which includes 583 Kms Dadri-Bawana-Nangal pipeline which will pass through Sangrur, Bathinda and Ludhiana in the State of Punjab. A gas based Power project is also planned at Rupnagar by Punjab State Power Corporation Ltd. (earlier known as PSEB). Out of the total length of 583 Kms of pipeline, 384 kms will be laid in the State of Punjab in Distt. Patiala, Fatehgarh Sahib, Ludhiana, Barnala, Moga, Bathinda, Nawanshahar, Hoshiarpur and Rupnagar. About 80% of the pipeline has been completed and gas is expected to be available in Punjab by June 2012.
FOR FURTHER DETAILS, KINDLY Contact :
THE PUNJAB STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED
18, HIMALAYA MARG,
SECTOR – 17,
Telephones EPABX : 91-172-2702881-84, 2702791
Email: email@example.com, firstname.lastname@example.org