This approval was given at the state cabinet meeting held under the chairmanship of Parkash Singh Badal, The chief minister of Punjab. The government decided to approve the loan of 200 crore for indisposed sugar mills to support for the eradication of cane arrears of farmers.
The government has made arrangement for the loan with the provision of 5 years time period for repayment of the loan by sugar mills and this loan amount would be used specifically for the payment of cane arrears caused by farmers.
In another consequential decision, the Cabinet gave approval to Punjab State Grain Procurement Corporation to produce scientific allocation infrastructure of recent time in the state with monetary assistance of NABARD.