Punjab government has released a sum of Rs 71 crore to make payment to cane growers who have been demanding the outstanding arrears from private sugar mills in the state. The amount has been released through banks for making immediate payment unpaid by the owners of six private sugar mills.
The state government had approved a soft loan of Rs 200 crore for private sugar mills on the state guarantee. The total dues towards these private sugar mills amount to Rs 206 crore. After releasing a sum of Rs 71 crore, the balance amount of Rs 135 crore would also be released shortly through banks by furnishing state guarantee.
In order to release the remaining payment to the cane growers without any delay, the state cane commissioner has been directed to hold a joint meeting with the owners of the private sugar mills and the representative of the banks.