Punjab govt approves bailout package for sugar mills

The Punjab government today approved a loan of Rs 200 crore and interest subvention scheme for ailing sugar mills to help them clear cane arrears of farmers in the state.
The decision was taken at the state cabinet meeting held under the chairmanship of Punjab Chief Minister Parkash Singh Badal here today.
The state government would arrange Rs 200-crore loan with state guarantee and interest subvention for three-and-a-half years. There would be a two-year moratorium and sugar mills would repay the loan within five years.
This loan would be used exclusively for payment of cane arrears due to farmers, Advisor to Chief Minister on National Affairs and Media Harcharan Bains said.

State cooperative mills have already paid the entire amount for purchase of sugarcane.
In view of the sugar mills where the cost of production was higher than the whole sale price of sugar, the government would be paying about Rs 50 per quintal of sugarcane and the sugar mills would provide Rs 245 per quintal to the cane growers, he said.

The payment of Rs 50 would reduce with the increase in wholesale sugar price in the country.
In view of Housing for all (HFA) Urban Mission/ Pradhan Mantri Aavaas Yojna (PMAY), the Cabinet approved the "Housing for all Policy for the state of Punjab (Urban)" formulated to provide affordable housing to Economically Weaker sections and slum dwellers of the state.

In a bid to provide sand and gravel to the general public at affordable prices, the Cabinet also decided to grant contract of quarries through reverse bidding process of pit head selling price.
This move would enable the state government to sell sand at reduced prices and enhance its supply to consumers besides helping in containing the price of sand/ gravel in the market, he said.