After a rap by the Punjab and Haryana high court, the Haryana government has made arrangements for making an outstanding payment of Rs 354 crore to cane growers for sugar cane purchased by three private sugar mills.
These three private sugar mills are Saraswati Sugar Mills Ltd, Yamunanagar, Naraingarh Sugar Mills Ltd and Piccadily Agro Industries Ltd, Bhadson (also known as Bhadson Sugar Mills) in Karnal.
The state government will ensure that cane growers get their payment by June 30, an official spokesperson said.
Chief minister Manohar Lal Khattar said 50% of the pending cane payments will be made by the sugar mills and that the rest would be made by availing interest free loan from the Haryana State Cooperative Bank (HARCO).
The state government would bear interest liability of the mills on this loan.
The government will repay this loan to Haryana State Cooperative Bank out of its first supplementary budget provisions, the chief minister said.
The HC bench of Justice SK Mittal and Justice HS Sidhu had observed that by the time the government made the payments, the farmers would commit suicide.
Referring to the pending amount of three private sugar mills, the chief minister said Saraswati Sugar Mills Ltd has an outstanding amount of Rs 200 crore followed by Rs 92 crore of Naraingarh Sugar Mills Ltd and Rs 62 crore of the Piccadily Agro Industries Ltd, Bhadson.
As per directions of the state government, HARCO Bank has sanctioned a soft loan of Rs 100 crore to Saraswati Sugar Mills Ltd Nagar for making pending cane payments to the cane growers.
Soft loan of Rs 46 crores to Naraingarh Sugar Mills and of Rs 31 crore to Piccadily Agro Industries Ltd, Bhadson would be sanctioned by HARCO bank in due course, the official spokesperson said.
Khattar said the cane commissioner will ensure that the sugar mills clear all the pending payments of cane growers by the stipulated period, the spokesperson added.