Chandigarh, December 23: Haryana Cabinet which met under the chairmanship of Chief Minister, Mr. Manohar Lal here today has accorded approval to provide State Government Guarantee for term loan of Rs. 235.00 crores for setting up new sugar plants and Ethanol plant at Karnal, Panipat and Shahbad Sugar Mills.

The Cabinet has approved the setting up of 5000 TCD/22 hrs, (expandable to 7500 TCD with Sugar refinery along with 28 MW Cogeneration plant at Village Dahar in Panipat, 3500 TCD (expandable to 5000 TCD) Sugar Plant along with 18 MW Cogeneration plant at Karnal Sugar Mills and 60 KLPD Ethanol Plant at Shahabad Sugar Mills.

HARCO Bank has sanctioned the term loan of Rs. 235.00 crore for the three projects. Of the total cost of Rs. 354.71 for Panipat Sugar Mills for setting up of 5000 TCD (expandable to 7500 TCD with Sugar Refinery) alongwith 28 MW Cogeneration plant, term loan of Rs. 100.00 crore at an interest rate of 10.10 percent per annum has been sanctioned by HARCO Bank. Similarly, out of total cost of Rs. 263.08 crore for Karnal Sugar Mills for setting up of 3500 TCD (expandable to 5000 TCD) sugar plant alongwith 18 MW cogeneration, term loan of Rs. 85.00 crore at an interest rate of 10.10 percent per annum has been sanctioned by HARCO Bank while out of the total cost of Rs. 99.00 crore for Shahabad Sugar Mills for setting up of 60 KLPD Ethanol Plant, term loan of Rs.50.00 crore at an interest rate of 10.10 percent per annum has been sanctioned as well.