Chandigarh, February 8: Haryana Cabinet which met under the Chairmanship of Chief Minister, Sh. Manohar Lal here today gave approval to a proposal regarding giving sanction of term loan of Rs.8.92 core in favour of Shahabad Sugar Mills for setting up of 60 KLPD Ethanol plant.

The State Government has approved the setting up of 60 KLPD Ethanol Plant at Shahabad Sugar Mills. HARCO Bank has sanctioned the additional term loan of Rs. 8.92 crore for Shahabad Sugar Mills for setting up of 60 KLPD Ethanol Plant. The government of India has approved the project of ethanol for interest subvention under the scheme for extending financial assistance for enhancement and augmentation of ethanol production. As per the approval, an interest subvention of 5.05 percent per annum will be available for a maximum loan of Rs. 58.92 crore.

Earlier, the HARCO Bank had sanctioned an amount of Rs. 50 crore for this project against State Government guarantee, which has already been availed and utilized. Therefore, to avail the interest subvention benefit, on the maximum loan of Rs. 58.92 crore, State Government has provided a guarantee for an additional term loan of Rs.8.92 crore.