Ludhiana, October 30
The RBI has released Rs 1,000 crore under the cash credit limit for the Punjab Government for making payment to farmers. The RBI had sanctioned a cash credit limit of Rs 6,300 crore to Punjab for the purchase of paddy. The RBI had released the first instalment of Rs 4,100 crore on October 1 and had withheld the remaining payment of Rs 22,000 crore to square up the amount which the state government is to pay to the banks as interest.

The state government had pleaded with the RBI and the Finance Ministry that the entire amount for the purchase of paddy should be released and the amount of interest on the loan already taken by the state government should be taken from the FCI which had not taken the delivery of the foodgrains procured by the state agencies and which were lying in the godowns in Punjab. The state has got wheat and paddy stocks worth about Rs 17,000 crore lying in the godowns of the state. The annual rate of interest comes to about Rs 1,600 crore.

The state government again approached the RBI and sought the second instalment of Rs 2,200 crore should be released for payment to the farmers. The RBI was delaying it as a result of which the payments to the farmers could not be made after October 15. Huge arrears had built up in the wake of smooth procurement of paddy in Punjab for the first time this year.

Mr P. Ram, Secretary, Food, Punjab Government said today the RBI had released Rs 1,000 crore and out of this a sum of Rs 600 crore was released to the state official agencies yesterday for making payment to the farmers. Another sum of Rs 200 crore was being released to the state Food Supplies Department today for disbursement among the farmers as payment of their paddy sold to the Food Supplies Department.