The Reserve Bank of India has authorised a cash-credit limit of Rs 17,523 crore towards the first instalment for procurement of wheat in Punjab. (Representational Image)
The Reserve Bank of India has authorised a cash-credit limit of Rs 17,523 crore towards the first instalment for procurement of wheat in Punjab, a release from the Chief Minister Office's said on Wednesday.
This will allow the government to release payments for farmers which have been stuck since April 1, when the procurement season for wheat began in the state.
The authorisation comes two days after Chief Minister Prakash Singh called met Prime Minister Narendra Modi and asked him to intervene in the matter. Mr Badal thanked PM Modi for getting the impasse resolved.
A major procurement crisis is looming before the Badal government in Punjab. Banks had refused a cash-credit limit of Rs 20,000 crore after the Reserve Bank alleged that stocks worth Rs 12,000 crore were missing from the state godowns.
The opposition however continued to attack the Badal government over the issue. A delegation of Congress legislators marched upto the state Vigilance Department's office and lodged a complaint alleging fraud in the procurement of food grains for the central pool.