A sum of Rs 71 crore was released to make payment to cane growers who have been demanding payment of outstanding arrears by private sugar mills in Punjab.

"On the direction of Punjab Chief Minister Parkash Singh Badal, a sum of Rs 71 crore has been released through banks for making immediate payment of outstanding sugar cane arrears to the farmers due towards the owners of six private sugar mills in the state," said an official spokesperson.

He said out of Rs 206 crore due towards these private sugar mills, the balance amount of Rs 135 crore would also be released shortly through banks by furnishing state guarantee.

State government had approved a soft loan of Rs 200 crore for private sugar mills on the state guarantee.

He said that Chief Minister has directed the state Cane commissioner to hold a joint meeting with the owners of the private sugar mills and the representative of the banks shortly to ensure that the remaining payment is also released to the cane growers without any delay.