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Centre formally waives Rs 85 billion aid to Punjab

The central government has formally waived a loan of Rs 85 billion given to the Punjab government to meet the challenge of militancy in the border state.

A Punjab government spokesman said that Union Finance Minister Palaniappan Chidambaram yesterday issued an official letter to this effect.

The decision to waive the loan was taken on July 18, 1997 at a meeting between Prime Minister Inder Kumar Gujral and Punjab Chief Minister Parkash Singh Badal.

The prime minister was honoured in Punjab on October 17 for waiving the loan.

UNI

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