The Cabinet Committee on Economic Affairs headed by Prime Minister Manmohan Singh gave its final approval to the proposal to provide interest subvention.

Under the proposal the central government will provide an interest subvention up to 12 percent, at a simple rate of interest, for the additional working capital loans to the sugar undertakings, equivalent to last three sugar seasons excise duty, cess and surcharge on sugar, according to an official statement released after the cabinet meeting here.