Chandigarh, Aug 16 (IANS): To promote agriculture and horticulture in the state by boosting the crop diversification programme, the Punjab cabinet, chaired by Chief Minister Amarinder Singh, on Monday approved the merger of Punjab Agro Juices Ltd (PAJL) with the Punjab Agri Export Corp Ltd (PAGREXCO).

The Cabinet approved the proposal of the Agriculture and Farmers' Welfare Department for the merger as per the recommendations of the Board of Directors of PAGREXCO and PAJL and the officers' committee headed by the Chief Secretary.

The merged entity would be called Punjab Agri Export Corp Ltd, an official spokesperson said after the Cabinet meeting, which also authorized the Managing Director, Punjab Agro Industries Corporation Ltd (PAIC), to perform all such acts and deeds which are necessary for the implementation of the merger scheme and to make the merger scheme effective.

The merger would lead to better utilisation of resources of the PAJL with the PAGREXCO, creation of synergy, better economies of scale, expansion of operations, stronger farmer connect with forward and backward linkages, common branding and marketing to have a better consumer outreach, which will ultimately benefit the farmers and the agriculture sector of the state.

As per the merger terms and conditions, the new entity is envisaged as a company, and the entire decision making would be vested in the Board of Directors.

The Chairman of the merged entity will be an eminent horticulturist with experience in agribusiness.

The Board of Directors shall be appointed based their professional competencies from the areas of horticulture, marketing, finance, etc.