Mumbai, May 8: The Maharashtra cabinet today decided to provide Rs 3 subsidy for every litre of milk to the co-operative and private producers to manufacture milk powder.

An official in the Chief Minister's Office (CMO) gave this information and said the decision was taken to encourage production of milk powder from surplus milk.

The decision will help balance the demand-and-supply of milk and producers can get Minimum Support Price (MSP) of Rs 27 per litre, the official said.

In another decision, the cabinet gave a go-ahead for the promulgation of an ordinance amending the land acquisition provisions in the Maharashtra Highways Act.