Shillong, October 10: The Meghalaya cabinet Wednesday approved a proposal to reduce the price of petrol and diesel by Rs 2.50 a litre, a move that will cost the state Rs 15 crore annually, a top government official said.

"The cabinet is pleased to approve a proposal to introduce a rebate on the price of petrol and diesel by Rs 2.50 per litre with effect from tomorrow (October 11), also in line with the decision of the central government," Deputy Chief Minister Prestone Tynsong told reporters after the cabinet meeting here.

The Centre on October 4 announced a Rs 2.50 per litre cut in petrol and diesel prices after it reduced excise duty by Rs 1.50 a litre. Tynsong said it was a bold decision taken by the state government considering the cut will imply a loss of Rs 15 crore to the states exchequer annually. Excise Duty Cut on Petrol, Diesel to Cost Rs 10,500 Crore, Arun Jaitley Asks States to Reduce VAT on Fuel.

Tynsong, however, said that the state government has instructed revenue generating departments like Excise, Registration, and Taxation, Forest and Mining departments to raise tax collection to mitigate the losses.

He also said that the Union Ministry of Social Justice has sanctioned Rs 300 crore for the construction of a multi-facility stadium on 50 acre land identified in the New Shillong Township for hosting the National Games 2022.

Tynsong said the sports department is working to complete the process of appointing consultant, architect and the national games chief executive officer by November 5 to take the matter forward.

The deputy chief minister also said that the department has identified a 70-acre plot in the same township for the construction of games village, the expenditure for which will be borne by the state government.