Pride of Telugu states – Debt burden of Rs 1.66 lakh crores on poor Telugu people! డిసెంబర్ 1, 2015Posted by M Bharath Bhushan in Andhra, Andhrapreneurship, AP Reorganisation Bill, BJP, Congress, Economy, TDP, Telangana, TRS.
Tags: debt, Economic Reforms, LPG, poverty, World Bank
AP, TS to share Rs. 8,000 cr. of inherited debt
M L Melly Maitreyi, The Hindu, December 1, 2015
Sources said the remaining debt of Rs.10,000 crore raised by the united State under externally aided projects would also be distributed soon between the two successor States.
Some of these loans were raised to fund projects like Hyderabad’s Outer Ring Road, Hussain Sagar clean-up and the Krishnapatnam power project.
While there is no dispute that such debts will be assigned to the State in which the particular project is located, other borrowings are rather more ticklish, such as those for development, welfare, irrigation, roads, rural water supply and poverty alleviation.
These would have to be apportioned on the basis of the population ratio.
“We expect the distribution of the remaining inherited debt of Rs.10,000 crore to happen soon,” sources said.
As part of State reorganisation, out of the total debt of Rs.1.66 lakh crore toted up by united Andhra Pradesh, an undisputed chunk of Rs.1.48 lakh crore was shared between the two States on the basis of the population ratio in February this year.
The share of Andhra Pradesh in this was Rs.86,340 crore and that of Telangana Rs.61,710 crore.
After the Centre notified these debt shares, both States have been paying interest on their inheritance.
That still left Rs.18,000 crore in dispute. Of this disputed figure, Rs.8,000 crore has now been resolved by the Centre.