VIJAYAWADA: Wondering over the clarification given by the Capital Region Development Authority (CRDA) as well as the State government that Amaravati Bonds were issued at an interest rate of 10.32 per cent and not 10.5 per cent, YSRC MLA and Public Accounts Committee Chairman Buggana Rajendranath Reddy sought to know what was the necessity for the government to avail of loan for capital development at such a high interest rate that too by issuing bonds. “It is strange to note that the government is simply saying that it is going to pay only `1,573 crore towards interest for the `2,000 crore raised through Amaravati Bonds. Can the government take such a huge interest burden lightly,” he remarked.
In a press release issued here on Wednesday, he recalled that the government issued an order in February this year with regard to taking loans and clearly mentioned that loans should be availed of from Hudco at an interest rate of below 8 per cent. Contrary to it, the government had now taken the loan at an interest rate of above 10 per cent.
Stating that banks are offering loans at less interest rate than what CRDA is going pay on Amaravati Bonds, he raised doubts that the government is doing all this to benefit some persons. Taking exception to the statement given by Planning Commission Vice-President C Kutumba Rao challenging that the government will take loans at less interest rate if anyone comes forward to lend and also give commission for those recommending in this regard, Buggana found fault with him for making statements on such crucial issues by holding a nominated post.