HYDERABAD: The Department of Expenditure of Finance Ministry on Thursday has reportedly directed the Telangana government to pay Rs 2,500 crore to Andhra Pradesh relating to loans for externally aided projects.
As per the AP Reorganisation Act, 2014, all liabilities on account of public debt and public account of the existing state of Andhra Pradesh outstanding immediately before the appointed day shall be apportioned based on population ratio of the successor states. However, Andhra was unwilling to service the public debt that was raised for projects located in Telangana. Hence, the Andhra government reportedly took up the matter with the Centre. The Department of Expenditure of the Finance Ministry has now reportedly directed the Telangana to pay Rs 2,500 crore to AP for the public debt serviced by the AP. With this, AP would get back its amount spent on public debt service in previous years.