HYDERABAD: Union Finance Minister Niramala Sitharaman on Tuesday admitted that as the Telangana government did not fix the meters to agriculture motors, the Centre did not permit the state to go in for extra borrowings of 0.5 per cent of GSDP, which is linked to power sector reforms.
Replying to a question during a press conference here on Tuesday, Sitharaman said that all the States fixed meters to agriculture motors and the Centre allowed them to raise additional loans. “Telangana did not fix meters and how it will get permission for extra borrowing? Yet, the TS government is asking about extra loans. How can we exempt the state, which could not fulfil the conditions for raising extra borrowings, i.e., 0.5% of the GSDP,” Sitharaman asked. She, however, hastened to add that fixing meters to agriculture motors was not compulsory.
As the States wanted extra borrowing limit, the Centre wanted them to implement certain reforms, Sitharaman said, recalling the pathetic condition of Discoms.
‘Loans based on reforms’
“States cannot have two options simultaneously. The states could not say that they want extra borrowing limit and they cannot implement the reforms, which are needed for the society,” she said. If the states fix meters to motors, they become eligible for 0.5% extra borrowing, she said.
Referring to Chief Minister K Chandrasekhar Rao’s oft-repeated statement at election meetings that the state lost Rs 25,000 crore in the last five years due to Prime Minister Narendra Modi linking extra borrowings to power sector reforms, Sitharaman said that KCR was taking Modi’s name as he could attract the people easily.
‘No one takes KCR seriously’
“As no one is taking KCR’s words seriously, he is adding Modi’s name in the meetings to draw the attention of the people,” Sitharaman claimed. “It is like adding salt to food. Without salt, the food will be tasteless,” she quipped. Stating that Modi never asked to fix meters to motors, she asked KCR not to drag the PM into the issue.
“As finance minister, I am saying that the Centre never stopped borrowing for any state. When all the states implemented reforms, Telangana did not implement them and is now blaming the PM. That is the drama going on here. These kinds of drama will harm the interests of the state,” she said.
“The KCR government imposed a huge debt burden on two to three generations. Is his family not facing serious corruption charges? Has his daughter not been questioned? Will he answer these questions,” Sitharaman asked.