VIJAYAWADA: TDP spokesperson K Pattabhi Ram has asked the YSRC government to explain why the Centre rejected its plea to allow it to take advances from international banks under roads and rural collectivity projects. Pattabhi said the Department of Economic Affairs (DEA), Government of India, issued a strongly worded counter to AP on January 17. The DEA not only set tough conditions for releasing advances under the externally aided projects but also asked for monthly financial and physical progress reports for all future expenditure, he said.
Speaking to mediapersons on Sunday, the TDP leader said the Centre’s decision would make it difficult for the Jagan Mohan Reddy regime to get even the already sanctioned loans from foreign institutions. The Centre obviously took this harsh measure following the alleged diversion of thousands of crores of advances by the AP Government in the past, he said.
Pattabhi pointed out that DEA Deputy Secretary Dr Prasanna wrote to AP Finance Principal Secretary SS Rawat, asking for accounts for all the advances already made under the externally aided projects so far. These projects were getting finance from World Bank (WB), Asian Infrastructure Bank (AIB), New Development Bank (NDB), etc.
The AP government wrote two letters dated December 16, 2021 and December 21, 2021, requesting the Centre for advances under the NDA and AIB financed projects. In its reply, the DEA asked the AP to give accounts for $70 million already advanced under the AIB financed AP Rural Roads Project, he said.