HYDERABAD: Deputy Chief Minister Mallu Bhatti Vikramarka on Saturday urged the Centre to restructure the loans raised by various corporations of the state and Special Purpose Vehicles (SPVs) through Off-Budget Borrowings (OBB).
Vikramarka called on Union Finance Minister Nirmala Sitharaman in Delhi and broached the subject of the loans raised by the state government via SPVs through OBB to fund crucial irrigation projects and drinking water schemes.
These loans, totaling Rs 31,795 crore from institutions like the Power Finance Corporation (PFC) and the Rural Electrification Corporation (REC), carry high-interest rates — 10.75% to 11.25%. Vikramarka told Sitharaman that the repayment burden has caused a significant financial strain on the state and requested her support in instructing financial institutions to restructure these loans to align the repayment terms with Telangana’s financial capacity and ensuring sustainable debt management.
Recalling that during 2014-15, an error occurred in allocation of the Centre’s share of centrally sponsored schemes, he requested Sitharaman to release Rs 495.2 crore on correcting the population ratio-based error. He also urged release of pending funds for backward districts in Telangana as per Section 94(2) of the AP Reorganisation Act.
Vikramarka also asked Sitharaman to ensure that AP Power Finance Corporation reimburses Telangana for the excess liability paid. This sum amounts to Rs 1,270 crore. He said that AP owes Telangana Rs 208.24 crore towards the Net Credit Carried Forward (NCCF) by the commercial tax department at the time of bifurcation and asked Sitharaman to instruct AP to transfer the said amount.
He also urged her to direct the AP government to transfer Rs 9.15 crore pertaining to AP Building and Other Construction Workers Welfare Board. Vikramarka also asked her to facilitate a comprehensive settlement of all power-related disputes between AP and Telangana, possibly through mediation, as suggested by the High Court.