AP pays off 728 Crore of Telangana’s debt

Such is the irony of life, the Cash strapped Andhra Pradesh is paying off Telangana’s debuts to the tune of 728 Crore. There are 18000 Crore central loans taken by the then United State. These loans are to be divided between both the states in population ratio. But the center is yet to complete this exercise even after 13 months of the bifurcation.

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AP is paying 156 Crore every month to service the debt. Out of which 56 Crore belongs to Telangana’s share and so far 732 Crore is paid like that on Telangana’s behalf. The other payments paid on Telangana’s behalf will take the total to 1500 Crore.

AP can not also delay paying this until the debts are shared since these loans were borrowed in the name of Andhra Pradesh and the State still continues to exist in the same manner. So, legally, the State is bound to honour its commitment.