Andhra Pradesh Goes for 12,000 Crore Loans In Just 10 Weeks

Andhra Pradesh has taken it to the next level in going for loans in the new financial years. The state government has collected around 12,000 Crore loans in just ten weeks. The government is allowed to go for loans of around 20,000 Crore in this fiscal and the limit is likely to be exhausted in August.

From August, the government will have to keep something as collateral to go for loans. Except for Sand and Liquor, there are no revenue-generating avenues for the state government. According to a report by Andhrajyothy, the government is going to mortgage some assets of the government to get loans.

Some assets in Vishakapatnam and the assets of the R&B department across the state are earmarked to the mortgage. The assets in Vishakapatnam are worth 1,600 Crore and the assets of R&B are 5,000 Crore. The government is planning to pool in at least 5,000 Crore from this mortgage.

The issue may land up in court sooner or later as this is a dangerous move that is likely to push Andhra Pradesh to bankruptcy.