AP and Telangana Fight over 17000 Crore!

It is three years since the state bifurcation is done, but the central government is sitting safely without giving clarity over sharing of external borrowings for major projects executed in the combined State between the two successor States.

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These loans are of about 17000 Crore for major infrastructure projects such as Outer Ring Road, Krishnapatnam power plant, Hussainsagar clean-up project and others. The interests of these loans are being debited from Andhra Pradesh accounts every month.

Andhra Pradesh government says the majority of these projects are executed only in Telangana and so the loans should go into that state’s account while Telangana government says all project loans should also be shared on the basis of population ratio.

There is 1.66 Lakh Crores of Liabilities for the Erstwhile Andhra Pradesh. Both the states have divided 1.49 Lakh Crore until now and the dispute is about this 17000 Crore of which Telangana should have major share but the state is trying to put the burden on to AP as much as possible.