AP burdened by Telangana’s avoidance

Andhra Pradesh had lodged a complaint on Telangana to the accountant general that the latter is not paying interests for the loans taken in the United State. The whole burden of the interests is falling on the truncated state already bogged down by a deficit budget. The truncated state paid Rs 900 crore as interest on the loans taken by united AP since the bifurcation in June 2014 till March 31 this year.

Telangana government is avoiding paying the interests citing the non-completion of the sharing of loans. Both the states are at loggerheads regarding the division of loans. While Telangana government wants the loans to be divided on population ratio, AP is insisting on dividing those according to the location of projects as most loans are taken for infrastructure development in Hyderabad.

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In all, united Andhra Pradesh had raised loans to the tune of Rs 8,928 crore from different foreign financial institutions and Rs 8,737 crore from the Centre. If the loans are divided on population basis, AP would have to pay Rs 5,096 crore and Telangana Rs 3,641 crore. On the other hand, if AP’s point of view prevails, Telangana will have to pay Rs 5,222 crore and AP Rs 3,705 crore.