Center’s negligence burdens Andhra Pradesh

It is two years since the state bifurcation is done, but the central government is sitting safe with out giving clarity over sharing of external borrowings for major projects executed in the combined State between the two successor States. These loans are of about 10000 Crore for major infrastructure projects such as Outer Ring Road, Krishnapatnam power plant, Hussainsagar clean-up project and others.

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The interests of these loans are being debited from Andhra Pradesh accounts every month. Andhra Pradesh government says majority of these projects are executed only in Telangana and so the loans should go in to that state’s account while Telangana government says all project loans should also be shared on the basis of population ratio.

Besides there is also a 8000 Crore loan from the Central government in the undivided state. Recently the loans were divided in population ration. But AP government paid interests for Telangana share as well from June, 2014 till October, 2015 which amounted to about Rs.1,000 crore.