Loan Sharing remains a deadlock for AP and TS!

Among the numerous issues that cropped up between Andhra Pradesh and Telangana after the bifurcation. prominent one is about the sharing of foreign loans taken in the United state. The loans were to the tune of Rs 8,928 crore from different foreign financial institutions, including World Bank, Asian Development Bank and Japan International Cooperation Agency (JICA).

Telangana wants them to be divided in population basis which means AP will be left paying more. On the other side, Andhra Pradesh wants them to divided in the basis of location of the projects for which the loans were raised.

Most of the development projects taken up were in and around Hyderabad city. 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.