Modi teasing KCR with hanging Chicken?

It is something like promising your favourite Chicken dish but keeping it out of your reach. The Union government is doing the same with Telangana government. The state government is in dire need of funds for several of its ambitious projects. After lot of deliberations, the center agreed to raise its borrowing limit from 3 per cent to 3.5 per cent of GSDP, being a revenue-surplus state.

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This will make sure that the state government can secure an additional Rs 3,000 crore loans from various financial institutions. However the latest communication from the center is that the state can not borrow more than 1500 Crore as it had wrongly calculated the borrowing limit based on GSDP growth rate.

The center is alleging that KCR is foreging numbers to get more loans. Making it even complicated, the Center had agreed to raise the limit in April but is yet to give a notification. This will mean that Telangana’s irrigation projects, infrastructure projects, Mission Bhagiratha, 2BHK housing scheme etc have to wait further for funds.