Who will repay loans? AP or TS?

Telangana and Andhra Pradesh continues to be at loggerheads on various issues after the state division. The latest controversy between them is regarding the loans taken in the United State. AP government recently sent in a notice to Telangana government to repay its share of loans along with interest amouting to Rs 450 crore taken from the Centre by the government in undivided state. However Telangana government out-rightly rejected it and asked to AP government to come up with the proofs that the money taken was spent for Telangana.

The Erst while Andhra Pradesh has taken loans of Rs 612 crore from the Center. According to the now AP government, Telangana has to pay 255 Crore while AP has to pay 357 Crore from the principal amount taken. The interest accrued on these loans amouting to Rs 475 crore was also divided with AP getting Rs 277 crore and TS Rs 198 crore. The united state also owed Rs 11,000 crore to the World Bank, JICA and other external agencies.

The loans of undivided AP are going to be distributed on the basis of the location of the project. Most central loans are used district wise. But the majority of foreign loans will go to Telangana as several projects such as the Outer Ring Road, Hussainsagar cleaning, modernisation of power supply system in the city are located in the capital.