The financial burden related to loans taken for significant infrastructure projects in Hyderabad, such as the Inner Ring Road and Hussain Sagar rejuvenation, has become a point of contention between Andhra Pradesh (AP) and Telangana.
Also Read – Friends, First Reason To Take Drugs, Get Into Betting!
These loans were obtained from foreign financial institutions under the Externally Aided Projects (EAP) during the undivided Andhra Pradesh era. Following the state’s bifurcation in 2014, the responsibility to repay these loans was divided between the newly formed states of AP and Telangana, with AP shouldering 58% of the liability and Telangana 42%.
Despite this arrangement, Telangana has reportedly failed to contribute its share of the repayments for ten years, leading to AP shouldering the entire burden. This has amounted to a substantial sum of approximately Rs. 2,500 crores.
Also Read – Huge NTR Statue to Come Up in Neerukonda
Recently, the Telangana government transferred these overdue funds to AP through the Inter-State Fund Transfer (IGT) mechanism, following directives from the Union Finance Department. This payment has highlighted the longstanding issue of unresolved financial obligations between the two states, which stem from the bifurcation.
The delay in resolving these issues has been attributed to the lack of focus by both the central and state governments over the past decade. During the tenure of Chandrababu Naidu as the Chief Minister of AP, efforts were made to address bifurcation-related issues, especially given that AP was part of the NDA alliance at the time.
Also Read – CM Revanth Reddy Petition in High Court
However, these efforts lost momentum after the TDP parted ways with the NDA. When YS Jagan Mohan Reddy became Chief Minister in 2019, despite his good relations with both the central government and the Telangana government, there was little progress in resolving these financial disputes until now.
The recent transfer of funds from Telangana to AP is seen as a positive development and a result of strategic alliances. It underscores the importance of cooperation between states and the central government in resolving financial disputes that have arisen due to the state’s division.
However, it also highlights the neglect of such critical issues by the involved governments over the past decade, which could have been resolved much earlier.
