AP asks TS to reimburse Rs. 500 Crore towards loan repayment

February 04, 2015 | 05:27 PM | 73 Views

Andhra Pradesh Government, which has observed that the Telangana Government has failed to pay its share of loan repayment to the Centre, has written to it seeking reimbursement of Rs. 500 Crore immediately. The united AP Government had availed a loan of Rs. 18,935.49 Crore from the Centre till March 2014. After bifurcation, the AP has started repaying the loan at Rs. 155 Cr every month but this has to be shared by Telangana Government too in 58:42 ratio. Recently, top officials observed that Telangana government has not been sharing this burden and reported this to the Government. Immediately, the AP Chief Secretary has written to his Telangana counterpart asking him to reimburse to AP Rs. 500 Cr towards its repayment share so far. The funds starved AP Government has been trying to mobilise funds from whatever sources available to it. Recently, it has observed that, from 1996 onward, the Tamilnadu Government stopped payment of its due share of Telangana project maintenance cost. Drinking water to Chennai is supplied from this project. The AP Government has written to the Tamilnadu government seeking payment of Rs. 500 Cr immediately towards the balance of its share for maintaining the project. The Tamilnadu Chief Secretary came to Hyderabad and handed over a cheque of Rs. 20 Cr to AP Chief Secretary as initial payment and promised to pay the balance in the next financial year after making budgetary provisions for it.

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