Latest news with #AndhraPradeshMineralDevelopmentCorporation
Time of India
27-06-2025
- Business
- Time of India
Andhra lacks fiscal discipline, picks up debts through NCDs at high interest rate: Ex-CM YS Jagan Mohan Reddy
Former Chief Minister YS Jagan Mohan Reddy has accused the current Andhra Pradesh government of financial mismanagement. He claims the state is in trouble due to a lack of fiscal discipline and disregard for the Constitution. Reddy highlighted the Andhra Pradesh Mineral Development Corporation's (APMDC) issuance of Non-Convertible Debentures (NCDs), or bonds, at a 9.30% interest rate. He stated this is 2.60% higher than the prevailing State Development Loan (SDL) rate. In a social media post addressed to Union Finance Minister Nirmala Sitharaman and the Prime Minister's Office, Reddy said that APMDC concluded its second NCD issuance, raising Rs 5,526 crore and bringing the total to Rs 9,000 crore on Wednesday, June 25. — ysjagan (@ysjagan) According to Jagan, 'The govt went ahead with the issuance of NCDs despite the matter being admitted by the AP High Court and notices served. It is quite apparent that the proceeds of the issuance would be utilized for financing government revenue expenditure.' Reddy explained that the current government is allowing private companies to access the state's consolidated fund through a Reserve Bank of India (RBI) direct debit mandate. He argues this allows private parties to withdraw funds from the state treasury without state government official oversight. He believes this violates articles 203, 204, and 293(1) of the Constitution of India. Reddy also criticised the government for mortgaging mineral wealth worth Rs 1,91,000 crore for NCD issuances totaling Rs 9,000 crore. Live Events He estimates the high interest rate will add Rs 235 crore to APMDC's yearly expenses, with the NCDs having a 10-year term. He claims that the current government's borrowing in the last 13 months has exceeded 50% of the borrowing done by the previous government over five years.
The Hindu
22-06-2025
- Business
- The Hindu
APMDC attempting bond issue violating Constitutional requirements: Jagan
The YSRCP president and former Chief Minister Y.S. Jagan Mohan Reddy said in a post on 'X' on Sunday that Andhra Pradesh Mineral Development Corporation (APMDC) was attempting another Bond (NCD) issue on June 24, on terms violative of the Constitution, in an unprecedented manner. Private parties were being given access to the Consolidated Fund of the State disregarding Constitutional safeguards, violating Articles 203 and 204. This amounts to permitting APMDC to borrow against the security of the Fund, in violation of Article 293(1) of the Constitution, he said. Further, an exclusive charge is given to the Bond (NCD) holders of the APMDC on all the future revenue of the APMDC. Additionally, government mineral wealth worth ₹1,91,000 crore was mortgaged to NCD (bond) holders. This was nothing short of cheating the public. In this regard, a case was pending at the A.P. High Court, which was admitted and notices were served on all the respondents to file counters. When the matter was sub judice, it was inappropriate for the government to allow APMDC to go ahead with the bond issue, he said, adding that it was indeed disheartening that the government was disregarding the Constitution and the future of the State.
India.com
07-05-2025
- Business
- India.com
AP High Court Admits PIL On APMDC, Notice Issued To Centre And State; Response Sought In Four Weeks
The Andhra Pradesh High Court on Tuesday admitted a Public Interest Litigation (PIL) challenging the state government's move to raise nearly Rs 9,000 crore in loans allegedly by leveraging the assets and name of the Andhra Pradesh Mineral Development Corporation (APMDC). A division bench comprising Chief Justice Dhiraj Singh Thakur and Justice Ravi Cheemalapati issued notices to both the central and state governments, directing them to submit their counter-affidavits within four weeks. The PIL was filed by YSR Congress Party MLC and General Secretary Lella Appi Reddy, who accused the Chandrababu Naidu-led government of violating constitutional norms and endangering the financial health of both APMDC and the state. Senior advocate P. Veera Reddy represented the petitioner in court. According to the petition, the state government is allegedly pledging the state treasury as collateral to secure private loans through APMDC, a move that the petitioner claimed could grant private lenders direct access to the consolidated fund of the state in the event of loan default. This is reportedly the first instance in Andhra Pradesh's history where such a mechanism has been used, raising concerns about its legality and long-term financial implications. The PIL also warned that APMDC, once a stable and profitable public sector enterprise, is now being dragged toward insolvency due to these controversial borrowing methods. The court will take up the matter after the completion of the four-week response period.
