Latest news with #AndhraPradeshReorganisationAct
Economic Times
18 hours ago
- Business
- Economic Times
Why Telangana and Andhra Pradesh are still fighting over a loan taken a decade ago
A dispute continues between Telangana and Andhra Pradesh. It is over nearly ₹9,000 crore in loans. These loans were taken before the states' division. The central government is mediating the loan sharing. Telangana wants a population-based sharing model. Andhra Pradesh wants location-based sharing. Telangana fears increased financial burden. Further discussions may resolve the issue. A balanced approach is needed. Tired of too many ads? Remove Ads Centre steps in to mediate loan sharing dispute Telangana raises legal and financial concerns Tired of too many ads? Remove Ads Projects in question span both states Why Telangana and Andhra Pradesh are still fighting over a loan takenEven after 11 years since Andhra Pradesh was divided to form the new state of Telangana, the two states remain in disagreement over how to share nearly ₹9,000 crore in loans taken for externally aided projects before the bifurcation. The financial liabilities tied to these projects remain unresolved, and both states have yet to agree on a clear method for dividing them, a TOI report Pradesh had borrowed ₹8,929 crore under 15 foreign-funded projects before the 2014 bifurcation. These loans were meant for infrastructure and development initiatives. However, Telangana and Andhra Pradesh have not been able to agree on how the burden should be months ago, the Union Ministry of Home Affairs held a meeting to address the issue. The Department of Economic Affairs stated that loans should be borne by the state where the project is located. For projects that benefit both states, it suggested that the share should be worked out as per the recommendations of the respective accountants recommendation was not accepted by Telangana. Its officials argue that the method of division should follow Section 54(1) of the Andhra Pradesh Reorganisation Act, 2014, which calls for a population-based sharing maintains that dividing the loans based on the location of the project would not reflect the law. Officials from the state say that the loans were allocated without proper consultation with Telangana and that a location-based formula would unfairly increase its financial loans in dispute are not tied only to projects in Andhra Pradesh. Some of the borrowed funds were also used in Telangana. For example, Andhra Pradesh cited the Krishnapatnam Super Critical Power Station located within its boundaries and the Hussainsagar development project in Telangana as examples where loan division should follow the project's Telangana's position remains firm. Its officials say that accepting Andhra Pradesh's formula could result in an additional ₹1,449.75 crore in liabilities for the state, which is already under financial senior officials from both states believe that further discussions may help resolve the issue. They suggest that a more balanced approach, keeping in mind both the law and the financial realities of each state, could lead to a solution.
Time of India
a day ago
- Business
- Time of India
Why Telangana and Andhra Pradesh are still fighting over a loan taken a decade ago
Centre steps in to mediate loan sharing dispute Telangana raises legal and financial concerns Live Events Projects in question span both states (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Why Telangana and Andhra Pradesh are still fighting over a loan takenEven after 11 years since Andhra Pradesh was divided to form the new state of Telangana, the two states remain in disagreement over how to share nearly ₹9,000 crore in loans taken for externally aided projects before the bifurcation. The financial liabilities tied to these projects remain unresolved, and both states have yet to agree on a clear method for dividing them, a TOI report Pradesh had borrowed ₹8,929 crore under 15 foreign-funded projects before the 2014 bifurcation. These loans were meant for infrastructure and development initiatives. However, Telangana and Andhra Pradesh have not been able to agree on how the burden should be months ago, the Union Ministry of Home Affairs held a meeting to address the issue. The Department of Economic Affairs stated that loans should be borne by the state where the project is located. For projects that benefit both states, it suggested that the share should be worked out as per the recommendations of the respective accountants recommendation was not accepted by Telangana. Its officials argue that the method of division should follow Section 54(1) of the Andhra Pradesh Reorganisation Act, 2014, which calls for a population-based sharing maintains that dividing the loans based on the location of the project would not reflect the law. Officials from the state say that the loans were allocated without proper consultation with Telangana and that a location-based formula would unfairly increase its financial loans in dispute are not tied only to projects in Andhra Pradesh. Some of the borrowed funds were also used in Telangana. For example, Andhra Pradesh cited the Krishnapatnam Super Critical Power Station located within its boundaries and the Hussainsagar development project in Telangana as examples where loan division should follow the project's Telangana's position remains firm. Its officials say that accepting Andhra Pradesh's formula could result in an additional ₹1,449.75 crore in liabilities for the state, which is already under financial senior officials from both states believe that further discussions may help resolve the issue. They suggest that a more balanced approach, keeping in mind both the law and the financial realities of each state, could lead to a solution.
Time of India
2 days ago
- Business
- Time of India
11 yrs since division, T & AP yet to agree on 9,000 cr liabilities
Hyderabad: Even 11 years after bifurcation, Telangana and Andhra Pradesh are locked in a dispute over financial liabilities associated with loans taken for externally aided projects. The erstwhile united Andhra Pradesh had secured nearly Rs 9,000 crore worth loans and external assistance, yet the division of the financial burden remains unresolved as both states struggle to reach a mutually agreeable solution. Andhra Pradesh had accrued Rs 8,929 crore under 15 distinct foreign aid projects. In response to the ongoing dispute, the Union home ministry had convened a meeting two months ago and the department of economic affairs clarified that loans tied to projects situated in a particular region should be the responsibility of that state. Furthermore, it was suggested that loans for projects benefiting both states should be apportioned according to the recommendations of the accountants general. However, this approach has drawn fierce objections from Telangana's leadership. Many officials believe that constructive dialogue could alleviate a number of these challenges. These loans are not all tied exclusively to projects within Andhra Pradesh. Many are linked to initiatives in Telangana as well. For instance, Andhra Pradesh contends that the division of loans for significant projects, such as the Krishnapatnam Super Critical power station located in Andhra Pradesh and the Hussainsagar development project in Telangana, should be determined based on territorial boundaries. In stark contrast, Telangana advocates for loan division based on population ratio, as stipulated in Section 54(1) of the Andhra Pradesh Reorganisation Act, 2014. The officials from Telangana argue that this legislation prohibits a territorial basis for division and that loans were allocated without adequately addressing Telangana's perspectives. Andhra Pradesh's position could impose an additional financial burden of approximately Rs 1,449.75 crore on Telangana, which is already grappling with substantial debts, raising alarm among state officials.
New Indian Express
26-05-2025
- Politics
- New Indian Express
Harish Rao slams Centre, AP over Godavari water; seeks special Assembly session
HYDERABAD: Alleging that the state and Central governments failed to protect the Telangana water rights, BRS leader and former irrigation minister T Harish Rao on Sunday demanded that the government convene a special session of the Legislative Assembly and discuss the Godavari-Banakacherla irrigation project taken up by the Andhra Pradesh government. Speaking to reporters, he said that the Godavari-Banakacherla project was a 'well-orchestrated conspiracy' to divert 200 tmcft of Godavari water to AP, which would be detrimental to Telangana. He alleged that Andhra Pradesh is aggressively pushing forward with the Banakacherla project without securing any mandatory approvals — neither from the apex council, nor from the Central Water Commission (CWC). He pointed out that no consent was given by Telangana or other riparian states to the project, which is a violation of the provisions of Andhra Pradesh Reorganisation Act, 2014. Accusing the BJP-led Central government of adopting double standards, Harish Rao pointed out that while Polavaram was granted national project status and over `80,000 crore funds, Telangana's Kaleshwaram and Sitarama irrigation projects were denied similar recognition. 'Now, the Centre is reportedly offering to fund 50% cost of Banakacharla through grants besides allowing Andhra Pradesh to raise the remaining funds via FRBM-limit exemptions, a privilege never extended to Telangana. Effectively, the Centre is planning to fund a project, which has no approvals,' he said. The former irrigation minister alleged that Chief Minister A Revanth Reddy failed to act or even raise his voice against the Godavari-Banakacherla project. He said though Revanth Reddy attended NITI Aayog meeting, he did not speak against the project.
New Indian Express
25-05-2025
- Politics
- New Indian Express
Telangana objects to AP's plan to draw Polavaram dead storage water; calls it unauthorised
HYDERABAD: The Telangana government has raised strong objections against the Andhra Pradesh government's reported plans to construct a new Lift Irrigation Scheme (LIS) drawing water from the dead storage of the Polavaram Irrigation Project. The Telangana government has called on the Godavari River Management Board (GRMB) to take immediate action as mandated under the Andhra Pradesh Reorganisation Act (APRA), 2014. On Saturday, Engineer-in-Chief (General) G Anil Kumar wrote a letter — a copy of which was accessed by TNIE — addressed to the Polavaram Project Authority (PPA) and the GRMB to prevent the proposal from moving forward. This objection comes in the wake of a news report published in a vernacular daily on May 21, which stated that the Andhra Pradesh government plans to lift water from a 35-metre level in the dead storage of the Polavaram reservoir during the current financial year. The report cited G.O. RT No. 134, issued on April 19, 2021, as the basis for the plan.
