3 days ago
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.
