Two summers have gone by since Andhra Pradesh was bifurcated and yet there is no clarity on sharing of external borrowings for major projects executed in the combined State between the two successor States.
These loans pertained to major infrastructure projects such as Outer Ring Road, Krishnapatnam power plant, Hussainsagar clean-up project and others.
As a consequence, interest on about Rs.10,000 crore external borrowings was being deducted from the account of the successor State of Andhra Pradesh pending division of debt.
The two Telugu states are yet to come to an understanding on dividing the loans availed for various projects.
The Andhra government has been contending that projects such as Outer Ring Road, Hussainsagar clean up, roads and others that were executed only in Telangana should go into the share of that State.
Similarly, Krishnapatnam power project for which a loan was availed by APGenco would go into the account of Andhra Pradesh. However, the Telangna government apparently took a stand that all project loans should also be shared on the basis of population ratio.
Population ratio
While the total outstanding debt prior to bifurcation was Rs.1.66 lakh crore, the Comptroller and Auditor General divided the undisputed loan burden of Rs.1.48 lakh crore between Andhra Pradesh and Telangana on the basis of population ratio. The CAG had notified their respective share of inherited debt eight months after the bifurcation.
The balance unresolved debt of Rs.18,000 crore borrowed by the combined State comprised Central loans of Rs.8,000 crore and project-wise loans of Rs.10,000 crore.
Andhra Pradesh had been servicing the entire unresolved debt on behalf of both the States since June, 2014. On Central loans alone, it had been repaying Rs.150 crore a month, which included Telangana’s share too.
The State got some relief when the CAG divided the Central loans of Rs.8,000 crore in November, 2015 between the two States on the basis of population ratio of 58:42. The CAG also communicated to the Accountant General to debit the loan repayment from the individual States as per their share.
Monthly repayment
“From November last, the AG has been scheduling the monthly repayment of the Central loans in the account of the respective State. But Telangana has not yet reimbursed the loan paid by AP on behalf of Telangana from June, 2014 till October, 2015 which amounted to about Rs.1,000 crore,” sources said.
The division of the Central loans, however, has to be formally notified by the Centre just as it had done earlier with regard to Rs.1.48 lakh crore of united AP that was divided between the two States.
