AP, TS to share Rs. 8,000 cr. of inherited debt

December 01, 2015 12:00 am | Updated March 24, 2016 01:14 pm IST - Hyderabad:

Sources said the remaining debt of Rs.10,000 crore raised by the united State under externally aided projects would also be distributed soon between the two successor States.

Some ohese loans were raised to fund projects like Hyderabad’s Outer Ring Road, Hussain Sagar clean-up and theKrishnapatnam power project.

While there is no dispute that such debts will be assigned to the State in which the particular project is located, other borrowings are rather more ticklish, such as those for development, welfare, irrigation, roads, rural water supply and poverty alleviation.

These would have to be apportioned on the basis of the population ratio.

“We expect the distribution of the remaining inherited debt of Rs.10,000 crore to happen soon,” sources said.

Population ratio

As part of State reorganisation, out of the total debt of Rs.1.66 lakh crore toted up by united Andhra Pradesh, an undisputed chunk of Rs.1.48 lakh crore was shared between the two States on the basis of the population ratio in February this year.

The share of Andhra Pradesh in this was Rs.86,340 crore and that of Telangana Rs.61,710 crore.

Debt shares

After the Centre notified these debt shares, both States have been paying interest on their inheritance.

That still left Rs.18,000 crore in dispute. Of this disputed figure, Rs.8,000 crore has now been resolved by the Centre.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.