Union government’s timely support to the country’s youngest and fastest growing State could have avoided a debt of at least Rs 1.5 lakh crore from borrowings to the tune of Rs 4.33 lakh crore
Published Date – 10:00 PM, Tue – 14 February 23
Hyderabad: Contrary to allegations by Bharatiya Janata Party leaders and Union Ministers, figures and statistics prove that it is the Centre’s indifference that is pushing Telangana into debts.
Data furnished by the Centre in the Parliament on Monday reveals that the Union government’s timely support to the country’s youngest and fastest growing State could have avoided a debt of at least Rs 1.5 lakh crore from borrowings to the tune of Rs 4.33 lakh crore availed by the State government, its public sector enterprises and corporations.
As per the Centre’s data, the Telangana government has a total debt of Rs 2,83,452 crore at the end of March 2022, compared to Rs 75,577 crore it had on June 2, 2014, at the time when the new State was formed. Of this, Rs 2,07,875 crore was freshly borrowed after State formation.
Another Rs 1.5 lakh crore was borrowed by public sector enterprises and corporations in the State for implementing the Kaleshwaram Lift Irrigation Scheme, Mission Bhagiratha, Strategic Road Development Programme and other development initiatives. Of this, the Telangana government, its PSEs and corporations obtained a total of Rs 19,430.93 crore from NABARD alone. The total amount lent by various nationalised banks to corporations and PSEs between the same period of 2014 to 2022 stands at Rs 1,31,241 crore.
Around Rs 7,144 crore was given from the sanctioned amount of Rs 8,873 crore from NABARD under Rural Infrastructure Development Fund (RIDF) towards development of infrastructure in rural areas. Similarly, under Warehouse Infrastructure Fund (WIF) by NABARD to the State government, its corporations and PSEs, Rs 972.78 crore was sanctioned for 364 projects and the loan disbursed stood at Rs 852.27 crore. Under Infrastructure Development Assistance (NIDA), Rs 14,516.65 crore was sanctioned and Rs 11,424.66 crore was distributed to different State-owned corporations including Telangana Drinking Water Supply Corporation, Telangana State Horticulture Development Corporation, and Kaleswharam Irrigation Project Corporation.
Officials pointed out that nearly Rs 1.5 lakh crore of loans and interests could have been avoided if the Centre kept its promises and supported the State in initiatives like the Kaleshwaram project, Mission Bhagiratha and Mission Kakatiya among others.
The State government borrowed Rs 32,652 crore to implement its flagship Mission Bhagiratha scheme, which has received accolades from the Centre, which has in fact launched the national version of Mission Bhagiratha after christening it as Jal Jeevan Mission.
In the State meanwhile, repayment of the loan for the scheme, which ensured 100 percent tap water for households in the State, has begun. However, though the NITI Aayog recommended Rs 19,205 crore for the scheme, the same Centre that lauded the scheme has not approved this sum, forcing the State government to mobilise its own funds entirely through internal and external resources.
On the other hand, with only Rs 188.23 crore, the Central funding to Telangana under the Jal Jeevan Mission too is the lowest among all States. Surprisingly, the Centre claimed to have allocated Rs 3,981.98 crore to Telangana under the scheme.
The Centre also backed out from giving national status to the Kaleshwaram project as was promised to accord national project status to any irrigation project under the Andhra Pradesh Reorganisation Act. Thus, the State government was left with no option but to seek loans amounting to nearly Rs 75,000 crore to execute the massive multi-purpose lift irrigation scheme.
Finance Minister T Harish Rao had recently announced that the Centre owes Rs 1.25 lakh crore under various heads to the State. The gaps in the Budget estimates arise only when the Centre stops funds, he pointed out, adding that the State’s outstanding liabilities were reduced to 23.8 percent from 24.3 percent as promised, while the Centre’s liability had increased to 56.2 percent from 55.9 percent.
• Debt availed by Telangana government – Rs 2.83 lakh crore (March 2022)
• Debt on June 2, 2014 – Rs 75,577 crore
• Freshly borrowed loans after State formation – Rs 2,07,875 crore NABARD loans to Telangana government – Rs 19,430.93 crore
• Loans obtained by Telangana PSEs and corporations from nationalised banks – Rs 1.31 lakh crore
• Loan taken to implement Mission Bhagiratha – Rs 32,652 crore
• Niti Aayog’s recommendation for Mission Bhagiratha – Rs 19,205 crore
• Centre’s contribution to Mission Bhagiratha – Nil
• Loans taken from various sources for Kaleshwaram – Rs 75,000 crore approx.
• Pending dues from Centre under various heads – Rs 1.25 lakh crore