As per the new updates floating from the inside sources, the remaining debt that was raised by the once United Andhra of Rs.10,000 crore under the category of externally aided projects will soon be distributed between the new bifurcated entities.
Previously, loans were raised to fund projects such as Hyderabad’s Outer Ring Road, Hussain Sagar clean-up and the Krishnapatnam power project. Going with the obvious prediction, funds will be now allocated between the two states based on the location of the above stated projects. However, other borrowings will still have to be reached at solid conclusion, the ones that have been raised towards development, welfare, irrigation, roads, rural water supply and poverty alleviation. These funds will now have to be apportioned on the basis of the population ratio in the individual states.
“We expect the distribution of the remaining inherited debt of Rs.10,000 crore to happen soon,” sources said while speaking to the media.
If we look at the State Reorganisation Act, out of the total debt of Rs.1.66 lakh crore raised up by united Andhra Pradesh, Rs.1.48 lakh crore has been shared between the two States on the basis of the population ratio in the month of February this year. The share of Andhra Pradesh was Rs.86,340 crore and that of Telangana was Rs.61,710 crore.