Why Is Telangana Paying ₹2,500 Crores to AP?
Andhra Pradesh (AP) and telangana are at odds over the cost of loans taken out for large-scale infrastructure projects in Hyderabad, such as the Inner Ring Road and the regeneration of Hussain Sagar.
During the period when andhra pradesh was an independent state, these loans were acquired from overseas financial institutions under the Externally Aided Projects (EAP). After the state split apart in 2014, the newly created states of ap and telangana took on different amounts of debt repayment: ap was responsible for 58% of the debt, and telangana for 42%. This agreement notwithstanding, telangana is said to have neglected to make its ten-year part of the repayments, causing ap to bear the full burden. This has resulted in a large amount of about Rs. 2,500 crores.
During the period when andhra pradesh was an independent state, these loans were acquired from overseas financial institutions under the Externally Aided Projects (EAP). After the state split apart in 2014, the newly created states of ap and telangana took on different amounts of debt repayment: ap was responsible for 58% of the debt, and telangana for 42%. This agreement notwithstanding, telangana is said to have neglected to make its ten-year part of the repayments, causing ap to bear the full burden. This has resulted in a large amount of about Rs. 2,500 crores.
As instructed by the Union Finance Department, the telangana government recently sent these past-due monies to ap via the Inter-State Fund Transfer (IGT) system. This payment has brought attention to the long-standing problem of outstanding debts between the two governments resulting from their split. The inability of the federal government and the state governments to concentrate throughout the last ten years has been blamed for the delay in resolving these concerns. Given that ap was a member of the nda coalition at the time, attempts were made to address bifurcation-related concerns during Chandrababu Naidu's stint as the state's chief minister.
But once the tdp split from the nda, these initiatives stalled. Despite his cordial ties with the federal government and the telangana administration, there hasn't been much movement in settling these financial problems since jagan MOHAN REDDY' target='_blank' title='ys jagan mohan reddy-Latest Updates, Photos, Videos are a click away, CLICK NOW">ys jagan mohan reddy took office as chief minister in 2019. The current funding shift from telangana to ap is viewed as a result of strategic partnerships and as a positive development. It emphadata-sizes how crucial collaboration is between the federal government and the states in settling financial conflicts brought on by state separation. It also draws attention to the governments' decade-long disregard for these important concerns, which might have been settled far sooner.