AP writes to Telangana to pay 500 crore as share in loan payback to Centre
news Wednesday, February 04, 2015 - 05:30
The News Minute | February 4, 2015 | 10:25 am IST In a move seemingly aimed at refilling their empty coffers, the Andhra Pradesh government has reportedly written to the Telangana government to pay Rs 500 crore as its share towards loan repayment to the Centre. United Andhra Pradesh had borrowed close to Rs 19,000 crore till the end of March 2014 from the Centre. Post bifurcation, this repayment has to be shared by Andhra Pradesh and Telangana in the ratio of 58:42 - according to the AP Reorganization Act. The TDP government which is in a severe financial crisis cross checked their financial history and found that the Tamil Nadu government had to pay Rs 500 crore to the AP government for supplying 5 TMC Krishna waters to Chennai for drinking purpose through the Telugu Ganga Project and wrote to the Tamil Nadu government to clear the dues. Reports suggest that the TN Chief Secretary has assured to clear the dues in the next financial year by providing provision for it in the next budget. Andhra Pradesh Chief Minister N Chandrababu Naidu on Tuesday, has stopped all development works in the state stating that it was difficult to pay government staff their salaries in the face of deep financial problems it faced Telangana is yet to respond to the letter. Read - Why Andhra Pradesh is cash strapped and stopped all development works Tweet Follow @thenewsminute
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