K M Dayashankar
NEW DELHI, AUGUST 24, 2024: Telangana state Deputy Chief Minister Mallu Batti Vikramarka has urged Union Finance Minister Nirmala Seetthararaman to provide necessary financial assistance as per the Andhra Pradesh States Reorganistaion Act of 2014.
The Deputy CM met the Union Finance Minister in New Delhi on Saturday. He narrated the woes of Telangana state following the mismanagement by the previous BRS government.
Responding to the pleas, Finance Minister Sitharaman reportedly assured Mr. Vikramarka that appropriate steps would be taken to resolve these issues, including conducting a meeting between the State and Central governments to address the concerns raised.
During the meeting, Mr. Vikramarka highlighted the financial strain on Telangana due to the previous government’s extensive borrowings. He emphasized the urgent need for the Centre’s intervention to restructure ₹31,795 crore of high-interest loans raised by the State through Off-Budget borrowings (OBB). “The previous administration’s excessive borrowing has imposed a heavy debt burden on the State, making it difficult to meet financial obligations,” he stated. The Deputy CM requested that the Union Finance Minister consider rescheduling these debts and reducing interest rates to alleviate the fiscal pressure on the State.
Mr. Vikramarka also reminded the finance minister of the pending release of funds for Centrally sponsored schemes (CSS) and the grants due under the AP Reorganisation Act. He pointed out an error in the allocation of ₹495.20 crore intended for Telangana during the fiscal year 2014-15, which was erroneously allocated entirely to Andhra Pradesh. Despite multiple representations, the issue remains unresolved. The Deputy CM urged Ms. Sitharaman to correct this mistake to ensure equitable financial management between the two States.
Another critical issue raised was the non-transfer of ₹455.76 crore from the Andhra Pradesh Building and Other Construction Workers Welfare Board (APBOCWWB) and ₹9.15 crore from the AP Labour Welfare Fund, which belongs to Telangana. Vikramarka requested the Finance Minister to direct Andhra Pradesh to expedite the transfer of these funds, along with applicable interest, to uphold the provisions of the Reorganisation Act.
In addition to these financial concerns, Vikramarka brought to the Finance Minister’s attention the need for the Centre to release ₹1,800 crore in grants for the development of Telangana’s backward districts, which have been pending since the financial year 2019-20. He stressed that these funds are crucial for the State’s ongoing development efforts in nine districts designated as backward by the Government of India.
The Deputy CM also sought the Centre’s intervention in resolving outstanding power dues between Andhra Pradesh and Telangana. He advocated for a comprehensive settlement of these disputes, which amount to ₹6,756.92 crore, with Telangana’s counterclaims totalling ₹24,132 crore.
Mr. Vikramarka further urged the Finance Minister to facilitate the reimbursement of ₹703.43 crore in expenses incurred by Telangana for constitutional bodies and common institutions that served both States until separate entities were established.
The Deputy CM requested the augmentation of the IPS cadre strength in Telangana based on the State’s territorial requirements rather than just the population ratio. I explained the state’s financial situation to the Union Minister and requested assistance. I also reminded them about the release of funds for centrally sponsored schemes and the funds that are due as per the Reorganization Act.
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