Rs 1.79 Lakh Crore debt on United AP. Who will pay how much?

Posted : September 8, 2014 at 12:42 pm IST by ManaTeluguMovies

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The total debt of United Andhra Pradesh has been estimated as Rs 1.79 Lakh crore by the Reserve Bank of India as on March 2014. The share of truncated Andhra Pradesh would be Rs 1,04,000 Crore whereas Telangana would be Rs 75,000 Crore if the above debt is shared as per 52:48 ratio (52 for AP, 48 for T). That’s not all. In between, the united state also owed another Rs 20,000 Crore to the Central government which also need to be shared.

Apart from these, both states are mandated to pay another Rs 60,000 Crore which was raised by the undivided state through the sale of bonds. Although, these loans have to be repaid within 10 years but repaying to bond purchasers is to be considered as immediate task.

Out of this Telangana has to shell out Rs 25,000 Crore where as AP accounts for Rs 35,000 Crore. The big question is how the Telangana and Andhra are going to repay all these whopping debts? The situation appears totally dark for AP which is already mired in financial woes. Even the situation is no different for Telangana. T-government is now planning to seek loan waive from Centre for its share of Rs 20,000 Crore it owed from Centre and likely to propose this to 14th Planning Commission that is due to arrive Hyderabad soon. Even Centre is now caught in catch-22 situation as if it waives off Telangana’s share, it’s bound to waive off AP’s share as well.