Bad Friday To AP, No Approval For New Debt!

In a major setback to beleaguered and debt-laden Andhra Pradesh state, the Centre has not given its nod yet to the fresh debt. AP Finance Minister Buggana Rajendranath and Principal Finance Secretary SS Rawat have camped in New Delhi for the past one week for the Centre’s approval on availing new debt.

With no response from the Centre till Friday, Rawat has returned to Vijayawada. To avail new debts, AP finance department has provided all the necessary details to the Centre.The AP state government is hoping for a positive response from the Centre by Monday.

If the Centre allows the AP government to take fresh debt, AP wants to participate in the RBI’s auction for state securities to be held on Tuesday. To participate in the auction, states have placed indents to the RBI by Friday. With AP still waiting for the Centre’s permission, it is yet to place the indent.

Andhra Pradesh has sought over Rs 80,000 Crore loan from the Centre. As the state hopes to raise these loans from the Centre, AP government has postponed the disbursement of Amma Vodi scheme from January to June 2022. To disburse Amma Vodi benefit, AP needs Rs 6500 Crore. If the Centre further delays the loan, AP wants to take fresh loans from the banks through the Beverages Corporation.

While the majority of banks including SBI is reportedly stepping back to offer loans to the AP’s corporations, only Bank of Baroda is reportedly showing the interest to provide the loans. AP is trying all its options and possibilities in acquiring new loans and debts, say news reports.