Hyderabad: Bharat Rashtra Samithi (BRS) MLC K Kavith on Monday, May 12, accused the Telangana government of planning to convert the Telangana Industrial Infrastructure Corporation (TGIIC) into a public company.
Kavitha alleged that the Congress government plans to mortgage 1.75 lakh acres of land belonging to the TGIIC. The government issued GO 12 on April 15, authorising the change in TGIIC’s status from a private limited company to a public limited entity.
The move is meant to facilitate larger borrowings by enabling access to capital markets through bonds, debentures, or even a potential IPO. Addressing a press conference at the Telangana Bhavan, the MLC displayed the government order accusing the Congress government of mortgaging Telangana lands on the stock exchange to raise massive loans.
She demanded the immediate withdrawal of the GO, questioning the secrecy behind the move.
She claimed to have specific evidence regarding the government’s plan and asked, “Why was this change hidden from the public? What will happen to Telangana’s lands if there is a loss in the market? This is a betrayal of the people’s trust.”
Kavitha further reminded the state government that it had borrowed over Rs 1.8 lakh crore in just 16 months, with no major welfare scheme fully implemented.
“While part of it was spent on administration and repayment of loans, nearly Rs 1 lakh crore was paid to big contractors, of which Rs 20,000 crore was paid to Revanth Reddy as commission,” she claimed, demanding a white paper on state finances.
According to the GO, the number of shareholders has been increased from the existing four to seven, fulfilling the legal criteria for the conversion. The vice chairman and managing director of TGIIC has been directed to take necessary action in this regard.
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