Hyderabad: Telangana chief minister KCR is miffed over the Union government’s continued refusal to permit the government of Telangana to participate in the forthcoming May 17 auction for open market borrowings. As per the loan calendar, the state was supposed to raise Rs. 2,000 crore on May 17.
KCR is planning to meet with the opposition parties of the states who were barred to borrow money to protest against the central government’s decision.
According to the sources, the state government is also planning to pass a resolution in the state assembly against the central government and RBI decision and is considering approaching the court.
While refusing the borrowing the Centre has indicated that it was not satisfied with the replies furnished by the state on the loans it had been raising.
The Telangana government has termed the Center’s move as yet another vindictive measure against a performing State.
According to the plan given by Telangana to RBI, the state was to raise Rs.15,000 crore in the first quarter of this fiscal year.
Incidentally, Telangana is not alone in not finding its name in the latest schedule issued by the RBI for the auctioning of securities of State governments on May 17. Only three States Andhra Pradesh, Maharashtra and Rajasthan have been permitted by the RBI to participate in the auction.
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