Hyderabad: Telangana’s deputy chief minister, Mallu Bhatti Vikramarka, met with Union Finance minister Nirmala Sitharaman in New Delhi on Saturday, August 24, seeking financial support and the resolution of issues related to the Andhra Pradesh Reorganisation Act of 2014.
During the discussion, Vikramarka brought attention to the financial difficulties Telangana faced due to significant borrowings made by the previous government.
He stressed the urgent need for the Centre’s assistance in restructuring Rs 31,795 crore of high-interest loans acquired through Off-Budget borrowings (OBB).
He noted that the heavy debt burden has made it challenging for the state to fulfil its financial commitments.
The deputy chief minister requested that the Union Finance minister consider rescheduling these debts and lowering interest rates to ease the state’s fiscal challenges.
In response, Sitharaman assured him that necessary measures would be taken, including organizing a meeting between the state and central governments to address the raised concerns.
He also raised the issue of the pending release of funds for Centrally Sponsored Schemes (CSS) and grants due under the Andhra Pradesh Reorganisation Act.
He pointed out an error where Rs 495.20 crore intended for Telangana in 2014-15 was wrongly allocated entirely to Andhra Pradesh.
Despite multiple representations, this issue remains unresolved, he added.
Vikramarka urged Sitharaman to correct this mistake to ensure equitable financial management between the two states. Non-transfer of Rs 455.76 crore from the Andhra Pradesh Building and Other Construction Workers Welfare Board (APBOCWWB) and Rs 9.15 crore from the AP Labour Welfare Fund, which belong to Telangana.
He 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.
Pending release of Rs 1,800 crore in grants for the development of Telangana’s backward districts since 2019-20. These funds are crucial for ongoing development efforts in nine districts designated as backwards by the Government of India.
Vikrarmarka also sought the Centre’s assistance in addressing outstanding power dues between Andhra Pradesh and Telangana, which total Rs 6,756.92 crore, while Telangana’s counterclaims amount to Rs 24,132 crore.
He advocated for a comprehensive resolution of these disputes to ensure fair financial management between the two states. Additionally, Vikramarka urged the Finance minister to facilitate the reimbursement of Rs 703.43 crore that Telangana incurred for constitutional bodies and common institutions that served both states prior to the establishment of separate entities.
Furthermore, he requested an increase in the strength of the Indian Police Service (IPS) cadre in Telangana, emphasizing that the augmentation should be based on the state’s territorial needs rather than merely its population ratio.
