The Telangana government is considering a shift from present high-cost short-term loans to low-cost long-term soft loans with long moratorium to reduce the financial burden on the irrigation sector.
Currently, the State is grappling with the high cost of short-term loans, which are putting pressure on the State Treasury. By opting for long-term loans, the government aims to ease the burden of EMI repayments and reduce interest costs. The Minister for Irrigation also requested for a moratorium of five years on irrigation loans from Asian Infrastructure Investment Bank (AIIB).
In this regard, the Minister held a meeting with representatives of the AIIB at the Jal Soudha office in Erramanzil Colony on Tuesday. The meeting was attended by key officials, including the Irrigation department advisor Adityanath Das, Secretary Rahul Bojja, Special Secretary Prashant Jeevan Patil, and Chief Engineers Anil Kumar, Nagender Rao, and Deputy Chief Engineer K. Srinivas, alongside AIIB representatives Sangma Kim and Rajesh Yadav.
During the meeting, Mr. Reddy emphasised that converting short-term loans into long-term loans would not only reduce the financial strain on the State but also offer flexibility in interest payments. He added that this move would help expedite the completion of pending irrigation projects, thereby enabling the creation of new ayacut areas. The Minister urged the AIIB representatives to apply these loans to ongoing projects to ensure their timely completion.
The Minister also directed officials to prioritise using these loans to complete projects in underdeveloped, backward, tribal and fluoride hit areas, such as Mulug, Mahabubnagar and Nalgonda districts. He highlighted that the long-term loans could also benefit ongoing projects in backward regions and those under construction in districts like Palamuru-Rangareddy, Dindi, and others in Northern Telangana.
He expressed optimism that utilising long-term loans would fast-track the development of the State’s irrigation infrastructure. He instructed Irrigation Secretary Rahul Bojja to arrange a follow-up meeting between AIIB representatives and Finance Secretary Ramakrishna Rao to conduct a detailed feasibility study.
Mr. Reddy advised officials to ensure that all necessary administrative approvals are secured for the ongoing projects to avoid delays in execution.
Published - October 15, 2024 08:36 pm IST
