Departments Under Nara Lokesh Take Huge Loans From Banks

10 Mar, 2019 18:58 IST|Sakshi
Nara Lokesh

Amaravati: it is learnt that IT minister of Andhra Pradesh Nara Lokesh is walking in the footsteps of his father, Chief Minister Chandrababu Naidu, when it comes to heavy borrowings on behalf of the state. The ministry represented by him in the government, Panchayat Raj and Rural Development is reported to have borrowed thousands of crores from banks by pledging government assets.

The government of India has been disbursing Rs. 10,000 crores to the AP government for ongoing activities in the department. In addition to that amount, the state government from its budget allocates Rs.1000-1500 crores. However, these funds seem to have been insufficient for the department because additionally in April 2018, in one year alone, the department borrowed as much as Rs.18,850 crores from banks.

The government takes a roundabout route to borrow money. Instead of the department approaching the banks, corporations borrow huge sums. The government in turn, guarantees these loans. Interestingly the borrowings increased when elections were five to six months away. Sources say that funds borrowed by corporations under the Panchayat Raj and Rural Development department, were diverted to Pasupu-Kumkuma and Annadata Sukheebhava programmes, by pledging water supply schemes and roads.

Rs.1,500 Cr Loan For Roads In Rural Areas

Citing repairs for 16,000 km of 5515 link roads in the districts of Anantapur, Chittoor, East Godavari, Kurnool, Prakasam, Nellore, Visakhapatnam, Vizianagaram and Dr. YSR Cuddapah the government borrowed Rs.1500 crores. This sum was borrowed by the AP road development corporation under the department by using funds in a public sector bank as security. The Union government allocates Rs.400 crores annually to an account in this public sector bank under the Pradhan Mantri Sadak Nirman Yojna (PMSNY) scheme. The Andhra Pradesh government stood security to the Rs.1500 crore borrowed by its Corporation and issued orders on February 8 to this affect.

Rs. 3,800 Cr For Minor Roads

The AP government decided to borrow Rs.3800 crores (before the elections) from Asian Development Bank for construction of roads in villages which have a population of about 250. Tenders were also called for this work.

Rs. 12,380 Cr In Name Of Water Supply Schemes

With elections around the corner, the government of Andhra Pradesh is borrowing Rs.12, 380 crore from banks through the AP Drinking Water Supply Corporation. In 2014, chief minister Chandrababu Naidu had announced the government’s objective to provide 55 litres of drinking water to each individual and a tap for every household of all the 13 districts under the water grid scheme. In October 2015, the AP government sent teams of officials to various states. It also drew up a plan at an estimated cost of Rs.22,000 crores. For four years the AP government did not act on this, and as elections got closer, it approached the banks for a loan of Rs.12,380 crores.

The estimated costs were hiked from Rs.22,000 crores to Rs.29,000 crores. As a part of this the government gave its nod for implementation off work amounting to Rs.15,769 crores in the first phase. The government has already borrowed in the name of water supply schemes by pledging them. However, it has not undertaken any of these works. Sources say that the TDP supremo directed the diversion of these funds into election schemes.

Rs. 1250 Cr Loan For LED Streetlights

After Nara Lokesh took over as minister, he undertook the replacement of tube lights on lamp posts in streets of villages with LED lights. The department signed agreements with handpicked contractors for the supply of LED bulb at Rs.4 50 for a period of 10 years. Contractors had to shell out Rs.4500 for a bulb which would not cost him Rs.1,000. For 30 lakh streetlights across the state in 12,918 village panchayats, Rs.1, 250 crores would have to be borrowed to pay to the contractors over a period of 10 years for LED lights.

Also Read: Chandrababu Sinking Deeper Into A Quagmire Trying To Tarnish Image Of Opposition Leaders

whatsapp channel
Read More:
More News