The State government has started efforts to mobilise resources for the uninterrupted continuance of some of its flagship schemes like Rythu Bandhu and construction of irrigation projects even as the debate over the possibility of advancing elections to the Legislative Assembly continued.
The government has raised ₹3,750 crore in three tranches, including ₹2,000 crore on Monday, with a tenure of 25 years and entailing cut off yield of 8.75%. The government had earlier obtained ₹1,250 crore on August 3 and ₹500 crore on August 24 as State Development Loans (SDLs) in the auctions conducted by the Reserve Bank of India.
Rythu Bandhu in Nov.
The SDLs are said to be aimed at keeping a cushion for distribution of cheques of ₹4,000 an acre to farmers during the second phase of Rythu Bandhu scheme slated to commence in November. The government had released ₹5,925 crore towards cheque distribution during the first phase of Rythu Bandhu, which commenced in May this year, and it is understood to have opted for fresh loan to make sure that there is no shortage of cash with the banks during the second phase of the prestigious scheme irrespective of whether or not the elections are advanced. This apart, the government is reportedly considering allowing the Telangana State Water Resources Development Corporation to raise huge amount as term loan from the Rural Electrification Corporation Limited for the construction of pump houses, surge pools, electro-mechanical and hydro-mechanical components, sub-stations and transmission lines for the implementation of Sitarama Lift Irrigation scheme, JCR Devadula lift irrigation scheme - Kanthanapally Project and Indiramma Flood Flow Canal project.
Permission to the Roads & Buildings department for mobilisation of around ₹3,000 crore as term loan from banks with the State government guarantee is also in the offing. The loan mobilisation process will commence once the Cabinet, which is scheduled to meet very soon, gives its consent and ratifies the proposals.