AP govt trying to mislead public over Amaravati bonds

Hyderabad: Public Accounts Committee chairman, YSR Congress Party MLA Buggana Rajendranath Reddy criticized the Andhra Pradesh government for trying to mislead the public over Amaravati bonds. Speaking at the party central office here today, the YSRCP leader said that the bonds were mere borrowing of money from the investors and that the TDP leaders were projecting the bonds as an achievement of the State. The state Capital Region Development Authority (CRDA) issued the bonds at Bombay Stock Exchange (BSE) for construction of Capital city of Amaravati.

Rajendranath Reddy said that the state government was compelled to raise money through bonds, since it lacked credibility to draw loans from banks. Adding that the bonds are generally issued under emergency situations, he said that out of the 194 bonds in the country, Amaravati bonds are issued at a rate of interest of 10.75 per cent, which is among the top four interest figures in India.

"Who are the nine institutional investors in the bonds? As part of the contract with the Singaporean government, the State Government can draw loans on lesser interests. Why did the government not borrow money from Singapore?" he asked.

Only Rs 829 crore worth of works have been carried out under the CRDA, the PAC chairman informed. He demanded to know the reason behind excluding the TDP Office from CRDA limits. The state government gave more importance to the bonds, than the Independence Day celebrations, he commented.

The YSRCP leader said that rather than minimizing costs for building the capital, Chandrababu is focused on his vested interests. "Over the burden of the Rs 2.5 lakh crore on the government, the bonds will multiply the liabilities with the high rate of interest," he added.

Minister Nara Lokesh is not aware about the difference between a loan and a grant, he criticized. The amount borrowed in loans have to be repaid to the creditor, but the grants provided by the Centre are not liabilities, he said. Rajendranath Reddy added that the TDP leaders were boasting about the loans by misleading the public.