65% of loans granted for Mission Bhagiratha, Kaleshwaram | Hyderabad News

HYDERABAD: The Comptroller and Auditor General’s report (CAG) tabled in the state assembly on Friday pointed out that the Telangana the government had guarantees to the tune of Rs 77,713 crore at the end of 2018-19, which represents 87% of the total revenue of the previous year (Rs 88,824 crore). The cap is 90%.

The CAG also observed that the Telangana government provided guarantees to organizations that had not finalized their accounts. Guarantees are given by the State to various Crown corporations for ready from financial institutions.
Of the total government guaranteed loans, 65% were for two Special Purpose Vehicles (SPVs) – Telangana Drinking Water Supply Corporation for the implementation of the flagship project Bhagiratha Mission and Kaleshwaram Irrigation Project Corporation Limited for the implementation of the Kaleshwaram project.
And while the state government was to get a guarantee commission of Rs 389 crore from 26 companies by the end of March 2019, it only received the same from one public body – the Telangana State Water. Resources Infrastructure Development Corporation Limited (TSWRIDCL).
The CAG also said that the maturity profile of outstanding public debt in March 2019 showed 46% (Rs 76,262 crore) to be paid over the next seven years. The CAG said that under the Fiscal Responsibility and Fiscal Management Act 2005 (FRBM) (amended in 2016), the state also requires disclosures and statements, which has not been done in four out of ten cases.
Advising the state to carefully examine the financial accounts of these government agencies, the report said that at the end of March 2019, Telangana had issued Rs 24,509 crore in loans to autonomous agencies and corporations, of which about 29% (Rs 6,920 crore) was provided to businesses without a specific revenue stream for debt service. “Thus, such loans do not indicate the real value of government assets,” the CAG report pointed out.

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