Opposition attacks AP Govt over mortgaging lands for loans

Visakhapatnam:The fund-starved Andhra Pradesh Government is under fire from the opposition parties over its decision to mortgage valuable lands to obtain loans to tide over the crisis.

Sources said the government is borrowing an estimated Rs 25,000 crore; Rs 1600 crore alone by mortgaging 13 prime government properties in Visakhapatnam during the current financial year. The sources said a consortium of banks has been finalised to take loans to clear pending bills and meet expenditure being incurred to implement some of the welfare schemes.

The Ministry of Finance reportedly allowed the State an open market borrowing of Rs 10,500 crore during the current fiscal. The loans taken by the State amounted to Rs 34,058 crore during April-August. "Mortgaging government lands at Circuit House, Gopalapatnam Rythu Bazar, R&B Quarters and other places in Visakhapatnam, proposed to be made executive capital is ridiculous. This government does not know how to run the administration," TDP politburo member and former Minister Ch Ayyanna Patrudu told Bizz Buzz.

The situation has aggravated following a drastic fall in revenue triggered by the pandemic and delay in fulfilling promises made by the Centre. The multipurpose Polavaram project, given national status by the Centre as per promise made at the time of bifurcation, is one of the contentious subjects where the State is insisting on release of funds for the escalation in the estimated outlay and towards compensation to the project affected people.

Finding fault with the Opposition for trying to make a mountain out of a molehill, YSRCP spokesman and Anakapalle MLA Gudivada Amarnath said unlike the erstwhile TDP Government, the present regime is very judicious in borrowing loans to tide over the crisis. He said the pandemic has led to a drastic fall in revenues. Amarnath said the government is getting just Rs 3 crore to Rs 4 crore against normal receipt of Rs 150 crore per day.

He said during the TDP regime government properties were sold indiscriminately. Senior leaders like Patrudu kept mum when party MPs and others indulged in land-grabbing by destroying records of government lands. He said despite the difficult financial position, Chief Minister Y S Jagan Mohan Reddy has implemented all his poll promises by taking up Navaratnalu programme. Jana Sena corporator Peethala Murthy Yadav, CPI (M) city president B Ganga Rao, BJP State vice-president N Vishnu Kumar Raju said mortgaging government sites to borrow loans is very risky as the banks will attach the properties in the event of default in repayment of loans.