Rs 18,000 crore Jica loan for Andhra Pradesh
State to pitch in with Rs 5,000 crore more to get projects moving
By : DC Correspondent
Update: 2015-05-18 01:02 GMT
Hyderabad: In a major boost to the state, the Japan International Cooperation Agency (JICA) has agreed to a Rs 18,000 crore loan. This is the first external aid that the Telugu Desam government managed to get after it stormed to power in 2014.
In a joint meeting with AP and Japan officials, JICA agreed to release the loan in the current financial year. According to Fiscal Responsibility and Budget Management (RFBM) Act, the state government can borrow around Rs 18,000 crore in the present financial year. The state government has asked the Centre to amend the FRBM Act so that it is allowed to borrow more funds. However, the Centre did not do so.
State Finance department officials said that the Central government officials said that AP could cross the limits prescribed in the FRBM Act, but this assurance has only been oral. Meanwhile, the state government has identified various projects to be taken up under the JICA loan. In addition the funds from JICA, the state government will allot Rs 5,000 crore for these projects.