Andhra Pradesh, Telangana government fight over delay in power bonds
AP and Telangana are at loggerheads over the distribution of assets and liabilities
By : DC Correspondent
Update: 2015-10-03 06:52 GMT
Hyderabad: While Andhra Pradesh and Telangana states are at loggerheads over the distribution of assets and liabilities, the Andhra Pradesh Power Finance Corporation (APPFCL) has defaulted in debt servicing on bonds worth Rs 3,100 crore.
Due to this, the Credit Rating Information Service of India (CRISIL) rating has downgraded the bonds on September 25. The APPFCL under the united AP government raised Rs 3,100 crore in three separate bond issues and the company was supposed to pay Rs 151 crore as interest on these bonds while it had paid Rs 87.7 crore resulting the shortfall of Rs 63.3 crore.
The AP government energy department officials said they were paying the bond holders proportionately hence the delay in payment but the Telangana government is not releasing the amount according to the ratio resulting the poor rating of the APPFCL.