Centre Approves Foreign Loans for Young India Schools
Bhatti thanked the Centre for extending 50-year interest-free loans to states under the scheme and noted that Telangana had already received Rs.4,208 crore during the 2025-26 financial year.
Hyderabad: In a major boost to education infrastructure in Telangana, the Centre has approved the state government’s proposal to secure external multilateral funding from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) for two major education projects.
The department of economic affairs (DEA) under the Union finance ministry has cleared external funding of Rs.4,049.11 crore for the Young India Integrated Residential Schools (YIIRS) project through ADB assistance and Rs.4,903.44 crore for the Telangana Education Infrastructure Upgradation Mission with AIIB support.
Deputy Chief Minister Mallu Bhatti Vikramarka met Union Finance Minister Nirmala Sitharaman in New Delhi on Wednesday and thanked the Centre for granting approvals. Bhatti also discussed key issues related to the state’s development, investments in the education sector, capital expenditure and infrastructure expansion.
Bhatti urged the Centre to exempt the ADB and AIIB loans from the state’s limits under the Fiscal Responsibility and Budget Management (FRBM) Act, stating that these were not routine expenditures but long-term capital investments aimed at human resource development and educational empowerment of SC, ST, BC and minority communities. He said that the state government was committed to providing world-class education to students through the YIIRS initiative.
Bhatti informed Sitharaman that the state government was undertaking major initiatives such as establishing new medical colleges district-wise, expanding rural healthcare services and strengthening educational infrastructure, which would contribute to sustainable and socially inclusive development. He submitted another memorandum to the Union finance minister regarding the state government’s massive investments in the education sector.
He thanked the Centre for extending 50-year interest-free loans to states under the scheme and noted that Telangana had already received Rs.4,208 crore during the 2025-26 financial year. He explained that the state required more financial support to continue its ongoing development works and welfare programmes.
He said that although Telangana was one of the fastest-growing newly formed states in the country, the financial burden arising from debts raised through Special Purpose Vehicles (SPVs) between 2014 and 2023 by the previous BRS regime and repayment obligations had put pressure on the state’s finances. Despite this, he said, the government was continuing to make large-scale investments in education, healthcare, rural infrastructure and human resource development.
Bhatti stated that Telangana’s investments in education and infrastructure would play a key role in achieving the “Viksit Bharat-2047” vision and said adequate support from the Centre would further accelerate the state’s growth and development.
Finance principal secretary Sandeep Kumar Sultania and Planning Department secretary Dr Gaurav Uppal accompanied the deputy chief minister during the meeting.
