Telangana seeks financial aid, loan restructuring from Centre

New Delhi: Telangana's Deputy Chief Minister Mallu Bhatti Vikramarka met Union Finance Minister Nirmala Sitharaman here on Saturday and sought financial assistance and pending dues in accordance with the state reorganisation Act.

In addition, Vikramarka requested rescheduling of the non-budgetary loans taken by the previous government in the southern state and reduction in interest rates.

"I explained the state's financial situation to the Union minister and requested for assistance. I also reminded them about the release of funds for centrally-sponsored schemes and the funds that are due as per the reorganisation Act," Vikramarka told reporters after the meeting.

The Congress leader said the previous government's borrowings at higher interest rates have resulted in an additional interest burden of Rs 31,795 crore.

"Currently, the interest payments on loans exceed the amount spent on salaries. I brought a total of eight such issues to the finance minister's attention," he added.

Vikramarka also sought the release of the pending funds for the backward districts of Telangana and requested for the Centre's intervention in obtaining dues from Andhra Pradesh for electricity.

The Centre has said a meeting would be arranged between officials of the state and the Union government for appropriate action.

At a separate meeting, Telangana's Tourism Minister Jupally Krishna Rao met Union Tourism Minister Gajendra Singh Shekhawat and sought support for the development of the southern state's tourism sector.

Shekhawat has assured him of full cooperation for the development of Telangana's tourism sector, Rao said.