Hyderabad: The Telangana government is planning to change how it borrows money for irrigation projects. Right now, the government uses short-term loans, which come with high interest rates. These loans are expensive and are putting pressure on the State’s finances. To fix this, the government is thinking about switching to long-term loans, which have lower interest rates and a longer repayment period. This change could help reduce the financial burden on the State.
The Irrigation Minister, Capt N Uttam Kumar Reddy, has also asked for a five-year moratorium on irrigation loans from the Asian Infrastructure Investment Bank (AIIB). A moratorium means the State would not have to make any loan payments for five years, giving it more time to manage its finances.
To discuss this plan, Minister Uttam Kumar Reddy held a meeting with AIIB representatives at the Jal Soudha office in Erramanzil Colony on Tuesday. Key officials from the Irrigation Department, such as advisor Adityanath Das, Secretary Rahul Bojja, Special Secretary Prashant Jeevan Patil, and Chief Engineers Anil Kumar and Nagender Rao, were present. AIIB representatives Sangma Kim and Rajesh Yadav also attended the meeting.
During the meeting, the Minister explained that switching from short-term to long-term loans would reduce financial strain and make it easier to manage interest payments. He said this move would help speed up the completion of irrigation projects, which could create new farmlands in the State. He requested the AIIB to apply these loans to projects already in progress to ensure they finish on time.
The Minister also told officials to focus on using these loans to finish projects in backward, tribal, and underdeveloped areas, such as Mulug, Mahabubnagar, and Nalgonda districts, where water is needed the most. He mentioned that long-term loans could also help ongoing projects in districts like Palamuru-Rangareddy, Dindi, and other parts of Northern Telangana.
Uttam Kumar Reddy expressed hope that using long-term loans would speed up the development of Telangana’s irrigation infrastructure. He instructed Irrigation Secretary Rahul Bojja to set up another meeting between AIIB representatives and State Finance Secretary Ramakrishna Rao to study the feasibility of these loans.
Finally, the Minister advised officials to make sure all necessary approvals are in place for the ongoing projects, so there are no delays in their execution.
