KCR’s stay in Delhi aims to push the boundaries of FRBM lending – Reuters

Express press service

HYDERABAD: Chief Minister K Chandrasekhar Rao’s plan to stay in Delhi during the monsoon parliamentary session to push for the resolution of outstanding state issues appears to be paying off. However, the main concern – the borrowing limit under the Fiscal Responsibility and Management (FRBM) Act – remains. “The final figure for FRBM lending to Telangana is not yet clear, a senior official told Express on condition of anonymity.

Meanwhile, KCR held another review meeting with TRS MPs in Delhi on Thursday on the third consecutive day. According to party sources, Rao’s main goal was to ensure a healthy FRBM limit. State government officials were in contact with the Ministry of Finance regarding FRBM loans.

“Telangana Ministry of Finance officials are asking for clarification and our officials are answering all their questions. The state government has requested the Ministry of Finance to implement its conditions on FRBM loans with prospective and not retroactive effect,” said Deputy Chairman of the State Planning Board, B Vinod Kumar.

The state government has proposed to increase the loan by Rs 53,000 crore in the current financial year. However, Finance Minister T Harish Rao recently said that the Center has reduced the market borrowing limit by Rs 19,000 crore. “However, there is still no clarity on the FRBM limit. Without clarity on the amount of FRBM loans, planning for the year would go haywire,” officials said.

At the same time, the CM also reviewed outstanding loans from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). The state received 80 percent of the proposed loan from these institutions. Only 20% of the sanctioned amount is pending. At this stage, the PFC and the REC wanted the State to take a counter-guarantee from the RBI.

“The delay in approving the agreed loan amount is a serious concern. The irrigation projects are at various stages. Any delay in the release of the loans will hamper the work of the projects,” the Special Chief Secretary ( irrigation) Rajat Kumar to Express.He said the Chief Minister will take a final call on how to proceed for the non-release of 20% of the loan agreed by PFC and REC.

HYDERABAD: Chief Minister K Chandrasekhar Rao’s plan to stay in Delhi during the monsoon parliamentary session to push for the resolution of outstanding state issues appears to be paying off. However, the main concern – the borrowing limit under the Fiscal Responsibility and Management (FRBM) Act – remains. “The final figure for FRBM lending to Telangana is not yet clear,” a senior official told Express on condition of anonymity. Meanwhile, KCR held another review meeting with TRS MPs in Delhi on Thursday on the third consecutive day. According to party sources, Rao’s main goal was to ensure a healthy FRBM limit. State government officials were in contact with the Ministry of Finance regarding FRBM loans. “Telangana Ministry of Finance officials are asking for clarification and our officials are answering all their questions. The state government has requested the Ministry of Finance to implement its conditions on FRBM loans with prospective and not retroactive effect,” said Deputy Chairman of the State Planning Board, B Vinod Kumar. The state government has proposed to increase the loan by Rs 53,000 crore in the current financial year. However, Finance Minister T Harish Rao recently said that the Center has reduced the market borrowing limit by Rs 19,000 crore. “However, there is still no clarity on the FRBM limit. Without clarity on the amount of FRBM loans, planning for the year would go haywire,” officials said. from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) The State has received 80 percent of the proposed loan from these institutions Only 20 percent of the sanctioned amount is pending At this stage, the PFC and The REC wanted the state to take a counter-guarantee from the RBI. “The delay in approving the agreed loan amount is a serious concern. Irrigation projects are at various stages. Any delay in disbursing the loans will hamper the works of the projects,” Special Chief Secretary (Irrigation) Rajat Kumar told Express. He said the Chief Minister would take a final call on how to proceed for the non-release of 20% of the loan agreed by PFC and REC.

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