Hyderabad: The dispute over sharing of the Rs 8,653-crore Central government loan (of the undivided state) between AP and Telangana is yet to be solved.
During a recent meeting between finance department officials of the two states, when the AP government asked the TS government to reimburse its share of the Central loan, the latter came with a fresh argument.
It said that after division, some Central government departments like rural development, panchayat raj and others got Rs1,600 crore in the common account. It asked AP to settle these funds first.
The AP government said that it was paying Rs 150 crore every month to the Centre towards loan and interest and asked the Telangana government to reimburse its share. However, the latter asked the AP government to first list the projects for which the funds had been spent.
Meanwhile, AP Chief Minister N. Chandrababu Naidu had recently written to Prime Minister Narendra Modi and Union finance minister Mr Arun Jaitley, requesting to convert the Central government loans as a grant. However, there has been no response from the Centre yet.
