Telangana Government enhanced Total Government Guarantees
- State government guarantees were increased from Rs 18,000 Cr to Rs 1.3 lakh Cr in the previous six years
- State government’s guarantees limit was increased to 200% keeping in mind regarding the massive projects in Telangana
Hyderabad: There will be a quantum leap in the Telangana state government's guarantees to various corporations, which will raise loans for capital works. The State government increased the total government guarantees from 90% of the Total Revenue Receipts (TRR) to 200% recently. This enhancement would give more guarantees to the Musi River Front Development Corporations, Kaleshwaram Corporation and others.
Regarding the topic, official sources explained that the government is taking up several massive projects which require huge funds. That is the reason of the increment from 90% to 200%.
There are also reports that the State guarantees limit was increased keeping in mind regarding the Centre's Electricity Amendment Bill, 2020 to take the power sector from the control of Centre. The sources had clarified that the State government's guarantees limit was increased to 200% keeping in mind regarding the massive projects in Telangana only and that it has nothing to do with the Electricity Amendment Bill, 2020.
The government guarantees until the 2019-20 fiscal was Rs 89,600 Cr. In this year's budget, it was mentioned that the tentative risk-weighted guarantees are estimated at Rs 40,241 Cr.
In this budget, the guarantees for irrigation is Rs 22,380.84 Cr, Rs 12,010.50 Cr is allotted for Mission Bhagiratha and Rs 5,849.98 Cr is for other projects.
The State government's guarantees were increased from Rs 18,000 Cr to Rs 1.3 lakh Cr in the previous six years.