Minister Uttam Kumar Reddy Orders Irrigation Loan Restructuring to Save Rs 250 Crore
The Telangana state government has initiated a plan to restructure loans obtained by various irrigation corporations to reduce financial pressure and facilitate the raising of fresh loans. Following a review meeting held on Sunday in Hyderabad, Irrigation Minister N Uttam Kumar Reddy directed senior officials to prepare a comprehensive financial action plan within 10 days to execute these changes. The refinancing initiative is expected to save the state nearly Rs 250 crore annually.
The restructuring effort aims to lower the interest burden on existing loans, which currently carry interest rates of around 11 percent. By refinancing these loans at lower rates, the government hopes to ease its financial liabilities. Minister Reddy emphasized that these measures are designed to reduce the interest burden without placing any additional financial burden on local farmers.
To decrease the irrigation corporations' dependence on state budgetary support, the Minister instructed officials to explore sustainable new revenue models. Proposed measures include setting up solar power projects on vacant lands owned by the corporations, leasing out unused land, and examining the feasibility of renewable energy projects near reservoirs such as Nizam Sagar.
The Minister stressed that all proposals must undergo legal scrutiny before implementation to ensure they do not adversely affect farmers. To facilitate resource mobilization, he directed officials to compile a comprehensive list of all departmental lands and assets within 15 days.
Officials were also instructed to prepare project-wise reports detailing existing loans, interest rates, repayment schedules, work progress, and the funds required for completion. The government plans to prioritize projects that can be finished quickly with minimal investment.
During the meeting, Minister Reddy ordered the immediate completion of statutory audits for the 2022-23 financial year and all other pending financial years, asking officials to expedite the appointment of auditors. He also directed that compensation already released for land acquisition must reach farmers without any delay.
