Bhatti seeks special assistance of ₹5,000 crore under SASCI scheme

The Telangana Government has requested the Central Government to sanction a special financial assistance of ₹5,000 crore under the Scheme for Special Assistance to State for Capital Investments.

The State requested the amount over and above the allocation of ₹4,208 crore made to the State under SASCI as interest free loan of 50-year tenure. The Government plans to utilise the amounts towards major investments planned for developmental works including reforms in the education sector.

Deputy Chief Minister Mallu Bhatti Vikramarka made the request to Union Finance Minister Nirmala Sitharaman when he called on her at New Delhi on Wednesday. The meeting discussed about the investments planned by the State in different sectors, capital expenditure and works taken up for strengthening basic amenities in the State. Explaining the Union Minister about the Government’s initiatives, the Deputy Chief Minister said State required additional financial assistance for effective implementation of the schemes.

He said the State was facing financial stress on account of debt servicing of loans obtained by the previous Government from 2014-23 through special purpose vehicles. Government was however continuing to make heavy investments in education, health, rural infrastructure and human resources development sectors. It was committed to provide education of global standards to students through the Young India Integrated Residential Schools. Investments were being made in rural infrastructure and health sectors as they would go a long way in ensuring stable development.

Mr. Vikramarka submitted a memorandum to Ms. Sitharaman explaining about the initiatives taken up for revolutionising education sector involving an investment of ₹30,000 crore. It was planned to spend ₹21,000 crore for 105 residential schools and another ₹9,000 crore would be spent on improving amenities in other educational institutions. He thanked the Central Government’s Department of Economic Affairs for giving its nod to ₹4,049.11 crore loan from Asian Development Bank, ₹4,903.44 crore from Asian Infrastructure Investment Bank for the residential schools project and education infrastructure upgradation mission.

He requested the Central Government to exempt the two loans from the purview of the Fiscal Responsibility and Budget Management Act considering them as investments for the future rather than loans.