Telangana Govt rules out administrative and financial motives behind GHMC trifurcation

The Telangana Government has ruled out administrative and financial motives behind the trifurcation of the Greater Hyderabad Municipal Corporation (GHMC) and dismissed the speculation that it is planning to raise fresh debt through the newly proposed entities.

The Industries and IT Minister D. Sridhar Babu refuted the main Opposition Bharat Rashtra Samithi’s (BRS) charge that the Government was planning to engage external consultancies or merchant bankers to facilitate new loans to the GHMC. “In fact, the indiscriminate borrowing by the previous BRS Government has mandated restructuring of debts. Chief Minister A. Revanth Reddy has been holding consultations with bankers and other institutions on restructuring of the loans so that there will be reduction in the interest burden,” he said replying to a query in the Legislative Assembly on Monday (January 5, 2025).

GHMC’s outstanding debt is ₹4,717.81 crore

He said that the total outstanding debt of the GHMC was ₹4,717.81 crore as at the end of December and the present Government had not accrued any debt in the last 12 months. The previous Government went ahead to borrow ₹6,401 crore between 2018 and 2023 at higher interests and the present Government had initiated steps to reduce the burden. “We are trying to bring in discipline in the departments for prudent fiscal management,” he said.

He launched a trenchant attack on the main Opposition for boycotting the proceedings claiming it reflected their commitment towards the people. The intent of the opposition party could be seen from the fact that its members were not present when the ruling party made a presentation on the Krishna waters. “They make presentation outside the Assembly instead of raising the issues in the House which is in session,” he said.

The Minister took strong exception to the manner in which the BRS members cast aspersions on the Assembky Speaker, G. Prasad Kumar, and urged the Chair to initiate appropriate action against them.