The Minister of Industries and Informatics, KT Rama Rao, asserted that the state government is making capital expenditures to improve infrastructure and improve the productivity of assets for future generations.
“Investments in infrastructure should be viewed as capital expenditure and not as debt. It’s the investment for the future, ”he said.
Responding to a question during Question Time in Assembly on Monday, Mr. Rama Rao rejected accusations that the state was being pushed into the debt trap by the current waiver. The current boom in economic activity is due to investments in infrastructure and value creation, he said.
He said the government had decided to take out a loan of 5,900 crore and that an agreement in principle had been reached with the SBI which agreed to grant a term loan to achieve the objectives set under the strategic program. road development.
To a question, he said that the debt service for the proposed loan would be in the range of 296 crore per year and that the government has taken steps to ensure that the GHMC is not burdened by the loan.
He said the government has deployed new technologies for road development in addition to introducing transferable development rights which have saved GHMC 3,000 crore. The state was the first to create the TDR bank and the launch of the SRDP and related work followed brainstorming with experts for more than three years.
A total of 22 works under the SRDP had been completed for an estimated amount of 1,946.9 crore and 24 works (21 by the GHMC and 3 by other departments) were in progress at a cost of 5,693.51 crore. The minister said a detailed schedule had been set for the completion of the work.
Responding to a question from MIM leader Akbaruddin Owaisi, he said work worth 1,545 crore had been undertaken in the Charminar area and was underway.
Some work has been delayed because of the agency, but it would be speeded up in the coming days. At the same time, plans were being prepared for the second phase of the SRDP program, the minister said.