Govt plans overhaul of irrigation debt to raise fresh loans

The Telangana government has begun restructuring loans raised by irrigation corporations and is exploring new revenue sources to reduce financial pressure. Irrigation Minister N Uttam Kumar Reddy said refinancing loans could save nearly Rs 250 crore annually without burdening farmers

Hyderabad: The Congress government has initiated the restructuring of loans obtained through various corporations for irrigation projects and is exploring new revenue streams. Officials have been instructed to prepare a comprehensive financial action plan within 10 days.

Irrigation Minister N Uttam Kumar Reddy, who reviewed the financial status of irrigation corporations with senior officials on Sunday, said these measures were aimed at reducing the interest burden without placing any additional burden on farmers.

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The Minister asked officials to explore sustainable revenue models to reduce the corporations’ dependence on budgetary support. These include setting up solar power projects on vacant lands owned by the corporations, leasing unused land and examining the feasibility of renewable energy projects near reservoirs such as Nizam Sagar.

He stressed that all proposals should undergo legal scrutiny before implementation and should not adversely affect farmers. He directed officials to compile details of all departmental lands and assets within 15 days to facilitate resource mobilisation.

Officials informed him that refinancing existing loans, which currently carry interest rates of around 11 per cent, at lower rates could save nearly Rs 250 crore annually. The Minister instructed officials to prepare project-wise reports detailing loans, interest rates, repayment schedules, work progress and the funds required for completion, while prioritising projects that can be completed quickly with minimal investment.

He also ordered the immediate completion of statutory audits for 2022-23 and all pending financial years and asked officials to expedite the appointment of auditors. He directed officials to ensure that compensation already released for land acquisition reaches farmers without delay.