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It's A Habit With Naidu!

It's A Habit With Naidu!

In a classic case of financial mismanagement, the Andhra Pradesh government went short of funds and ended up availing an overdraft from the Reserve Bank of India (RBI) as it had paid Rs 2,067 crore to industrialists in one go in March.

As a result, it ended up paying Rs 8.01 crore as interest to the RBI for Rs 5,000 crore it availed as overdraft for five days.

Highlighting the mismanagement, finance officials point to the last minute release of Rs 2,067 crore as incentives to industrialists. Though these incentives have been pending for more than a decade, the TDP government released the funds in one lot without considering the consequences.

The incentives include reimbursements of value-added tax, stamp duty and power subsidy. Most industries which received the incentives are allegedly close to the TDP government and also supported the party during the general elections.

Textile, spinning mills, sugar factories, jute, tobacco and aqua units are said to have benefited most with the last minute release of funds.

About 3,000 units received their dues in March. Under criticism from the opposition for releasing the funds in one lot, Naidu government said that the situation was inevitable as these were funds pending for more than a decade. Hence they were forced to go in for an overdraft, says the TDP.

Had it not been for the poor finances of the State, they wouldn’t have needed an overdraft is their contention. But this is not correct.

During the 10 year Congress rule, there was not even a single instance of overdraft whereas prior to that during the TDP regime, they had availed of the overdraft on many occasions. So, this is not a one- time thing with Naidu. It is a habit with him.

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