Hyderabad, Apr 24 (PTI) The YSRCP on Thursday objected to the Andhra Pradesh government’s proposed bonds for raising loans through the Andhra Pradesh Mineral Development Corporation Limited (APMDC), calling the terms “undemocratic.”
YSRCP leader Buggana Rajendranath Reddy, addressing a press conference here, criticised the state government’s alleged move to allow private entities access to consolidated funds through off-budget borrowings and bond issuance.
“APMDC’s revenue is much lower than the value of the bonds being issued, and the money raised is being diverted toward revenue expenditure,” Reddy said.
The inclusion of a direct debit clause from the Consolidated Fund is undemocratic and unconstitutional, bypassing legislative oversight and violating multiple provisions of the Constitution,” he alleged.
He claimed that the revenue raised through the Non-Convertible Debentures (NCDs) would burden the state exchequer, increasing liabilities, as it would allegedly not be spent on productive infrastructure.
Reddy said the TDP-led alliance’s alleged plan to raise ₹9,000 crore through APMDC via NCDs highlights gross mismanagement and constitutional violations.
He questioned the AP government’s decision to allow private bond custodians to draw directly from the RBI, claiming it was “unprecedented and a serious breach of democratic norms”.
He added that the NDA coalition’s financial actions contradicted the earlier criticism of similar practices by the previous YSRCP government.
Despite the COVID-19 crisis, the previous regime ensured prudent spending and focused on welfare. The current coalition, he alleged, is now serving private interests at public cost.
He claimed that none of the promised welfare schemes have materialised, and all sections—including farmers and employees—are disillusioned.
The YSRCP leader demanded accountability for the ₹1.40 lakh crore borrowed over the past 10 months, asserting that the funds lack transparency and fail to deliver public benefits.
He argued that APMDC has minimal capital expenditure needs, as its operations are outsourced, yet it is allegedly being pushed into massive debt to fund the government’s revenue spending.
The YSRCP leader said that the debt-to-earnings before interest, Taxes, Depreciation, and Amortisation (EBITDA) ratio would exceed 8.25x, making APMDC’s finances unsustainable and increasing itsdependence on the state government for future debt servicing.
