NewKerala.com

Key Points

Former Andhra CM Jagan Mohan Reddy has launched a scathing attack on the TDP-led government over alleged fiscal mismanagement. He claims the state is paying Rs 235 crore extra annually due to inflated 9.3% interest rates on APMDC bonds. Reddy accuses the government of violating constitutional provisions by allowing private access to state funds. The YSRCP leader also alleges disproportionate mortgaging of mineral wealth worth Rs 1.91 lakh crore for just Rs 9000 crore bonds.

Key Points: Jagan Mohan Reddy Slams TDP Govt Over APMDC Bond Controversy

  • Jagan alleges 9.3% interest rate on APMDC bonds burdens state with Rs 235 crore yearly
  • Questions Chandrababu Naidu on who benefited from high-interest deal
  • Accuses TDP of mortgaging Rs 1.91 lakh crore mineral wealth for Rs 9000 crore bonds
  • Claims off-budget borrowings exceed 50% of YSRCP's 5-year total
3 min read

Jagan Mohan Reddy hits out at TDP-led Andhra govt for lack of fiscal discipline

Former Andhra CM Jagan Mohan Reddy accuses TDP-led govt of fiscal mismanagement, questions Rs 235 crore extra burden from high-interest bonds

"This is a blatant violation of Articles 203, 204 and 293(1) of the Constitution - Jagan Mohan Reddy"

Amaravati, June 26

YSR Congress Party President and former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy, on Thursday, criticised the Telugu Desam Party-led NDA government for what he called lack of fiscal discipline and disregard for the constitutional framework.

He alleged that the Andhra Pradesh Mineral Development Corporation (APMDC) non-convertible debentures (bonds) were issued at a coupon (interest) rate of 9.3 per cent, which is 2.6 per cent higher than the prevailing state development loan (SDL) rates.

Jagan Mohan Reddy posted on social media platform X that owing to the high interest rate, the additional yearly burden on the APMDC is to the tune of Rs 235 crore.

He asked Chief Minister N. Chandrababu Naidu to explain who pocketed this amount.

"It is learnt that, on June 25, 2025, APMDC concluded the second tranche of its NCD (bond) issuance at a coupon (interest) rate of 9.3 per cent and raised Rs 5,526 crore, taking the aggregate value of the issuance to Rs 9,000 crore. This is despite the matter being admitted by the Andhra Pradesh High Court and notices served. Further, it is quite apparent that the proceeds of the issuance would be utilised for financing government revenue expenditure," he posted on X, tagging Union Finance Minister Nirmala Sitharaman, Prime Minister's Office and others.

"Despite this, the APMDC NCDs (bonds) were issued at a coupon (interest) rate as high as 9.30 per cent, which is 2.6 per cent higher than the prevailing SDL rate. Owing to the high interest rate, the additional yearly burden on the APMDC is to the tune of Rs 235 crore and the term of NCDs is understood to be 10 years."

The former Chief Minister alleged that in total disregard to the constitutional provisions and in an unprecedented manner, the TDP-led NDA government granted private parties, access to the consolidated fund of the state through RBI direct debit mandate, owing to which, private parties can access the state exchequer and withdraw funds without any requirement of any action from the state government officials.

This, he said, is a blatant violation of Articles, 203, 204 and 293(1) of the Constitution of India.

"As an additional security for the NCDs (bonds), in a manner unheard of, the TDP government also mortgaged mineral wealth, which is government property worth Rs 1,91,000 crore for NCD (bond) issuances of aggregate value Rs 9,000 crore," the former Chief Minister added.

"With such permission to access state consolidated fund and mortgage of government property of disproportionately huge value, one would imagine that these bonds are even more secure than the SDLs issued by the state government," Jagan Mohan Reddy said.

The YSRCP President added that with this NCD issuance, the total budget and off-budget borrowings availed and secured in this 13-month period by the TDP-led NDA government exceeded 50 per cent of what was borrowed by previous YSRCP government over a five year period.

- IANS

Share this article:

Reader Comments

Here are 6 diverse Indian perspective comments for the article:
R
Rajesh K.
Jagan Reddy is absolutely right to question these financial irregularities. Paying 9.3% interest when SDL rates are lower makes no sense. Taxpayers' money is being wasted! Naidu government must answer where this extra ₹235 crore per year is going.
P
Priya M.
Both TDP and YSRCP have made mistakes in AP's finances. While Jagan has valid points, his own government wasn't perfect either. We need more transparency from all parties 🤔
S
Suresh T.
Mortgaging mineral wealth worth ₹1.91 lakh crore for just ₹9000 crore bonds? This sounds like daylight robbery! Centre should immediately investigate this matter before Andhra's resources are looted.
A
Ananya R.
As someone from Andhra, I'm worried about our state's financial future. Both parties keep blaming each other while common people suffer. When will we get leaders who actually care about development rather than politics? 😔
V
Vikram S.
The RBI direct debit mandate for private parties is shocking! How can any government allow direct access to state funds without proper checks? This sets a dangerous precedent for other states too.
K
Kavita J.
While Jagan Reddy's concerns seem valid, he should present his arguments through proper channels rather than social media. Such serious allegations need proper investigation, not Twitter wars. Hope the courts take suo moto notice of this.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50