Vijayawada: Deputy Chief Minister and Panchayat Raj Minister K Pawan Kalyan has raised concerns over Andhra Pradesh’s financial credibility, citing mismanagement by the previous government. He noted that financial institutions are now hesitant to support the state in road and infrastructure projects due to past fund misappropriation.
The Andhra Pradesh government aims to develop 7,213 km of village roads at an estimated cost of Rs. 4,976 crores. To achieve this, they are seeking support from the Union government and international agencies. In a recent meeting with the Asian Infrastructure Investment Bank (AIIB), Pawan Kalyan was dismayed by the bank officials’ comments regarding the state’s financial reputation.
“The previous government failed to provide matching grants for projects and diverted funds for other purposes,” Pawan stated. “We are now burdened with huge debt, and financial institutions are hesitant to invest in our road projects. They are asking us to invest first and promising reimbursement later. We have never faced such a situation before.”
Despite these challenges, the state government is determined to proceed with rural infrastructure projects. Pawan Kalyan revealed plans to invest Rs. 200 crores monthly in road projects across rural areas, with the intention of seeking reimbursement from financial agencies. He emphasized the need for the government to work with unwavering commitment for at least a year to rebuild trust with financial institutions.
The current administration’s focus is on restoring Andhra Pradesh’s financial credibility and ensuring that infrastructure projects receive the necessary funding, aiming to rectify the damage done by the previous regime and pave the way for sustainable development in the state.
