Controversy Over Telangana's Rs 10,000 Crore Bond Issue

The Telangana Industrial Infrastructure Corporation raised nearly Rs 10,000 crore through debentures using 400 acres of land as pre-collateral. The funds supported welfare schemes, but faced criticism over land ownership disputes. Allegations arose from opposition parties about misuse and ecological impact, leading to legal interventions.

In a strategic financial move, the Telangana Industrial Infrastructure Corporation secured nearly Rs 10,000 crore through a private placement of senior secured debentures, backed by land collateral. The proceeds were directed towards multiple welfare initiatives such as farm loan waivers, much to the criticism of opposition parties.

Amidst controversy, Industries Minister D Sridhar Babu clarified that ICICI Bank, merely an escrow account manager in the process, did not extend any loans. Furthermore, he assured the legality of land ownership, as validated by a Supreme Court ruling.

The issuance has ignited protests from both political rivals and students concerned about potential ecological impacts. The matter is under judicial scrutiny, with allegations of improper land valuation and environmental degradation further marring the ambitious infrastructure project.

(With inputs from agencies.)