Controversy Erupts Over APMDC Bonds in Andhra Pradesh

YSRCP criticizes Andhra Pradesh's plan to issue bonds through the APMDC, claiming it undermines democratic norms and future financial stability. The opposition highlights issues of off-budget borrowings, transparency, and constitutional violations, questioning fiscal management and prioritization of private over public interests.

Controversy has erupted in Andhra Pradesh over the state government's decision to issue bonds through the Andhra Pradesh Mineral Development Corporation (APMDC). The YSR Congress Party (YSRCP) has raised objections, labeling the terms as 'undemocratic' and criticizing the potential financial risks involved.

Addressing a press conference, YSRCP leader Buggana Rajendranath Reddy expressed concerns about the state's move to permit private entities to access consolidated funds via non-convertible debentures (NCDs). Reddy claimed such actions bypass necessary legislative oversight and violate constitutional provisions, potentially burdening the state exchequer.

Reddy accused the ruling alliance, led by the TDP, of gross financial mismanagement, arguing that the proposed Rs 9,000 crore loan plan lacks transparency and prioritizes private interests over public welfare. He further criticized the deviation from the previous regime's focus on welfare and prudent spending amid the ongoing COVID-19 crisis.

(With inputs from agencies.)