Latest news with #APMDC
Time of India
5 days ago
- Business
- Time of India
Andhra lacks fiscal discipline, picks up debts through NCDs at high interest rate: Ex-CM YS Jagan Mohan Reddy
Former Chief Minister YS Jagan Mohan Reddy has accused the current Andhra Pradesh government of financial mismanagement. He claims the state is in trouble due to a lack of fiscal discipline and disregard for the Constitution. Reddy highlighted the Andhra Pradesh Mineral Development Corporation's (APMDC) issuance of Non-Convertible Debentures (NCDs), or bonds, at a 9.30% interest rate. He stated this is 2.60% higher than the prevailing State Development Loan (SDL) rate. In a social media post addressed to Union Finance Minister Nirmala Sitharaman and the Prime Minister's Office, Reddy said that APMDC concluded its second NCD issuance, raising Rs 5,526 crore and bringing the total to Rs 9,000 crore on Wednesday, June 25. — ysjagan (@ysjagan) According to Jagan, 'The govt went ahead with the issuance of NCDs despite the matter being admitted by the AP High Court and notices served. It is quite apparent that the proceeds of the issuance would be utilized for financing government revenue expenditure.' Reddy explained that the current government is allowing private companies to access the state's consolidated fund through a Reserve Bank of India (RBI) direct debit mandate. He argues this allows private parties to withdraw funds from the state treasury without state government official oversight. He believes this violates articles 203, 204, and 293(1) of the Constitution of India. Reddy also criticised the government for mortgaging mineral wealth worth Rs 1,91,000 crore for NCD issuances totaling Rs 9,000 crore. Live Events He estimates the high interest rate will add Rs 235 crore to APMDC's yearly expenses, with the NCDs having a 10-year term. He claims that the current government's borrowing in the last 13 months has exceeded 50% of the borrowing done by the previous government over five years.
Hans India
5 days ago
- Business
- Hans India
Jagan slams TDP-led govt for lack of fiscal discipline
Vijayawada; YSRCP president Y S Jagan Mohan Reddy on Thursday, criticised the TDP-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. He 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 CM alleged that in total disregard to the constitutional provisions, the 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.
Time of India
6 days ago
- Business
- Time of India
Jagan: Govt pushing state into ‘debt trap'
Vijayawada: Former chief minister on Thursday alleged that the state govt's lack of fiscal discipline and disregard for constitutional framework is pushing the state into a debt trap. Tired of too many ads? go ad free now He said the APMDC non-convertible debentures (NCDs) bonds were issued at a coupon (interest) rate as high as 9.30%, which is 2.60% higher than the prevailing SDL rate. In a post on microblogging platform X, tagging Union finance minister Nirmala Sitaraman and the PMO, Jagan alleged that APMDC concluded the second tranche of its NCD (bond) issuance at a coupon (interest) rate of 9.30% to raise 5,526 crore, taking the aggregate value of the issuance to 9,000 crore on Wednesday (June 25). He said this is second instalment of APMDC going for NCDs in violation of treasury rules. "The govt went ahead with the issuance of NCDs despite the matter being admitted by the AP high court and notices served. It is quite apparent that the proceeds of the issuance would be utilized to finance govt revenue expenditure," he said. He further stated that the TDP-led NDA govt granted private parties access to the consolidated funds 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 govt officials. He alleged that it was a blatant violation of articles 203, 204 and 293(1) of the Constitution of India. The govt also mortgaged mineral wealth worth 1,91,000 crore for NCD (bond) issuances of aggregate value 9,000 crore, Jagan further claimed. He alleged that the additional yearly burden on APMDC is to the tune of 235 crore due to the high interest rate, and the term of NCDs is understood to be 10 years. With NCD issuance, the total budget and off-budget borrowings availed and secured in this 13-month period by the TDP alliance govt exceeded 50% of what was borrowed by the previous govt over a five-year period, the YSRCP chief alleged.
India Today
6 days ago
- Business
- India Today
Jagan Reddy accuses Andhra Pradesh government of Rs 9,000 crore bond scam
Former Andhra Pradesh chief minister YS Jagan Mohan Reddy, has accused the ruling Telugu Desam Party (TDP) alliance government of gross financial mismanagement and constitutional violations in connection with the recent non-convertible debenture (NCD) issuance by the Andhra Pradesh Mineral Development Corporation (APMDC).In a post on X, Jagan Mohan Reddy alleged that the current government displayed 'a lack of fiscal discipline and disregard for the Constitutional framework'. He pointed to the second tranche of NCDs issued by APMDC on June 25, which raised Rs 5,526 crore at a coupon rate of 9.30 per cent. With this, the total amount raised through bond issuances stands at Rs 9,000 contended that the issuance went ahead despite the matter being sub judice, with the Andhra Pradesh High Court having admitted the case and notices having been served. He alleged that the funds were intended to finance the government's revenue expenditure, in breach of constitutional guidelines. He further claimed that the TDP alliance government had, in an 'unprecedented manner', enabled private entities to gain direct access to the Consolidated Fund of the State through a Reserve Bank of India (RBI) direct debit mandate. According to him, this allowed private parties to withdraw money from the state treasury without the involvement of government officials — a move he described as a 'blatant violation' of Articles 203, 204, and 293(1) of the Constitution of additional security for the bonds, the government allegedly mortgaged mineral assets valued at Rs 1.91 lakh crore to back NCD issuances of just Rs 9,000 crore. Reddy criticised the disparity, suggesting that the bonds were more securely backed than even the State Development Loans (SDLs) but were still floated at an unusually high interest questioned why, despite such high-value security, the APMDC bonds bore a 9.30 per cent coupon rate — 2.60 per cent higher than the prevailing SDL rate — resulting in an additional annual burden of Rs 235 crore. Over the 10-year tenure of the bonds, this would amount to a substantial financial load on the public sector Andhra Pradesh Chief Minister N Chandrababu Naidu in his post, Jagan demanded, 'Can @ncbn Garu answer as to who pocketed this?'He concluded by noting that the total budgetary and off-budget borrowings under the TDP alliance in the past 13 months had already exceeded 50 per cent of the borrowings incurred by the previous government over its entire five-year term.- Ends IN THIS STORY#Andhra Pradesh
Time of India
6 days ago
- Business
- Time of India
Andhra Pradesh lacks fiscal discipline, picks debts through NCDs at higher interest rate: Ex-CM YS Jagan Mohan Reddy
VIJAYAWADA: Former chief minister and YSRCP supremo YS Jagan Mohan Reddy has charged that the state government's lack of fiscal discipline and disregard for the constitutional framework has pushed the state into big trouble. He said that the APMDC NCDs (bonds) were issued at a coupon (interest) rate as high as 9.30%, which is 2.60% higher than the prevailing SDL rate. In a social media post tagging union finance minister Nirmala Sitaraman and other PMO, Jagan Mohan Reddy alleged that they have learnt that APMDC concluded the second tranche of its NCD (bond) issuance at a coupon (interest) rate of 9.30% and raised Rs. 5,526 crores, taking the aggregate value of the issuance to Rs. 9,000 crores on Wednesday (June, 25). 'The govt went ahead with the issuance of NCDs despite the matter being admitted by the AP High Court and notices served. It is quite apparent that the proceeds of the issuance would be utilized for financing government revenue expenditure,' said Jagan. He explained that the TDP alliance 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Perdagangkan CFD Emas dengan Broker Tepercaya IC Markets Mendaftar Undo He said that it was a blatant violation of articles, 203, 204 and 293(1) of the Constitution of India. In a manner unheard of, the govt also mortgaged mineral wealth worth Rs. 1,91,000 crores for NCD (bond) issuances of aggregate value Rs. 9,000 crores. He said that with permission to access state consolidated fund and mortgage of govt property of disproportionately huge value, one would imagine that these bonds are even more secure than the SDLs (State Development Loans) issued by the state government. He alleged that the additional yearly burden on the APMDC is to the tune of Rs. 235 crores, owing to the high interest rate and the term of NCDs is understood to be 10 years. With NCD issuance, the total budget and off-budget borrowings availed and secured in this 13-month period by the TDP alliance govt exceeded 50% of what was borrowed by previous govt over a 5-year period.
