Minister pushes for major financial overhaul of Irrigation dept.
The Irrigation Minister of Telangana has ordered a financial restructuring of irrigation corporations to reduce high interest costs and improve self-reliance. Proposed measures include using unused department land for solar projects to generate revenue and hiring financial experts to manage debt.
Why it matters
Restructuring state-owned debt is critical for fiscal health, as reducing interest burdens can free up significant public funds for infrastructure development.
The Irrigation department is working out a comprehensive restructuring of loans borrowed for irrigation projects to make irrigation corporations, including special purpose vehicles, financially self-reliant by strengthening their financial management and reducing borrowing costs.
Minister for Irrigation N. Uttam Kumar Reddy instructed officials to prepare a detailed funding roadmap within 10 days and told them to engage experienced financial professionals to assist in debt restructuring, preparation of funding proposals and improving the corporations’ financial presentation to facilitate access to lower-cost and long-term finance.
He wanted them to work in the direction of reducing dependence on direct budgetary support while focusing on operational revenues and use it for servicing loans and interest liabilities. The meeting shortlisted a few finance models for the corporations, which included revenue from solar projects by making use of unused and suitable lands of the irrigation department.
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