All the loans that were taken in the United State till a day before the state bifurcation are going to be divided between both the Telugu States. To ease the controversies, both the states agreed to divide the loans in to two – General Loans and Project Specific Loans. While the dead lock continues in Project Specific loans, both the states arrived at an understanding regarding general loans.
The general loans will be divided between Andhra Pradesh and Telangana in population ratio which means Andhra Pradesh will walk away with major percentage of loans (53.89%). There are 1,68,144.84 Crores General loans in United AP. Andhra Pradesh will get 96478.19 Crore while Telangana will walk away with 71506.65 Crore loans. United AP had Project specific loans to the tune of Rs 8,928 crore from different foreign financial institutions.
AP wants them to be shared on the basis of project location while Telangana wants them to be as per population ratio. Most of the development projects taken up were in and around Hyderabad city. If the loans are divided on population basis, AP would have to pay Rs 5,096 crore and Telangana Rs 3,641 crore. On the other hand, if AP’s point of view prevails, Telangana will have to pay Rs 5,222 crore and AP Rs 3,705 crore.