Hyderabad: Telangana has urged the Centre to reduce interest rates on ₹16,000 crore in irrigation loans sanctioned during the previous BRS regime. State Irrigation Minister Uttam Kumar Reddy made the appeal during a meeting with Rural Electrification Corporation (REC) CMD Jitendra Srivastava in Delhi on Wednesday.
The state wants the interest burden lowered and repayment terms extended, citing high rates and short tenures agreed under the former government. Minister Reddy argued that the existing terms have made repayments unsustainable, and a reduction in interest would allow the state to allocate resources more efficiently.
According to a statement by the minister, relaxed repayment conditions would also help expedite the completion of complex irrigation projects and improve support for farmers. REC CMD and senior officials reportedly responded positively and assured the proposal would be examined.
Telangana Special Chief Secretary (Finance) Sandeep Kumar Sultania accompanied the minister during the meeting.
