Telangana government has not taken any loan from banking institutions outside India, while Andhra Pradesh continues to bring finances from World Bank, Asian Development bank and other such banks outside India.
As per the reports in DC, in a meeting with World Bank officials this week wherein officials had to discuss their proposals for state and the funding required, Telangana did not propose any project. On the other hand, Andhra Pradesh sought Rs 4700 crore loan for roads, drinking water, power and flood management of the new capital Amaravati.
The newly formed state is tuning funds from Indian Financial institutions and corporations because they need loans off budget and the interest rates are same as that of World Bank. Additionally, there will be a lot of intervention from World bank and Central government related to machinery and finances.
However, taking loans from institutions abroad are on budget and comes under FRBM (Fiscal Responsibility and Budget Management act) which the Telangana state government wants to avoid
