Lok Sabha Question No. 2833 (UNSTARRED), answered on 2023-08-07
Subject: Development Projects Funded by External Borrowing
Ministry: FINANCE
Asked by: Maddila  Gurumoorthy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2833

DUE FOR ANSWERED ON 7 th  AUGUST, 2023

## DEVELOPMENT PROJECTS FUNDED BY EXTERNAL BORROWING

2833. SHRI MADDILA GURUMOORTHY:

Will the Minister of FINANCE be pleased to state:

- (a) the total quantum of external debt of States, State-wise;
- (b) the details of the development projects in the State of Andhra Pradesh that are being funded by external borrowing from multilateral agencies; and
- (c) the amount of guarantees given by the Union Government to the external debt of States;

## ANSWER

THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) Article 293(1) of the Indian Constitution mandates that the State Governments in India can borrow only from internal sources. Thus, only Government of India can incur external debt, including that which is meant for the projects and programmes of particular States. Accordingly, the State-wise external debt is presented in the following table.
- (b) The  details  of  projects  in  the  state  of  Andhra  Pradesh  that  are  being  funded  by multilateral agencies are presented in the following table.

Table 1: Total Amount of External Debt of States as on 26 July, 2023

|   S. No. | Name of State     | Total amount of External debt (Rs. Crore)   |
|----------|-------------------|---------------------------------------------|
|        1 | Andhra Pradesh    | 11,817.17                                   |
|        2 | Arunachal Pradesh | 34.59                                       |
|        3 | Assam             | 1,025.28                                    |
|        4 | Bihar             | 13,590.24                                   |
|        5 | Chhattisgarh      | 3,595.69                                    |
|        6 | Goa               | 815.41                                      |
|        7 | Gujarat           | 8,307.40                                    |
|        8 | Haryana           | 1,057.47                                    |

| 9   | Himachal Pradesh   | 1,013.59    |
|-----|--------------------|-------------|
| 10  | Jammu &Kashmir     | 2,454.33    |
| 11  | Jharkhand          | 3,799.49    |
| 12  | Karnataka          | 14,580.26   |
| 13  | Kerala             | 8,629.83    |
| 14  | Madhya Pradesh     | 28,391.66   |
| 15  | Maharashtra        | 14,318.79   |
| 16  | Manipur            | 327.21      |
| 17  | Meghalaya          | 228.97      |
| 18  | Mizoram            | 149.59      |
| 19  | Nagaland           | 66.97       |
| 20  | Orissa             | 7,081.91    |
| 21  | Punjab             | 3,457.84    |
| 22  | Rajasthan          | 18,689.72   |
| 23  | Sikkim             | 63.79       |
| 24  | Tamil Nadu         | 32,129.25   |
| 25  | Telangana          | 6,296.00    |
| 26  | Tripura            | 81.80       |
| 27  | Uttarakhand        | 886.39      |
| 28  | Uttar Pradesh      | 9,592.78    |
| 29  | West Bengal        | 14,961.73   |
|     | Total              | 2,07,445.15 |

Source: Department of Expenditure

Table 2: Projects funded by multilateral agencies for Andhra Pradesh

|   S. no. | Name of the Project                                                      | Funding Agency   |   Loan Amount (in US$ million) | Date of Loan effectiveness   | Cumulative disbursement (in US$ million)   |
|----------|--------------------------------------------------------------------------|------------------|--------------------------------|------------------------------|--------------------------------------------|
|        1 | Supporting Andhra's Learning Transformation                              | World Bank       |                          246   | 09.02.2022                   | 71.0 (as of June 30, 2023)                 |
|        2 | Andhra Pradesh Health Systems Strengthening Project                      | World Bank       |                          322.8 | 09.09.2019                   | 222.2 (as of June 30, 2023)                |
|        3 | Andhra Pradesh Integrated Irrigation& Agriculture Transformation Project | World Bank       |                          169.4 | 27.12.2018                   | 27.9 (as of June 30, 2023)                 |
|        4 | Visakhapatnam-Chennai Industrial Corridor Development Program Tranche 1  | ADB              |                          242.8 | 05.05.2017                   | 145.8 (as of June 30, 2023)                |

|   5 | Visakhapatnam-Chennai Industrial Corridor Development Program- Tranche 2     | ADB   |   139.8 | 21.07.2023   | Nil (as of June 30, 2023)    |
|-----|------------------------------------------------------------------------------|-------|---------|--------------|------------------------------|
|   6 | Andhra Pradesh Rural Road connectivity to unconnected habitations            | AIIB  |     455 | 23.04.2019   | 111.14 (as at end July 2023) |
|   7 | Andhra Pradesh Urban Water Supply and Septage management Improvement Project | AIIB  |     400 | 21.05.2019   | 44.69 (as at end July 2023)  |
|   8 | Andhra Pradesh Rural Connectivity (Roads &Bridges)                           | NDB   |     323 | 26.01.2021   | 15.81 (as at end July 2023)  |
|   9 | Andhra Pradesh Mandal Connectivity &Rural Connectivity Improvement Project   | NDB   |     323 | 26.01.2021   | 15.81 (as at end July 2023)  |

Note: ADB: Asian Development Bank; AIIB: Asian Infrastructure Investment Bank; NDB: New Development Bank

(c)  Government  Guarantee  was  provided  to  Mumbai  Metropolitan  Region  Development Authority  (MMRDA-a  State-owned  Organization  of  the  Govt.  of  Maharashtra)  for  Mumbai Trans-Harbour Link Project to avail JICA ODA Loan of JPY 144.795 billion (₹ 9122 crore) in 2017 and further in 2020 for JPY 66.909 billion (₹ 4300 crore) with guarantee fee payable at the rate of 0.5%.

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