Lok Sabha Question No. 970 (UNSTARRED), answered on 2015-12-04
Subject: Repayment of Loans
Ministry: FINANCE
Asked by: J.C. DIVAKAR REDDY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE PLAN FINANCE-I DIVISION

## LOK SABHA UNSTARRED QUESTION NO. 970

TO BE ANSWERED ON FRIDAY THE 4 th  DECEMBER 2015 /13 AGRAHAYANA, 1937 (SAKA)

## REPAYMENT OF LOANS

## 970. SHRI J.C. DIVAKAR REDDY :

Will the Minister of FINANCE be pleased to state:

- a)  the  details  of  loans  to  be  repaid  by  the  Government  of  Andhra  Pradesh  (AP)  to Centre,  World  Bank,  Asian  Development  Bank,  NABARD  and  other  financial institutions and Banks during the last three years and the current year, particularly after the implementation of the Andhra Pradesh State Reorganisation Act, institutionwise; and
- b)  the  projects/works  taken  up  by  the  Government  of  AP  with  such  loan,  institutionwise?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI JAYANT SINHA)

- (a) & (b): Central Government determines and regulates the Net Borrowing Ceiling for each  State  within  their  respective  FD  targets  as  per  formula  prescribed  by  the  Finance Commissions. The repayments of principal on outstanding loans of States are taken care of by  allowing  the  replacement  borrowings  against  repayment  of  loans  within  the  gross borrowing ceiling of the States.
2. The Net Borrowing Ceilings prescribed covers all elements of the Borrowing States, including Open Market Borrowings (State Development Loans), Negotiated Loans, National Small Saving Fund loans(NSSF), loans for EAP, other liabilities  arising  out  of  the Public Accounts Transferring net Small Savings, Provident Funds, and Reserve Funds deposited, etc.
3. After  the  recommendations  of  Twelfth  Finance  Commission  (TFC),  recommending that  disintermediation be  stopped by GoI, the Market loans and the loans from CFIs are raised by the State Governments by themselves. NSSF belong to individual depositor, and any loans raised from the Fund are governed by the Rules of the Fund. The other liabilities arising  out  of  the  public  account  transfer  enumerate  from  the  States  itself.  TFC  further recommended that external assistance may be transferred to State on the same terms & conditions  as  attached  to  such  assistance  by  external  funding  agencies,  thereby  making Govt.  of  India  a  financial  intermediary  without  any  gain  or  loss.  The  external  assistance pass through to States should be managed through a separate fund in a public account.

Accordingly,  loans  to  States  are  being  passed  on  back  to  back  basis  and  on  the  same terms and conditions of the donor agencies. The institution-wise details and the projects/ works taken up is therefore maintained by the respective State Government.

4. The details of the repayment of the following loans, as available with this Ministry during the last three years and the current year, particularly after the implementation of the Andhra Pradesh State Reorganization Act, 2014 are as under:

|                                       |         |         |                     |                               | Rs. in Crore                  | Rs. in Crore                  | Rs. in Crore                  |
|---------------------------------------|---------|---------|---------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|
| Particulars                           | 2012-13 | 2013-14 | 2014-15             | 2014-15                       | 2015-16 (upto November, 2015) | 2015-16 (upto November, 2015) | 2015-16 (upto November, 2015) |
|                                       |         |         | Upto 1 st June 2014 | 2 nd June 2014 to 31 st March |                               |                               |                               |
|                                       | 3401.21 | 2725.92 |                     |                               |                               |                               |                               |
| State Development Loans (source -RBI) |         |         |                     | 2015 2145.62                  | 356.44                        | 356.44                        | 356.44                        |
| NABARD (source -                      | 526.44  | 533.91  | 55.39               |                               |                               |                               |                               |
|                                       |         |         |                     | 516.31                        |                               |                               |                               |
| NABARD)                               |         |         |                     |                               | 1240.09                       | 1240.09                       | 1240.09                       |
|                                       |         |         | 0.00                | 2029.76                       |                               |                               |                               |
| Central Loans                         |         |         |                     |                               |                               |                               |                               |
| including                             |         |         |                     |                               |                               |                               |                               |
|                                       | 2065.16 | 2086.05 |                     |                               |                               |                               |                               |
| EAP loans                             |         |         |                     |                               |                               |                               |                               |

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