Telugu Desam Party president and Andhra Pradesh chief minister N Chandrababu Naidu, who tried to gain massive publicity for the so-called oversubscription of “Amaravati Bonds” floated by Andhra Pradesh Capital Region Development Authority (APCRDA) for raising funds for the construction of new capital of Amaravati, is now on the defensive.
Despite the wide spread publicity through press conferences by Naidu, his son Nara Lokesh and his ministers, besides the social media campaign by his supporters, there was a huge backlash from the opposition parties and also common people.
While the opposition YSR Congress party expressed apprehension that Naidu was pushing the state into a debt trap with his fancy ideas, people with business knowledge wonder what was so great about getting good response to the public bonds.
In fact, YSRC president Y S Jaganmohan Reddy suspected that the entire exercise of floating bonds was a shady exercise.
“The publicity on oversubscription of Amaravati bonds is a farce as the rate of interest, need and terms of the issue have been shady and questionable,” he said.
An economic expert wonders how the bonds that were issued with a huge interest rate of 10.75 per cent on quarterly basis would be beneficial to the state.
“The state should have tried all the other means of raising funds before going in for public borrowing at such a massive interest,” he said.
With the publicity plan backfiring, the Naidu government is now trying to put up a weak defence.
State planning board vice-chairman C Kutumba Rao sought to blame it on the centre for the state government compelling to go in for public borrowing.
“We have no other way to mobilise r funds with the central government washing its hands off by giving just Rs 1500 crore and the the World Bank delaying sanction of loans due to letters by YSRCP,” he said.