AP to save Rs 181 crore via debt swap

The state government is likely to save Rs 181 crore by going in for debt-swap to reduce interest burden during this fiscal.

"During the last three months, the state government has secured some new loans with low interest rates and we have used this money to clear some of the high cost loans. With this measure, the government will save Rs 181 crore on interest payments during this year," K Rosaiah, state finance minister, said at a media conference here.

"The government is still paying 13-14 per cent interest on some loans, but in the market we can generate loans at a rate of 6-7 per cent. Our aim is to clear the high cost loans gradually. In the current budget, the government earmarked around Rs 8,400 crore for interest payments," Rosaiah said.

"The Congress government is not averse to taking loans from the World Bank or any other financial institutions, but we will not undermine the interests of the people in getting the loans and we will use these funds for creating infrastructure facilities and taking up irrigation and power projects," he answered a query.

According to the finance minister, the state government is observing strict discipline in fiscal management.

During the last 100 days, the government has not used the overdraft facility from the Reserve Bank of India even once, whereas during the last fiscal, the previous Telugu Desam government used the overdraft facility for 336 days, the state finance minister said.

"At present, our state's revenue deficit is about Rs 2,200 crore. As the finance minister, my target is to ensure that the revenue deficit is at zero level in the next three to four years, and then I will try to create some revenue surplus," he said.

To a query, he said the government was taking all steps to collect dues from Kakinada Sea Port Company which was operating Kakinada Deep Water port.