Telangana's Bold Bond Move: Controversy Surrounds Land Collateral

The Telangana Industrial Infrastructure Corporation raised Rs 10,000 crore via bonds using 400 acres of land as collateral. Minister D Sridhar Babu addressed allegations surrounding ICICI Bank and land ownership disputes. The move, amidst political tensions and environmental concerns, is under judicial scrutiny.

The Telangana Industrial Infrastructure Corporation (TGIIC) raised nearly Rs 10,000 crore through senior secured taxable redeemable bonds, featuring the contentious use of 400 acres of land as collateral. The bonds are rated and listed, ensuring transparency, with Rs 8,476 crore credited to the TGIIC account from the bond sales.

At a press conference, Industries Minister D Sridhar Babu clarified the use of bond proceeds for state welfare, including farm loans, Rythu Bharosa, and agricultural bonuses. He rebuffed allegations from BRS Working President Rama Rao, stressing that ICICI Bank only maintained an escrow account without extending loans to the government.

As local and national entities scrutinize the move, environmental concerns surface over IT infrastructure development plans for the land, leading to ongoing legal debates in Telangana High Court and the Supreme Court. Meanwhile, Minister Babu criticized political opponents for misleading narratives on the land's status and valuation.

(With inputs from agencies.)