In a significant move to stabilise Andhra Pradesh’s finances, Chief Minister N Chandrababu Naidu announced on Friday that the state has successfully rescheduled nearly ₹50,000 crore in high-interest debt. Speaking at the State Level Bankers Committee (SLBC) meeting at the Secretariat, Naidu explained that this restructuring — part of a larger effort to address ₹2 lakh crore in identified debt — has already saved the state treasury ₹1,108 crore.
The Chief Minister didn't miss the chance to take a jab at the previous YSRCP administration, accusing them of borrowing recklessly at inflated interest rates. He stated that the government may benefit from cheaper capital by increasing the creditworthiness of the state and that this “financial health” should be passed on to the people by ensuring that banks provide stronger support to MSMEs and larger amounts to SC, ST, and BC segments for bridging the wealth gap between people.
The meeting also leaned heavily into future-tech and infrastructure. In a notable development, Union Bank of India representatives committed to backing startups emerging from the Ratan Tata Innovation Hub (RTIH) in Amaravati. Naidu’s vision for the capital city includes turning it into a premier financial district; he pointed out that foundations for 15 bank offices have already been laid and pushed for their rapid completion.
Beyond the corporate talk, the CM had a direct message for the public: stay away from private moneylenders. He urged farmers and small business owners to stick to formal banking for their credit needs to avoid the debt traps often found in the unorganised sector. He also signaled that renewable energy is the next big frontier for credit, asking banks to be more "generous" with loans for green energy projects that align with central and state priorities.
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