- Telangana government plans to take over GHMC loans after civic body division
- Debt burden of GHMC grew due to Hyderabad infrastructure projects
Hyderabad, March 5: The Telangana government is reportedly preparing to take over the loans of the Greater Hyderabad Municipal Corporation (GHMC). Officials said the state government is considering a plan to assume responsibility for the civic body’s debt of about Rs 4,780 crore.
This move comes after the government recently issued orders to divide the GHMC area into three separate municipal corporations as part of Hyderabad’s administrative restructuring. After the decision, authorities also formed a task force committee to examine how the existing loans should be distributed among the new corporations.
However, officials believe that dividing the debt among the three newly formed civic bodies could create serious financial difficulties. Therefore, the state government is likely to take full responsibility for repaying the loans. This step may help the new corporations function without financial pressure in the initial phase.
Meanwhile, the rising infrastructure needs in Hyderabad had already placed a heavy burden on GHMC finances. Since 2014, the civic body borrowed nearly Rs 7,000 crore to develop infrastructure across the city. These projects included the construction of flyovers, underpasses, and new drainage systems aimed at improving urban mobility and public services.
As a result, GHMC has been paying nearly Rs 100 crore every month as interest on these loans for the past two years. In addition, several funds expected from the state government are still pending. Because of these financial pressures, officials suggested that the state government should directly take over the debt burden.
If implemented, the decision could reduce financial stress on the newly formed corporations. It may also allow them to focus more on civic development and service delivery across Hyderabad without worrying about past debts.
Further clarity on the government’s final decision is expected soon.
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