The Telengana (TS) government has lined up several infra projects in Hyderabad and Tier-II cities such as Warangal, Karimnagar, Khammam but these have not moved forward due to paucity of funds.
The TS government wants to tap the savings of the state NRIs by offering attractive interest rates. For this, it needs to obtain permission from the Centre.
The Centre had in the late 1990s introduced the SBI Resurgent India Bonds to raise revenues from overseas players for the infrastructure sector but withdrew it later.
The TS government is planning to offer 10% interest on it’s infra bonds. States like Gujarat and Kerala are also seeking the Centre’s permission to issue infra bonds to NRIs.
NRI affairs minister K T Rama Rao said they already took up the issue with external affairs minister Sushma Swaraj who responded positively and advised them to approach the Union Finance ministry. “I already took up the issue with external aff-airs minister Sushma Swaraj. She responded positively and advised us to approach the Union finance ministry. I will soon meet Arun Jaitely and seek permission to issue infra bonds”, informed the state NRI affairs minister.