Telangana Chief Minister K Chandrasekhar Rao since the day he assumed office, was demanding a relaxation in FRBM norms which will allow the state government to go for more loans to fund his ambitious plans. He even toured Delhi on the same issue and met Modi and other big wigs.
The central government reportedly is on the verge of accepting KCR’s request but at the same time asked the state government to take over the debt burden of its own Telangana’s power distribution companies (Discoms), totaling around Rs 4,500 crore as a part of its Financial Restructuring Plan (FRP) for the ailing Discoms across the country.
This is amounts to giving with one hand and taking with the other. This move will not allow KCR with more financial freedom for his ambitious projects and at the same time, Modi will also not have the bad name of not allowing more financial freedom for the revenue surplus state.