AP Govt liquor bonds 4X oversubscribed

Visakhapatnam/ Vijayawada: As the liquor bonds floated by Andhra Pradesh Government get an overwhelming response from the investors, the Opposition parties have mounted attack on YSR Congress Party saying the pre-poll promise for phase-wise prohibition has gone for a toss.

The bonds sought by AP State Beverages Corporation Ltd (APSBCL) has attracted a borrowing of Rs 8,300 crore after AA rating by CRISIL. It has not been made public yet.

Officials contend that the amount will be used to fund welfare schemes.

While the government sought bonds for Rs 2,000 crore, it could get oversubscribed four times more.

Liquor revenue, which was Rs 9,000 crore in 2019-20 went up to Rs 18,047 crore in 2020-21 and Rs 19,500 crore in 2021-22.

Total public debt is expected to increase to Rs 4.39 lakh crore in 2022-23. As per revised estimates for 2021-22, it was Rs 3.90 lakh crore. In addition to that the government stood guarantee for borrowings to the tune of Rs.1.17 lakh crore made by entities like CRDA as on December 31, 2021.

"Fiscal mismanagement is pushing AP into a debt trap. Our State is being converted into Sampoorna Madyapaana Rashtram (complete liquor State)," TDP general secretary Nara Lokesh alleged.

Jana Sena founder Pawan Kalyan and a section of BJP leaders also came down heavily on the government for making a U turn on imposing a ban on liquor sale.

Chief Minister YS Jagan Mohan Reddy on several occasions blamed the TDP rule during 2014-19 and fall in revenue due to Covid-19 for the present financial position.

The Chief Minister during his recent Delhi visit told the Central leaders that debt borrowing was slashed by Rs17,923 crore in last three years due to fiscal wrongdoing by the erstwhile TDP Government.

The State Government has asked the Centre to remove cut in borrowing, sanction more funds to new districts for setting up medical colleges and release revised estimates for Polavaram amounting to Rs 55,548 crore to tide over present situation.