Vundavalli questions huge loan for civic bodies

Rajamahendravaram: Former MP Vundavalli Arun Kumar questioned the state government as to what prompted it to take Rs 12,600 crore loan for municipalities urgently. 

Speaking to reporters at Anam Rotary hall here on Thursday, the former MP said the government signed MOU with banks in this regard after passing resolution in the Cabinet.

Alleging that the government had taken this decision to benefit contractors, he said crores of rupees were being spent on temporary constructions in Amravati.  

He said AP Planning Commission vice-chairman Ch Kutumba Rao had not responded to his queries on Amaravati bonds. “In the name of Cabinet decision, the government is spending money lavishly, he said.

He questioned how can the government supply water from Polavaram project where only 58 per cent of works were completed. Main dam construction works had not commenced so far, he added.