GHMC debt Rs 4,717.81 crore; no fresh loans taken; trifurcation not for borrowings: Telangana govt

Hyderabad: The Telangana government on Monday informed the Legislative Assembly that the Greater Hyderabad Municipal Corporation’s (GHMC) total outstanding debt stood at Rs 4,717.81 crore as of the end of December 2025.

It stated that no fresh borrowings were made in the last 12 months.

IT minister blames debt burden by previous govt

Industries and IT Minister D Sridhar Babu said the financial stress was a legacy issue, pointing out that the previous government had borrowed Rs 6,401 crore between 2018 and 2023 at higher interest rates.

He also stressed that the present administration was focused on fiscal discipline and prudent financial management across departments.

‘No financial motive behind GHMC trifurcation’

Replying to a query in the Assembly, Minister Sridhar Babu categorically rejected the Opposition Bharat Rashtra Samithi (BRS) allegation that the proposed trifurcation of the GHMC was aimed at raising fresh debt.

He said there was neither an administrative nor a financial agenda behind the move and dismissed speculation that the government intended to float new loans through the proposed civic entities.

The Minister clarified that the government had no plans to engage external consultancies or merchant bankers to facilitate borrowing for the GHMC.

Loan restructuring to cut interest burden

Sridhar Babu said the indiscriminate borrowing by the previous BRS government had made debt restructuring inevitable.

He informed the House that Chief Minister A Revanth Reddy has been holding consultations with bankers and financial institutions to restructure existing loans with the objective of reducing the interest burden on the civic body.

“These efforts are aimed at restoring financial health and ensuring sustainable urban governance,” he said.

Sharp criticism of Opposition boycott

Launching a scathing attack on the main Opposition, the Minister criticised the BRS for boycotting Assembly proceedings while claiming to act in the interests of the people.

He said the party’s intent was evident from the absence of its members when the government made a detailed presentation on Krishna River waters.

“They prefer to make presentations outside the Assembly instead of raising issues on the floor of the House when it is in session,” he remarked.

Remarks against Speaker condemned

Sridhar Babu also took strong exception to what he described as unwarranted aspersions cast by BRS members against Assembly Speaker G Prasad Kumar. He urged the Chair to take appropriate action against those responsible for undermining the dignity of the Legislature.

Transfer of 100 acres of Defence land in final stage

Giving detailed information about the infrastructure development, the Minister said the proposed elevated corridors from Paradise to Dairy Farm and from Paradise to Shamirpet underlined the government’s focus on improving urban connectivity.