The Hindu Business Line : AP urged to try non-loan resources for agri projects

THE Chairman of Economic Advisory Council to the Prime Minister, Dr C. Rangarajan, has asked the Andhra Pradesh Government to find ways to pool up resources for completing the irrigation projects.

The means to get resources should not become a burden on the State's Exchequer in the long run.

Speaking to a high-level delegation from the State Government, headed by Mr Ponnala Lakshmaiah, Minister for Major Irrigation, he said that the loan burden would be heavy if the Government sought to get loans to meet the expenditure through the loans route.

It might lead to outflows in the form of debt servicing. In this regard, the State could try for grants from programmes like Bharat Nirman, a Government release said on Thursday.

As it is, the Government spent 25 per cent of its income on interest payment. "If the Government chooses to take loans to complete the projects that might cost Rs 47,000 crore, the burden would double," the release said, quoting the former RBI Governor. Investments on irrigation and agricultural sectors would lead to increased productivity. As a result, there would be an increase in GDP.