Andhra Pradesh Finance Minister Buggana Rajendranath Reddy hurriedly left for Delhi last week, and the details of his Delhi visit are now coming to light. According to several sources, Buggana met with Union Finance Minister Nirmala Sitaraman, and Deputy Finance Minister Anurag Thakur.
It is now learnt that he went to Delhi to persuade them to agree to the donation of Rs. 65 Thousand Crores from a US based private organisation, to the government of Andhra Pradesh. Details of this private organisation are still in the dark, and no one knows why the organisation is coming forward to lend money to the AP government.
All organisations in India, including banks and other monetary lending institutions have intentionally kept away from lending any money to the government of Andhra Pradesh because the state is not working on a revenue based structure. The way the government is spending, and the way it is not being able to generate any revenue in the state had many organisations worried, because of which no one came forward.
However, with a private organisation based in the US coming forward, many questions are arising, right from who the organisation belongs to, and why they are investing in the state.
Minister Buggana is reportedly trying his best to get all the necessary approvals from the Central Government, but it is not so easy to get financial aid from foreign organisations. For that to happen, one has to have permission from the Reserve Bank of India and Foreign Exchange act. Otherwise, no donations or lending of money can be done by foreign organisations in India.