Overview

• On June 25, the Andhra Pradesh Mineral Development Corporation closed a second NCD tranche at a 9.3% coupon, raising ₹5,526 crore and taking total issuance to ₹9,000 crore.
• Jagan Mohan Reddy says the new borrowing has already exceeded half of the debt amassed by the previous government over its five-year term in just 13 months.
• He alleges the TDP-led administration mortgaged ₹1.91 lakh crore of mineral assets as security and issued bonds at 2.6% above state loan rates, adding ₹235 crore in annual interest costs.
• Reddy argues that the bond proceeds will fund revenue expenditures in breach of constitutional borrowing rules and that the issuance moved forward despite being sub judice in the Andhra Pradesh High Court.
• He further contends that private entities were granted RBI direct debit access to the Consolidated Fund, violating Articles 203, 204 and 293 of the Constitution of India.