Hyderabad: The Telangana State Industrial Infrastructure Corporation (TSIIC) has raised almost ₹10,000 crore by selling special bonds to private investors. These bonds are backed by 400 acres of land near the University of Hyderabad, which was used as “pre-collateral.” This announcement was made by Industries Minister D. Sridhar Babu on Saturday.
At a press meet, the minister explained that the bonds have a 9.35% interest rate and attracted investments from 37 groups, including international investors and mutual funds. So far, ₹8,476 crore has already been received in TSIIC’s account.
The money will be used for several welfare programs. These include ₹2,146 crore for farm loan waivers, ₹5,443 crore for the Rythu Bharosa scheme, and ₹947 crore as bonuses for farmers who grow fine rice varieties.
Minister Sridhar Babu also addressed concerns raised by BRS leader K.T. Rama Rao. He clarified that ICICI Bank did not give any loans to the government. Instead, the bank only managed the account where the bond money was kept. “No land was mortgaged, and there are no legal disputes over it,” the minister stated.
ICICI Bank also released a statement confirming that it did not provide any mortgage loan. The bank said it only acted as an account manager for the bond funds.
Babu further said that the Supreme Court had confirmed the state’s ownership of the 400-acre land. He also criticized the previous BRS government, saying they had misled the public. He pointed out that the current bond interest rate of 9.35% is lower than the 10.9% interest the earlier government paid for loans related to the Kaleshwaram project.
Meanwhile, the government’s plan to develop the 400-acre area in Kancha Gachibowli into an IT hub has faced criticism. The University of Hyderabad Students’ Union, along with leaders from the BRS and BJP, have raised concerns about how the land is being valued and used.
