The Congress is all set to raise a loan of Rs 800 crore for development works though the state is reeling under a huge debt burden of Rs 75,000 crore. The Central Government has imposed a limit of Rs 3,000 crore on external borrowings by Himachal. Besides, the Central Government has restricted the states borrowing capacity for ongoing projects to Rs 4,000 crore.
The loan will be taken in two installments of Rs 500 crore and Rs 300 crore
The loan of Rs 500 crore will be repaid in eight years and Rs 300 crore in six years
The Central Government has imposed a limit of Rs 3,000 crore on external borrowings by Himachal
The loan will be taken in two installments of Rs 500 crore and Rs 300 crore and a notification has been issued in this regard. The reason cited for raising the loan is development works, but it is common knowledge that the government is finding it hard to foot the huge salary and pension bills of its employees and pensioners. The loan of Rs 500 crore will be repaid in eight years, while Rs 300 crore will be repaid in six years.