The controversy over the state government securing a loan of Rs 25,000 crore through AP State Development Corporation (APSDC) does not appear to be over as the government is believed to have started negotiations with the consortium of bankers to revise the previous MoU.
The development took place after the Andhra Pradesh high court questioned the government for making thegovernorin his personal capacity a guarantor to the debts.
The state governments decision to constitute APSDC exclusively to borrow monies from different financial institutions had kicked up controversy as several PILs were filed in the AP high court. TheUnion finance ministryhad also sought clarification from the state government following a report by the Comptroller and Auditor General (CAG) on formation of SDC as it suspected that the new entity was constituted to bypass the consolidated fund and treasury rules.