Jagan accused CM Chandrababu Naidu of contradicting his own claims by effectively mortgaging Andhra’s mineral wealth via NCDs worth ₹1.91 lakh crore, risking long-term fiscal autonomy and transparency
Published Jun 19, 2025 | 5:42 PM ⚊ Updated Jun 19, 2025 | 5:42 PM
Jagan Mohan Reddy drops a bombshell: Says the TDP government secured APMD's NCDs with state government accounts
Synopsis: YSRCP chief YS Jagan Mohan Reddy alleged on 19 June that the TDP-led Andhra Pradesh government had mortgaged mineral rights worth ₹1.91 lakh crore to issue bonds via APMDC under GO No. 69. He claimed the move, which includes hypothecating mining rights for Non-Convertible Debentures, was unconstitutional and contradicted CM Chandrababu Naidu’s claims of not pledging state assets.
In a shocking allegation, YSRCP supremo YS Jagan Mohan Reddy on Thursday, 19 June, said that the GO No. 69, dated 24 April, 2025, issued by the TDP-led government in the state had authorised AP Mineral Development Corporation (APMDC) to manage 436 new minor mineral projects and use their quarry leasehold and mining rights, valued at₹1,91,000 crore, as security for issuing Non-Convertible Debentures (NCDs).
The bonds are secured by exclusive charges on the Bond Servicing Account, Debt Service Reserve Account (DSRA), Current Revenue Account (CRA), and hypothecated mineral rights, which Jagan Mohan Reddy said was unconstitutional.
Speaking to media persons at the YSRCP party office in Tadepalli near Vijayawada, he sought to turn the tables against the TDP-led government in the state with the revelation. He said that Chief Minister N Chandrababu Naidu, who had said he was not mortgaging the state’s assets and future income to raise loans, was, on the contrary, doing exactly the same.
He said that issuance of Non-Convertible Debentures (NCDs) secured by mineral wealth worth ₹1,91,000 crore raises concerns about the state’s long-term financial sustainability, particularly given the controversial mechanism allowing investors to directly access government accounts in case of shortfalls.
DSRA is a separate reserve account for debt servicing and it might be initially funded from the Consolidated Fund while the CRA is part of the Consolidated Fund of Andhra Pradesh, as it manages revenue receipts and expenditures credited to and debited from the Consolidated Fund.
A recourse mechanism allows the debenture trustee to invoke a guarantee or access government accounts via an RBI mandate in case of shortfalls. The NCDs, part of ₹3,489 crore in APMDC borrowings, aim to raise funds for state projects amid fiscal challenges.
The former chief minister, who covered several aspects of the state economy and the promises not kept by the TDP-led government in the state, called upon the people to confront and demand why they were not being paid for the welfare schemes they were eligible as mentioned in the “bonds” given to them at the time of the elections in 2024 when TDP leaders visit them.
“I want all the families to insist on an answer as the TDP is planning to mobilise its cadres and leaders to visit each household and inquire how they were doing and whether the welfare schemes rolled were reaching them or not,” Jagan Mohan Reddy said and promised them that if they do not get what they should, he would swing into action and fight on their behalf with the government.
He said that there were reports that Andhra Pradesh faced a severe unemployment crisis, with 1.56 crore individuals aged 18 to 50 remaining jobless. This figure, representing a significant portion of the state’s working-age population, posed a critical challenge for the state’s economy. With a total electorate of 4.14 crore as per the 2024 Election Commission data, the unemployed constitute nearly 38 percent of the voting population, highlighting the scale of the issue, he said.
He painted a grim picture of Andhra Pradesh’s fiscal health, with both fiscal and revenue deficits rising under the TDP government. The fiscal deficit to Gross State Domestic Product (GSDP) ratio, which averaged 4.08 percent during the YSRCP government (2019-24), has increased to 5.12 percent in the first year of the TDP alliance government (2024-25). Similarly, the revenue deficit to GSDP ratio has risen from 2.65 percent to 3.61 percent, indicating a growing reliance on borrowings to meet revenue expenditure.
He said that the YSRCP government had faced economic challenges due to the COVID-19 pandemic, which necessitated higher borrowings to compensate for lower revenues and increased spending on critical sectors like healthcare. However, the TDP alliance government’s first year has seen even higher deficits, which was an indication of inept handling. Data from the Comptroller and Auditor General (CAG) for April and May 2025 shows a year-on-year contraction in state revenues, with Goods and Services Tax (GST) revenues declining by 9.89 percent and state’s own tax revenues falling by 0.11 percent. Non-tax revenues also dropped by 5.69 percent, further straining the state’s finances.
The state’s borrowing has surged significantly, with total borrowings and secured liabilities reaching ₹1,61,301 crore in 2024-25, equivalent to 48.5 percent of the borrowings incurred during the entire five-year YSRCP tenure.
He said the super six package had proved to be a dud. The package involves a financial implication of more than ₹70,000 crore annually, a figure that dwarfs the state’s revenue growth and budget allocations. With revenue receipts for April and May 2025 declining by 1.83 percent compared to the previous year, he said.
The former chief minister said that there was a disconnect between promises and economic realities. The CAG’s report on declining revenues and the state’s high debt levels – ₹3,90,247 crore in total liabilities as of March 2019, with a CAGR of 22.63 percent—suggest that the TDP alliance’s ambitious agenda will not be sustainable.
During the course of the news conference, when it was brought to his notice that the police had booked a case against one youth for setting up a poster with Allu Arjun’s dialogue “raffa raffa” in Pushpa II, the Rule, on the eve of his recent visit to Palnadu area, the YSRCP chief said there was nothing wrong with it.
When pointed out that the youth in fact was a TDP worker, he said it was all the more welcome. “It shows the TDP workers who are disillusioned with the TDP, were now saying that they would avenge them with Allu Arjun’s dialogues,” he said but he did not condemn the use of the dialogue which clearly incites violence.
The YSRCP chief said the people were unhappy with the TDP government because it was winding up all the welfare schemes that he had rolled out when he was the chief minister. Listing out each and every scheme that he sees either abandoned or on the process of being placed on the chopping block, he said it was surprising to know that the chief minister should say that he had implemented all the super six promises.
“The chief minister’s decisions had made about three lakh people lose jobs. Forget about providing new jobs, he is firing those already employed like the village volunteers. The chief minister had increased power tariff which had placed a burden of ₹15,000 crore on the people, was encouraging the private schools and colleges by placing the government schools on the sickbed.
(Edited by Ananya Rao)
