Uttam Kumar Reddy Orders Financial Overhaul to Cut Telangana Irrigation Corporations’ Debt
Telangana Irrigation Minister N. Uttam Kumar Reddy has ordered a financial overhaul of irrigation corporations, with a funding strategy due in 10 days, debt restructuring, solar revenue plans and completion of pending audits.
Hyderabad: Telangana Minister for Irrigation and Civil Supplies N. Uttam Kumar Reddy has directed officials to prepare a comprehensive funding strategy within 10 days as part of a financial overhaul to reduce the debt burden of irrigation corporations and make them financially independent. During a review meeting on Sunday, the Minister called for the appointment of experienced financial experts, completion of pending statutory audits, and exploration of new revenue sources, including solar power projects, while ensuring that farmers are not burdened.
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Telangana Plans Financial Overhaul for Irrigation Corporations
The Telangana Irrigation Department is preparing a comprehensive financial reform strategy aimed at enabling irrigation corporations to become financially independent.
According to the Minister, the strategy will focus on:
- Improving financial oversight.
- Reducing the cost of borrowing.
- Decreasing dependence on direct budgetary support.
- Increasing operational revenues to service loans and interest liabilities.
Uttam Kumar Reddy instructed officials to finalise the detailed funding strategy within 10 days.
Experienced Financial Experts to Be Engaged
The Minister directed officials to bring in experienced financial professionals to assist irrigation corporations in:
- Renegotiating existing debts.
- Preparing funding proposals.
- Improving financial reporting.
- Restructuring debt.
- Strengthening the corporations’ financial presentation.
He said these measures would help the corporations secure long-term funding at more favourable rates.
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Solar Projects Identified as a Revenue Source
During the meeting, officials discussed several financing models, including generating revenue from solar power projects.
The Minister said:
- Unused or suitable lands belonging to irrigation corporations can be developed for solar power generation.
- The corporations may either establish their own independent power projects or lease the land for solar development.
- Revenue generated from these projects would become a stable source of income for the corporations.
Renewable Energy Opportunities Near Nizam Sagar Discussed
The meeting also reviewed renewable energy opportunities near irrigation reservoirs, including the Nizam Sagar area.
Officials were instructed to study the technical and commercial feasibility of such projects before moving forward.
Minister Says Farmers Should Not Be Burdened
Uttam Kumar Reddy made it clear that any new revenue mechanism should not impose any burden on farmers.
He instructed officials to examine all legal and regulatory implications of the proposed revenue measures before including them in the final financial model.
Pending Statutory Audits to Be Completed
The Minister ordered the completion of statutory audits of irrigation corporations without delay.
He specifically directed officials to:
- Complete the 2022–23 statutory audit.
- Take up audits for other pending financial years immediately.
- Coordinate with the competent authorities for the early appointment of auditors.
- Resolve issues related to draft audit reports.
Senior officials were instructed to closely monitor the audit process to avoid further delays.
Minister for Irrigation and Civil Supplies N. Uttam Kumar Reddy has initiated a financial reform plan to reduce the debt burden of Telangana irrigation corporations by directing officials to prepare a funding strategy within 10 days. The plan includes debt restructuring, improved financial management, solar power-based revenue generation, completion of 2022–23 and other pending statutory audits, and ensuring that no additional financial burden is placed on farmers.
