The financial condition of the Madhya Pradesh government is bad. The situation is that the government is also planning to raise loans for development schemes.
The Madhya Pradesh government is taking a loan of Rs 2,000 crore. Proposals have been called from financial institutions for this. Significantly, the state already has a debt of Rs 2 lakh 95 thousand crore.
Proposals have been called from financial institutions on 2nd August and a final decision will be taken after considering these proposals on 3rd August – many activities are closed due to financial problems in the state. The MP government will take a loan of Rs 2 thousand crore for starting these and for development schemes.
This loan will be taken through the Reserve Bank of India.
The process has been started for this loan to be taken for a period of ten years. The Reserve Bank has invited proposals from financial institutions capable of providing loans to the state government.
This loan amount of Rs 2 thousand will be taken till the time period of June 2032.
According to departmental officials, from this amount, additional funds will be provided to the departments conducting the activities of basic development schemes.
Recently, revised administrative approvals of Rs.6 thousand crores were also issued in the state - these mainly include Public Works Department, Urban Development and Housing Department and Public Health Engineering Department.
It is expected that this loan will give impetus to the development works in the state.