Bhatti is seeking special assistance of ₹5,000 crore under the SASCI scheme

The Telangana government has requested the central government to approve a special financial assistance of ₹5,000 crore under the state’s special assistance scheme for capital investment.

The state demanded an amount over and above the allocation of ₹4,208 crore given to the state under SASCI as an interest-free loan for 50 years. The government plans to use the amounts for large investments planned for development works, including reforms in the education sector.

Deputy Chief Minister Mallu Bhatti Vikramarka made the request to Union Finance Minister Nirmala Sitharaman when he visited her in Delhi on Wednesday. The meeting discussed the investments planned by the state in various sectors, capital expenditure and works to strengthen basic civic amenities in the state. Explaining the initiatives of the government to the Union Minister, the Deputy Chief Minister said that the state needs additional financial assistance for effective implementation of the programmes.

He said the state was facing financial stress due to the debt service of loans raised by the previous government in 2014-23 through special purpose vehicles. However, the government continued to invest heavily in education, health, rural infrastructure and human resource development. It is committed to providing students with education of global standards through the Young India Integrated Residential Schools. Investments were made in rural infrastructure and healthcare as they should ensure stable development.

Mr. Vikramarka presented a memorandum to Ms. Sitharaman explaining the initiatives taken to revolutionize the education sector involving an investment of ₹30,000 crore. ₹21,000 crore was planned to be spent on 105 residential schools and another ₹9,000 crore was to be spent on improving facilities in other educational institutions. He thanked the Ministry of Economic Affairs of the Central Government for giving its nod for a loan of ₹ 4,049.11 crore from the Asian Development Bank, ₹ 4,903.44 crore from the Asian Investment Bank for Infrastructure for the Residential Schools Project and the Education Infrastructure Modernization Mission.

He asked the central government to exempt the two loans from the Fiscal Responsibility and Budget Management Act, treating them as investments for the future rather than loans.

Published – 20 May 2026 20:25 IST