Telangana CM Revanth Reddy Seeks Loan Restructuring, Central Support for Education Reforms

Hyderabad, Sept 2025 : Telangana Chief Minister A. Revanth Reddy on Tuesday urged Union Finance Minister Nirmala Sitharaman to restructure the state’s loans and provide extensive financial support for education reforms. The appeal was made during a meeting in New Delhi, where the Chief Minister highlighted the state’s financial challenges and its ambitious plans for transforming the education sector.

According to the Chief Minister’s Office, Reddy explained that the previous government had borrowed funds at arbitrarily high interest rates, resulting in an unsustainable repayment burden. He requested the Finance Minister to permit restructuring of these loans to ease pressure on the state’s finances. The Finance Minister reportedly responded positively to his request.

Focus on Education Reforms

The Chief Minister also sought central assistance to strengthen the state’s education system, describing it as a key investment for the future. He informed Sitharaman about a series of initiatives aimed at providing corporate-style education to backward classes, Scheduled Castes, Scheduled Tribes, and minorities, who together constitute nearly 90 percent of Telangana’s population.

As part of these reforms, the government is building 105 Young India Integrated Residential Schools across 105 Assembly constituencies. Construction has already begun on four campuses, while tenders for the rest have been finalised. Each school will accommodate 2,560 students, providing opportunities for nearly 2.7 lakh students statewide.

These schools will be equipped with state-of-the-art facilities, including modern laboratories and sports stadiums. The total construction cost is estimated at ₹21,000 crore, with an additional ₹9,000 crore earmarked for upgrading laboratories and infrastructure in junior colleges, degree colleges, technical institutions, and other higher education centres.

Appeal for Special Funding Mechanism

To meet these financial requirements, the Chief Minister appealed to Sitharaman to permit the formation of a special-purpose corporation to raise funds, while seeking exemption from the Fiscal Responsibility and Budget Management (FRBM) limits. He stressed that the state government considers spending on education not as an expense but as a long-term investment in human capital.

Delegation in Attendance

The Chief Minister was accompanied by Congress MPs Dr. Mallu Ravi, Porika Balram Nayak, Suresh Shetkar, and Chamala Kiran Kumar Reddy. Senior officials, including state finance principal secretary Sandeep Kumar Sultania and central projects and schemes coordinating secretary Gaurav Uppal, also took part in the discussions.

With the dual focus on debt relief and education transformation, Telangana is positioning itself to manage fiscal pressures while driving social and economic progress through human development.