CM Chandrababu Naidu Urges Measures to Reduce Loan Interest Rates and Strengthen Governance

Amaravati, Dec 2025 : Andhra Pradesh Chief Minister N. Chandrababu Naidu on Wednesday directed officials to initiate discussions with various banks and financial institutions to bring down the interest rates on state loans, aiming to save public funds and enhance the state’s financial stability.

Addressing a conference with ministers, secretaries, and department heads, the Chief Minister emphasized that lowering interest rates on loans could help the state save up to Rs 7,000 crore. He pointed out that the previous government’s mismanagement had damaged Andhra Pradesh’s brand image, prompting several financial institutions to hike interest rates, resulting in unnecessary expenditure of public money.

Highlighting the achievements of the current NDA government, Chandrababu Naidu said that through loan rescheduling and active engagement with banks, the state saved Rs 512 crore last year and Rs 1,000 crore so far this year. He stressed the importance of continuing such measures to ensure fiscal prudence.

The Chief Minister expressed concern over the non-utilization of Rs 1,170 crore in Central government funds by various departments. He directed officials to ensure full utilization of these funds by December 20, with utilization certificates submitted to the Centre to facilitate further releases. He also urged ministers to take an active role in expediting developmental projects using these funds.

CM Naidu stressed that all departments must come under audit purview by March 2026 and instructed ministers to accelerate file clearances to improve administrative efficiency. He announced that he will review the performance of departments every three months and emphasized prompt action on critical issues, including farmers’ welfare, crop pricing, road development, employment generation, drinking water, and essential commodity prices.

He underscored the need for administrative reforms, questioning why rules should not be modified to speed up file processing when the Constitution itself has been amended multiple times for the benefit of the people. He also encouraged the use of technology to enhance public service delivery, emphasizing that a humanitarian approach is essential to ensure citizen satisfaction.

Regarding power tariffs, the Chief Minister confirmed that the government will not increase power charges this year. Efforts are underway to reduce the power purchase price to Rs 4 per unit from Rs 4.92. He noted that restoring Andhra Pradesh’s brand image has attracted significant investments, citing the success of the CII Partnership Summit in Visakhapatnam as a prime example.

CM Naidu highlighted the state’s strong economic performance, stating that Andhra Pradesh achieved 12.02% growth in the first quarter and 11.28% in the second quarter of 2025-26, setting a target of 17.11% growth for the year. He stressed the government’s focus on the irrigation sector, with 944 tmc of water stored across various projects, supporting agricultural and industrial development.

The Chief Minister reaffirmed the government’s commitment to balanced regional development. Andhra Pradesh now ranks first in the country with 638 industrial parks, and plans are underway to develop three major economic zones: Visakhapatnam with North Andhra and East Godavari districts, Amaravati with West Godavari, Krishna, Guntur, and Prakasam districts, and Tirupati with Nellore and Kurnool districts.

Concluding his address, CM Naidu directed that all government services be made available online by January 15, urging lagging departments to improve efficiency and service delivery. He reiterated that these reforms aim to ensure transparency, accountability, and swift development for all regions of the state.