As Telangana State Industrial Infrastructure Corporation status changes, opposition alleges conspiracy
The Telangana government has formally approved the conversion of Telangana State Industrial Infrastructure Corporation (TSIIC) from a 'Private Limited' to a 'Public Limited' company. This move is aimed at encouraging wider investor participation for its listed bonds on the National Stock Exchange (NSE).
A Government Order (GO) to this effect was issued on April 15. The Order highlights that the shift was essential to overcome regulatory hurdles in the secondary bond market and facilitate greater access to certain categories of investors. According to the GO, TSIIC, which was earlier restricted under private company norms, will now allow wider shareholding and remove restrictions on inviting public investment.
Seven nominee shareholders, representing the Government of Telangana have been listed to meet the compliance requirements under the Companies Act of 2013. As per the new share holding pattern, the maximum number of shares, 94 per cent, will be held by Joint Secretary to Governor. The remaining six shareholders, Special Chief Secretary of Industries, MD of TSIIC, Additional Secretary to Industries, Principal Secretary of Revenue department, Commissioner of Industries and Member Secretary of Pollution Control Board will be allotted a share each.
However, this decision has attracted sharp criticism from the main opposition party, the Bharat Rashtra Samithi (BRS). Party leader and MLC, K. Kavitha alleged that the status change was part of a larger ‘conspiracy’ to mortgage Telangana’s land banks. She said that the Congress government had secretly issued the GO with the intention of raising thousands of crores in loans by mortgaging 1.75 lakh acres, which is under the TSIIC. She claimed that massive loans are being raised using Telangana’s lands as collateral with a dubious intent. “If there is a stock market crash, what happens to these lands? Why aren’t people informed about such a scenario?” she questioned.
Kavitha said that she had evidence to prove that government has taken decisons in the past to only benefit big contractors, and alleged the government led by CM Revanth Reddy was functioning like a “Commission Sarkar”. She said that no meaningful development had been achieved in the state despite borrowings exceeding Rs 1.8 lakh crore in 16 months. Kavitha demanded that the decision to convert TSIIC into a public company be rolled back. She also demanded that the government release a white paper on the state’s debts and land mortgaging strategy.
India