Government Raises Rs 10,000 Crore Through Land-Backed Bonds for Welfare Schemes with 9.35% Coupon Rate

The Telangana government raised approximately Rs 10,000 crore through bond issuance using 400 acres of land near University of Hyderabad as pre-collateral. The bonds, rated and listed on exchanges, carry a 9.35% coupon rate. Proceeds were allocated to welfare schemes including farm loan waivers and agricultural support. The industrial infrastructure corporation issued the bonds through private placement, with 37 organizations investing, and an escrow account maintained by a private bank. The land's transfer and development have sparked political and legal debates.