Hyderabad, March 6 -- The Telangana government has decided to clear the outstanding debt of the Greater Hyderabad Municipal Corporation (GHMC) and provide financial support to two newly formed municipal corporations, a move aimed at easing the civic body's financial burden and strengthening urban infrastructure.

According to a report in Deccan Chronicle, the state government will take over GHMC's debt accumulated since 2014. The civic body had raised loans amounting to about Rs 7,000 crore between 2014 and 2023 through term loans, bonds and other borrowings to fund major infrastructure works across Hyderabad. Of this, the pending loan amount is around Rs 4,780 crore.

The borrowed funds were used primarily for infrastructure projects suc...