After Note Ban: Telangana may face lose of Rs 2,000 Crore per Month

Hyderabad: On Friday, IT Minister of Telangana State – K T Rama Rao said that CM of Telangana State K Chandrasekhar Rao is concerned about the implications of demonetisation of Rs 500 and Rs 1,000 currency notes by the Central Government.

K T Rao son of KCR said that it is not that CM is not happy with the decision of Centre. We see this in terms of revenues of State, in terms of how the State is going to shape up right after this. He is little concerned about. It is absolutely untrue that he is unhappy.

An Indian woman holds 500 INR currency notes at her home in Faridabad, a suburb of New Delhi, on November 8, 2016.  Indian Prime Minister Narendra Modi announced late November 8 that 500 and 1,000 ($15) rupee notes will be withdrawn from financial circulation from midnight, in a bid to tackle corruption. "To break the grip of corruption and black money, we have decided that the 500 and 1,000 rupee currency notes presently in use will no longer be legal tender from midnight ie 8 November, 2016," Modi said in a special televised address to the nation. / AFP / MONEY SHARMA        (Photo credit should read MONEY SHARMA/AFP/Getty Images)

As per the sources, Rao told the Governor that the demonetisation of Rs 500 and Rs 1,000 currency notes is likely to cause about Rs 2,000 crore loss to Telangana per month.

CM quoted that the decision of the Central government would adversely affect the real estate sector in Telangana and also transactions in motor vehicles.

He said the Telangana State Government is in the process of trying to minimise the impact of the demonetisation.

Telangana State IT Minister KT Rao said that we are still assessing the impact and the fallout of this decision. We all agree that it is a great thing for the country and State as well. I think the short term and medium term implications are something that we are concerned.

He said that Union Finance Minister – Arun Jaitley had agreed to his proposal to collect the some of utility charges such as power and municipal tax in older denominations of Rs 500 and Rs 1000 for a limited period.

The Hyderabad Metro Water Board and the Greater Hyderabad Municipal Corporation (GHMC) announced yesterday that they will accept payments with demonetised notes till Friday.

He suggested that as result of the decision of the government, the common man of the country should not suffer.