Andhra Pradesh, Telangana refuse to budge on sharing of assets

NEW DELHI: The crucial meeting chaired by the Union Home Ministry on Tuesday to sort out long pending bifurcation issues between Andhra Pradesh and Telangana failed to reach consensus on issues like AP State Finance Corporation, division of Singareni Collieries Company Limited (SCCL) and of Schedule X institutions. The meeting, attended by Telangana Chief Secretary Somesh Kumar and his AP counterpart Sameer Sharma deliberated on significant bilateral issues.

Regarding the division of AP State Finance Corporation (APSFC), the Home Secretary requested the MHA to examine the case keeping in view of the status quo orders of the High Court. Though the Telangana government requested MHA to reconstitute a Board of the APSFC in 2016, it did not materialise. However the then APSFC prepared a bifurcation plan unilaterally and sent it to the Centre for approval. AP then approached the High Court against resumption of 238 acre land in Ranga Reddy district resulting in a status quo on the issue in 2015.

The matter is pending. Though AP wants the Centre to keep the land issue separate and to take up other bifurcation issues, Telangana has objected to the same as the issue pertains to definition of ‘Headquarter’ and whether the lands in dispute would be considered as a part of Headquarter asset or not. Regarding the contentious issue of the division of SCCL and AP Heavy Machinery Engineering Ltd. (APHMEL), the Home secretary gave directions to MHA to examine the matter.

While AP wants SCCL to be bifurcated as it has assets in its territory, Telangana objects to it saying that there is a specific provision in the Act transferring 51 per cent of equity to the State completely. Similarly, APHMEL is only a subsidiary company of SCCL and the only division which is to be done is that of equity of the erstwhile State.

Under Schedule X, 142 institutions are listed for bifurcation. Based on an SC judgment in the case of AP State Council of Higher Education, the Centre has issued a speaking order that the cash balances would be divided on population ratio and assets on location basis. While Telangana agrees with the speaking orders issued by MHA, AP filed a writ petition in 2018 in the High Court and the matter is still pending.

AP maintains that the Schedule X institutions assets are also to be divided on population ratio instead of location. Telangana has also filed a case in Telugu Akademi bifurcation. While the cases are still pending, Telangana is of the view that the MHA order is based on SC directions and no further review is needed. Telangana also objected to AP’s demand for amending the Reorganisation Act to remove matters relating to tax anomaly mentioned in Sections 50, 51 and 56.

MAJOR TAKEAWAY FOR TELANGANA
The one takeaway for Telangana was that MHA Secretary Ajay Kumar Bhalla instructed the Finance Ministry to release the backward districts development funds to the State.