AP wants the lion’s share of assets in Hyderabad corporation

AP wants the lion’s share of assets in Hyderabad corporation

The Andhra Pradesh government has identified 17 corporations listed under Schedule 9 head-quartered in Hyderabad, including APGENCO for distribution of assets in 58:42 ratio based on population in AP and Telangana. The worth of these institutes is pegged around Rs.3,000 crore, including value of buildings, land, shares, training institutions and equities. AP will submit this list to Union home ministry at a meeting on distribution of assets scheduled on Monday in Delhi.

Both sides represented by a common committee with representatives appointed by Union government will present their arguments and submissions. “We want the Supreme Court judgment on division of Andhra Pradesh State Council of Higher Education (APSCHE) to be the guiding principle in splitting assets of corporations in Hyderabad,” committee member from AP side, state planning board vice chairman C Kutumba Rao told.

The Supreme Court in March last year ruled that assets and liabilities of Andhra Pradesh State Council of Higher Education (APSCHE) which was listed under Schedule 10 of AP Reorganisation Act, 2104, should be shared between both states in 58:42 ratio. AP representatives want the same guideline to be applied on 17 corporations identified by them in Schedule 9. The tussle over sharing of assets and liabilities of common corporations listed under Schedule 9 are mostly in Hyderabad, where land and buildings have high value.

As per the Act, there were 107 institutions listed under Schedule 10, of which 97 are located in Telangana. Another 91 institutions were listed under Schedule 9, again in Hyderabad. A rough estimation of assets is pegged to be around Rs.75,000 crore. In recent meetings, Telangana officials reportedly proposed they are willing to pay for value of office space occupied currently by employees of AP cadre. “We are okay with division in 58:42 ratio, but it should be limited to headquarter offices in Hyderabad. But, AP wants distribution of others assets and training institutes belonging to these corporations. We don’t accept this,” said N Ramakrishna Rao, member of the committee from Telangana.

On handing over secretariat buildings in Hyderabad, Andhra Pradesh has set riders. “We want Telangana’s demand to be made part of assets and liabilities division of institutes. It should not be a standalone arrangement,” said AP officials. Centre had appointed Sheela Bhide committee for bifurcation of institutions under Schedule 9. It completed division of about 61 listed corporations. But it did not began the process of division of employees. Sources said, with the committee’s second term to be completed soon, AP government recently shot off a letter to Union government for a third extension of term.

Source : http://timesofindia.indiatimes.com