Dispute between AP, Telangana: Division of assets
Several disputes have cropped between the two states including the Krishna rover water dispute, disputes over division of assets and return of five villages near Bhadrachalam to Telangana.
The bifurcation of Andhra Pradesh through the AP Reorganisation Act (APRA), 2014, gave birth to several disputes between the two states including the Krishna rover water dispute, disputes over division of assets and return of five villages near Bhadrachalam to Telangana.
Ten years into the bifurcation, these disputes remain unsolved.
The APRA, 2014, includes 12 parts and 13 schedules with 108 sections detailing the reorganization of AP.
Division of various institutions and corporations, named in Schedule 9 and 10 of the AP Reorganisation Act, have not yet been completed as there was no consensus over many issues.
As many as 91 public companies, corporations are named in the Ninth Schedule including AP State Warehousing Corporation, AP State Seeds Development Corporation, AP State Agro Industrial Development Corporation and about 143 institutions fall under Schedule 10. At least 107 of them are training institutions like AP State Co-operative Union, Environment Protection Training and Research Institute Centre for Good Governance, AP Police Academy and AP Forest Academy.
The assets in Schedule 9 are reportedly worth Rs 1.42 lakh crore while assets in schedule 10 are worth Rs 24,018 crore. There are 10 other institutions not mentioned in the act which are estimated to be worth Rs 1,759 crore.
In 2014, the AP state government constituted an expert committee chaired by Dr Sheela Bhide to make recommendations on the bifurcation of assets and liabilities of schedule 9 institutions and the division of employees. The committee gave its recommendations for 90 companies except the AP State Finance Corporation (APSFC).
The de-merger for APSFC was sent to the Union Ministry of Finance, Department of Financial Services in January 2016. A dispute resolution committee was formed to tackle the disputes between Telangana and AP. However, the talks did not resolve the dispute and ended up in court with both states filing cases.
Court cases:
Many institutions listed in Schedule 9 are also tied up in court cases. AP Diary Development Coop Federation Limited (APDDCF) had filed a case against the TGDDCF, which filed a counter affidavit.
The AP Mineral Development Corporation Ltd (APMDC), which is headquartered in a rented building in Hyderabad, is in dispute for the apportionment of 12,602 sq ft located in Ameerpet, even though it is not the head office.
Telangana claims that its power utility companies are owed Rs 17,828 crore from AP power utilities if all issues are settled at state level. AP Power Generation Corporation has filed a case in Telangana High court to direct the state to pay Rs 6,238 crore after which a counter affidavit was filed by Telangana.
TSGenco and TS Discoms also filed writ petitions in Telangana High Court to settle dues pending to them. Telangana government has said that the progress on bifurcation of schedule nine institutions cannot be made unless court cases are withdrawn or resolved.
Out of the 142 institutions listed under Schedule X, 122 are exclusively located in Telangana, 16 in AP and those with service centres in Telangana, will devolve to it while the centres located in AP will devolve to AP.
The provisions of APRA does not provide any apportionment of assets of schedule 10 institutions. The AP government has said that the assets and liabilities of these institutions should be bifurcated as per population ratio. However, Telangana government maintained that the institutions in schedule 10 cannot be apportioned and should devolve to the state based on location.
AP Bhavan assets divided between AP, Telangana:
In March 2024, the Union Home Ministry resolved the dispute over division of land and properties of AP Bhavan in Delhi as both sides accepted the settlement,. 8.24 acres of land was allotted to Telangana and 11.53 acres of land was given to AP.
Telangana received three acres in Sabari Block and 5.2 acres in Pataudi House. AP received Godavari Block and 5.78 acres of Swarna Mukhi Block.
Other schedules of APRA, 2014:
According to provisions under schedule 13 of the act, NHAI should take necessary steps to improve road connectivity between backward regions of Telangana. Proposals for better connectivity between Jogulamba Gadwal, Narayanpet, Peddapalli, Vikarabad and Wanaparthy were submitted to the Centre.
The act also mandates the Union government to support programmes for the development of backward regions in the successor states and to provide enough funds.
However, the union government has released Rs 2,250 crores for FY 2015-16, 2018-19 to 2020-21 at Rs 450 crore per year but funds for FY 2019-20, 2021-22, 2022-23 amounting to Rs 1,350 crore were not released.
According to section 93 of the act, the central government has to take necessary steps to establish an integrated steel plant at Bayyaram, Khammam district. The establishment of the steel plant remains pending.
Schedule -13 of the act mandates the NTPC to establish a 4,000 MW power facility in Telangana after establishing necessary coal linkage. NTPC took up the project in two phases. The 1,600 MW project was taken up in phase-1 and 2,400 MW was taken up in phase-2.