Yet another meeting fails to build consensus between Andhra Pradesh, Telangana

 The meeting was attended by chief secretaries of Andhra Pradesh and Telangana, and chaired by Union Home Secretary Ajay Bhalla.

BySNV Sudhir

Published Sep 27, 2022 | 8:57 PMUpdatedSep 27, 2022 | 8:58 PM

Ministry of Home Affairs office

As feared, the meeting called by the Union Ministry of Home Affairs (MHA) on Tuesday, 27 September, to resolve pending issues arising out of the bifurcation of Andhra Pradesh and Telangana failed as no consensus between the two states emerged on any of the contentious issues.

Then again, the result was no different from each time such meetings were held over the last eight years after the bifurcation of the states in 2014.

The meeting was attended by the chief secretaries of Andhra Pradesh and Telangana, Sameer Sharma and Somesh Kumar, respectively, and was chaired by Union Home Secretary Ajay Bhalla. The chief secretaries were assisted by a battery of senior officials from their respective states.

While there are 91 institutions listed in Schedule IX, which are to be divided, the expert committee of Dr Sheela Bhide gave its recommendations with respect to only 90 institutions.

The dispute resolution subcommittee constituted by the MHA suggested carrying out the division in three phases.

As far as 53 PSUs are concerned, there are differences of opinion, but in the case of 15 PSUs, the recommendations were agreeable for Telangana but not Andhra Pradesh. In the case of 22 institutions, the terms were not agreeable for Telangana.

“The main issue is regarding the definition of headquarters. This was clarified by the MHA in May 2017 that where the principal office building was located would be considered its headquarters,” said a senior official from Telangana.

“Andhra Pradesh has said that the Dr Sheela Bhide Committee recommendations have to be accepted in full. Telangana has brought to the notice of MHA that there are cases pending in the high court of Telangana with respect to certain institutions, and no further action can be taken till the matter is settled by the court,” said the official.

In the case of Deccan Infrastructure & Land Holdings Ltd (DILL), the government of Telangana acquired lands that were unutilised by DILL in 2015. Andhra Pradesh filed a case in the high court wherein interim stay orders were issued.

The expert committee recommended the division of these properties, treating them as headquarters assets in spite of the objections raised by the Telangana government.

In the case of the AP Dairy Development Corporation, the Telangana High Court declared that the MHA does not have any jurisdiction with respect to the apportionment of assets and liabilities of Schedule IX institutions.

The Union home secretary directed the MHA to examine all the court cases in consultation with the Law Department.

The government of Telangana requested the MHA to reconstitute the board of the AP State Finance Corporation (APSFC) in May 2016. However, no such reconstitution was done.

Andhra Pradesh also approached the high court against the resumption of 238 acres of land in Ranga Reddy District belonging to APSFC. The high court issued a status quo order in November 2015 and the matter is still pending.

Andhra Pradesh wanted to keep the land issue separate, so that the remaining issues related to bifurcation could be taken up by the Central government.

Telangana objected to it, as the issues involved in this case were also the definition of headquarters and whether the lands in dispute would be considered headquarter assets.

The home secretary requested the MHA to examine the case keeping in view the status quo orders of the high court.

Bifurcation of Schedule X state institutions

There are 142 institutions listed under Schedule X.

Based on the judgment of the Supreme Court in the case of APSFC, the Central government issued a speaking order that the cash balances would have to be divided based on the population ratio, and assets on a location basis.

However, Andhra Pradesh filed a petition in 2018 in the high court, and the matter is still pending.

Andhra Pradesh wants the Schedule X institutions’ assets to also be divided by population ratio instead of the location.

Other issues of interest

Apart from the common issues belonging to both the states, the Telangana and Andhra Pradesh chief secretaries also raised issues specific to their respective states.

Andhra Pradesh, at the meeting, pointed out that the Sivaramakrishnan Committee appointed by the Centre to identify a new capital for the state had recommended around ₹29,000 crore for the development of the new capital city.

Telangana raised the issue of the establishment of the Rail Coach Factory in Kazipet, and informed the home secretary that the required 150 acres of land had already been mutated in favour of Railways.

The home secretary instructed the Ministry of Railways to examine the matter and take necessary action expeditiously.