What is The Issue Between AP And Telangana on Managing Assets And Liabilities?

The AP Government is ﬁrm on the implementation of the recommendations given by the committee headed by retired bureaucrat Sheela Bhide for bifurcation of 89 out of the 91 Schedule IX institutions.

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What is The Issue Between AP And Telangana on Managing Assets And Liabilities? The Andhra Pradesh government has moved the Supreme Court seeking an equitable and expeditious division of assets and liabilities between itself and Telangana, contending the actual division of assets has not even commenced more than eight years after the successor state was born. It said it has approached the top court as “Parens patriae” (parent of the nation), claiming that non division of the assets has benefited Telangana since about 91 per cent of these are situated in Hyderabad.

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Context

On the issue of assets and liabilities distribution, several bilateral meetings between the two States(AP and Telangana) as well as those convened by the Union Home Ministry failed and the Andhra Pradesh government has now approached the Supreme Court seeking “just, reasonable and equitable apportionment” of assets and liabilities.

Background

Andhra Pradesh was bifurcated and the new state of Telangana came into existence on June 2, 2014.
After the bifurcation of Andhra Pradesh, Hyderabad became the joint capital of the two states and the transitional arrangement is scheduled to end in 2024.

Did You Know?

Hyderabad (which is now a part of Telangana) was the capital of the combined State of Andhra Pradesh. Hyderabad was not only transformed into an economic powerhouse as a result of the ‘Capital Centric Development Model’ but also most of the institutions of governance (intended for the welfare of the people of all the regions of the State) including government infrastructure was exclusively centered in and developed around the city of Hyderabad by extensively investing resources of the combined State.

What Is The Issue Regarding Assets?

There are 91 institutions under Schedule IX and 142 institutions under Schedule X of the Andhra Pradesh Reorganisation Act 2014.
The division of another 12 institutions not mentioned in the Act has also become contentious between the States.
The issue involves 245 institutions with a total ﬁxed asset value of ₹ 1.42 lakh crore.

What are AP government’s claims?

The AP Government is ﬁrm on the implementation of the recommendations given by the expert committee headed by retired bureaucrat Sheela Bhide for bifurcation of 89 out of the 91 Schedule IX institutions.
But it lamented that the Telangana government had selectively accepted the recommendations leaving others which was resulting in delays in division of assets and liabilities.

Recommendations Of The Expert Committee

The Expert Committee has made recommendations with respect to the division of 89 out of the 91 Schedule IX institutions.
Its recommendations on the division of assets that are not a part of the headquarter as sets attracted criticism from the Telangana government which said it is against the spirit of the Reorganisation Act.
The division of several institutions like the RTC head quarters and the Deccan Infrastructure and Landholdings Limited (DIL) which have huge land parcels in its possession have become the key bone of contention between the two States.
The committee, for instance, recommended the division of RTC workshops and other assets which do not come under the deﬁnition of ‘head quarter assets’. Telangana opposes these divisions. The land parcels held by the DIL do not come under the provisions of the Act either.

What is the stand of Telangana?

The Telangana government has contended that the expert committee’s recommendations were against the interests of Telangana. There is a clear deﬁnition of division of headquarter assets in Section 53 of the Re organisation Act.
The government is ﬁrm that the assets located outside the erstwhile united State like Andhra Pradesh Bhavan in New Delhi could be divided between the States on the basis of population as per the provisions of the Act.

What Should Be Done?

Several meetings of the dispute resolution committee headed by the Union Home Secretary and comprising of the Chief Secretaries of the two States and those convened by the dispute resolution subcommittee headed by the Home Ministry’s joint secretary could not break the impasse.
The Act empowers the Union Government to intervene as and when needed.
Hopefully, the Home Ministry takes steps to expeditiously and amicably settle the issues between the two States.

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FAQs

When AP and Telangana Became Two Separate States?

Andhra Pradesh was bifurcated and the new state of Telangana came into existence on June 2, 2014.

What Is The Say Of AP Government on Sheela Bhide Committee?

The AP Government is ﬁrm on the implementation of the recommendations given by the expert committee headed by retired bureaucrat Sheela Bhide for bifurcation of 89 out of the 91 Schedule IX institutions.