PRESS NOTE: Meeting to discuss the pending bilateral issues between Andhra Pradesh and Telangana

A meeting under the chairmanship of Union Home Secretary, Ministry of Home Affairs, Government of India was conducted on 27.09.2022 with the officials of Telangana and Andhra Pradesh States to discuss the pending bilateral issues.
The list of officers from Government of Telangana who attended the meeting is appended to this note.
1) Division of Schedule IX institutions - Government companies corporations: - There are 91 institutions listed in Schedule IX which are to be divided. The expert committee of Dr. Sheela Bhide has given its recommendations with respect to 90 institutions. The dispute resolution subcommittee constituted by MHA has suggested to carry out the division in 3 phases.
i) 53 PSUs where there is no difference of opinion.
ii) 15 PSUs which are agreeable to Telangana State but not to Andhra Pradesh State.
iii) 22 institutions which are not agreeable to Telangana State.

The main issue is regarding the definition of Head Quarters. This was clarified by the MHA in May, 2017 that where the Principal Office building is located would be considered as Head Quarter.

Andhra Pradesh State has said that Dr. Sheela Bhide Committee recommendations have to be accepted in full. Telangana State has brought to the notice of MHA that there are court cases pending in High Court of Telangana with respect to certain institutions and till the matter is settled by the court, no further action can be taken. The court cases also with respect to the definition of Head Quarter.

In the case of Deccan Infrastructure & Land Holdings Ltd. (DILL), Government of Telangana has resumed lands which were unutilized by DILL in 2015. Andhra Pradesh has filed a case in High Court wherein interim stay orders were issued. The expert committee has recommended for division of these properties treating them as Head Quarters assets inspite of the objections raised by the Government of Telangana. In the case of A.P Dairy Development Corporation, the Telangana High
Court has declared that MHA, Union of India does not have any jurisdiction with respect to the apportionment of assets and liabilities of

Schedule IX institutions.

The Home Secretary has directed the MHA to examine all the court cases in consultation with Law Department.
2) Division of AP State Finance Corporation (APSFC):- Government of Telangana has requested MHA to reconstitute a Board of the AP State Finance Corporation in May, 2016 itself, however no such reconstitution of Board was done. The then Board of AP State Finance Corporation has prepared a bifurcation plan unilaterally and sent to Government of India for their approval. In this case also, AP has approached High Court against the resumption of 238 acres of land in Ranga Reddy District. The High Court has issued a status quo order in November, 2015 and matter is still pending. Andhra Pradesh State wanted that keeping the land issue separate and the balance of issues related to bifurcation can be taken up by Government of India. Telangana State has objected to the same as the issue involved in this case is also definition of Head Quarter and whether the lands in dispute would be considered as a part of Head Quarter asset or not.

The Home Secretary has requested MHA to examine the case keeping in view of the status quo orders of High Court.
3) Bifurcation of Schedule X State Institutions:- There are 142 institutions which are listed under Schedule X. Based on the judgement of Hon’ble Supreme Court in the case of AP State Council of Higher Education, Government of India has issued a speaking order that the cash balances would be divided on population ratio and assets on location basis. Telangana State is fully in agreement with the speaking orders issued by MHA, Government of India. However, Government of Andhra Pradesh has filed a W.P in 2018 in High Court and the matter is still pending. Andhra Pradesh State wants that the Schedule X
institutions assets are also to be divided in population ratio instead of location. Government of Telangana has also filed a case in the matter of Telugu Academy bifurcation. While the cases are still pending, Telangana State view is that the MHA order is based on Hon’ble Supreme Court directions and hence no further review of the matter is needed and any such review by MHA was strongly protested by Telangana.

4) Division of Singireni Collieries Company Ltd (SCCL) and Andhra Pradesh Heavy Machinery Engineering Ltd. (APHMEL) : - Government of Andhra Pradesh has raised the issue that Singireni Collieries Company Ltd (SCCL) is to be bifurcated as they have assets in the successor state of Andhra Pradesh. Telangana State has strongly objected and said that the question of Division of SCCL does not arise as there is a specific provision in the Act transferring the 51% of equity to Telangana 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 then Andhra Pradesh State. The Home Secretary gave directions to MHA to examine the matter.

5) Cash Credit Amount due to A.P State Civil Supplies Corporation for Telangana State Civil Supplies and release of rice subsidy:- There is a dispute with regard to cash credit liability which was utilized by Telangana State Civil Supplies Corporation Ltd. before the corporation was divided. Government of Telangana has agreed to pay the principal amount of the cash credit subject to the condition that A.P State Civil Supplies Corporation Ltd. gives an undertaking that the subsidy to be
released by the Government of India would be transferred to Telangana State. There is a dispute regarding even on the principal amount and which was originally agreed to Rs.354 crores and is subsequently revised. Telangana State has agreed to consult the banks in this regard and with Andhra Pradesh to repay the reconciled principal amount. The subsidy amount due to Telangana State would be transferred as and when it is received by Government of India.

6) Apportionment of Institutions not mentioned anywhere in the Act:- Andhra Pradesh has raised the issue of apportionment of 12 institutes which are not mentioned anywhere in the Act, Telangana State has objected to the same saying that this would amount to amendment to Act, and the process of division would never end because there may be other institutions which are not mentioned in the Act. The Home Secretary requested MHA to examine the matter in consultation with Law Department.

7) Division of Cash and Bank Balance (Funds under Centrally sponsored Schemes/Expenditure on Common Institutions/ public debt pertaining to Externally Aided Projects:- The three issues related to division of funds under Centrally Sponsored Schemes, expenditure on common institutions and public debt related to externally aided projects (EAPs) was discussed and agreed that both the states should take the help of C&AG of India to settle the same.


8) Delay in release of funds for the Development of backward districts in Telangana:- On the request of Government of Telangana, the Home Secretary has instructed Ministry of Finance to release the funds.

9) Establishment of Tribal University:- The Chief Secretary, Government of Telangana has raised the issue of Establishment of Tribal University as per the provisions of A.P Reorganization Act, 2014. The land required for the same was also provided.
The Home Secretary has directed the Ministry of Higher Education, Government of India examine the matter and take necessary action expeditiously.

10) Establishment of Rail Coach Factory in the State of Telangana:- Telangana State has raised the issue of establishment of Rail Coach Factory in Kazipet and informed that Home Secretary that the required land of 150 acres was already mutated in favour of Railways. The Home Secretary has instructed the Ministry of Railways to examine the matter and take necessary action expeditiously.

11) Removal of Anomaly in Taxation Matters:- Government of Andhra Pradesh wanted A.P Reorganization Act to be amended to remove the matters related to anomaly in taxation matters mentioned in Section 50, 51 and 56. Government of Telangana has strongly objected to amending the Act at this length of time after 8 years of formation of Telangana.



List of Officers from Government of Telangana

1) Sri Somesh Kumar, IAS, Chief Secretary
2) Dr. Sunil Sharma, IAS, Spl. Chief Secretary, Energy Department
3) Sri K. Ramakrishna Rao, IAS, Spl. Chief Secretary, Finance & SR
4) Sri Jayesh Ranjan, IAS, Principal Secretary, I&C Dept.
5) Sri K. S. Sreenivas Raju, IAS, Secretary, TR&B Dept.
6) Sri Anil Kumar, IAS (Retd.), Commissioner, Civil Supplies
7) Dr. Gaurav Uppal, IAS, Resident Commissioner, Telangana Bhavan
8) Sri Srinivas Rao, Joint Managing Director, TS TRANSCO
9) Sri Chandrasekhar, Director Operations, SCCL