Corporations split in limbo

 

These corporations own assets worth thousands of crores of rupees in both the states. The plan was to distribute them in the ratio of 58:42 between AP and TS, in proportionate to their populations, which has been kept on hold for long. 

 

The Sheela Bhide Committee was constituted to finalise the distribution more than seven months ago, but it has failed to complete the process for a single corporation so far. 

 

With this delay and uncertainty over the division, both states are making things further complicated by trying to gain control over them and by freezing bank accounts and resorting to diversion of funds.

 

The APSRTC alone, which is yet to be divided, owns properties worth Rs 40,000 crore in both the state and also has accumulated losses of nearly Rs 45,000 crore. 

Other corporations too, that were formed on the basis of the Corporation Act, such as the AP Tourism Corporation and AP Finance Corporation, are yet to be demerged.

 

The TS government has now come out with a fresh argument that the distribution of APSRTC assets should be done based on the territorial principle as per the AP Reorganisation Act, which means properties located in a particular state should belong to that state only.

 

This is being opposed by AP since APSRTC has prime properties only in Telangana, mostly in Hyderabad, and without a share in these properties, the APSTRC in AP will collapse.

AP has been arguing that APSRTC assets located in Hyderabad including Bus Bhavan on RTC X Roads and RTC hospital in Tarnaka should go to AP in proportionate to its population of 58 per cent.

 

Similar disputes has cropped up between AP and TS with regard to division of APIIC, APSCHE, APMDC etc. All these corporations have crores of rupees of bank deposits in various branches in Hyderabad and both the governments are writing letters to banks not to allow financial transactions of any government without the knowledge of other.

 

The governments even wrote to the banks to freeze the accounts.Not only this, the employees working in these corporations are also facing difficulties in discharging their duties in the absence of clarity regarding which government’s instructions to follow.

 

This is often leading to tussles between employees from both the states as each is insisting that the other follow their instructions. The committee is supposed to complete the division of all the 85 corporations by June 1.