Telangana, Andhra Pradesh engage in slugfest over Singareni unit

Hyderabad: Telangana state and Andhra Pradesh have started yet another fight to take control of the AP Heavy Machinery and Engg Ltd (APHMEL), located in Kondapalli, Vijayawada. It is a subsidiary of Singareni Collieries, in which the TS government has a major stake.

Chief secretary S.K. Joshi on Monday complained to the Centre saying that AP government was trying to unilaterally takeover APHMEL on the ground that it is located in its geographical area. This is a gross violation of the AP Reorganisation Act, 2014.

TS argues that Singareni Collieries has 81.54 stake in APHMEL. Since it belongs to Singareni Collieries, the TS government will have complete rights and the AP government cannot take over its control.

Mr Joshi said the managing director of APHMEL had submitted a demerger proposal to the Sheela Bhide committee to bifurcate assets. “The committee has given its recommendation to the effect that APHMEL shall pass to the residual state of Andhra Pradesh in its  entirety in terms of Section 53(1) of the AP Reorganisation Act, 2014 since its all  the assets and liabilities are located in that state,” Mr Joshi wrote to the Union home secretary.

He said the recommendation was “not only in gross violation of the provisions of the AP Reorganisation Act, but also contrary to the proposal submitted APHMEL itself”. The recommendation was made disregarding the objections raised by committe member A.K. Goel.

He said the SCCL had acquired 81.54 per cent of equity in APHMEL in 1998-99 due to the insistence of the undivided AP government. The other shareholders are: AP Industrial Development Corporation (APIDC), the erstwhile government of Andhra Pradesh and public shareholders.

The recommendations of the committee, if acted upon, would not only cause irreparable loss and damage to Telangana state and the Centre as SCCL is a joint company of the state and the Centre. he said.