Andhra Pradesh government to move Centre on asset split

Hyderabad: The AP government has decided to challenge the Centre’s order setting out the definition of the term ‘headquarters’ in the sharing of assets of institutions listed in the Ninth Schedule of the bifurcation Act between the two Telugu states. AP Chief Minister N. Chandrababu Naidu has directed the Advocate General to take up the issue with the Centre.

The AP government is claiming a share in all the Ninth Schedule institutions located in Telangana state, which the TS government opposes. Both governments differ on the definition of what a “headquarters” constitutes. Giving clarity on the issue, the Union home ministry had told both the state governments last week that in the case of one single comprehensive state undertaking (which includes the headquarters and operational units in one common facility) which is exclusively located in, or operations are confined to, one local area, it shall be bifurcated on the basis of location as per sub-section (1) of Section 53 of the Reorganisation Act.

It said if the undertaking had inter-state operations then, as per the proviso to Section 53, its headquarters is to be bifurcated on population ratio and the operational units are to be bifurcated on location basis. In the case of more than one common facility, such as workshops, guesthouses and operational plants, such entities cannot be construed to be a part of the “headquarters”. The term headquarters would be co-terminus with the principal office of the undertaking as per its ordinary dictionary meaning, the Centre said. AP officials have estimated that the state would lose assets about Rs 6,000 crore with the decision of the Centre. The AP government claims the assets of Transco, Genco, RTC, AP Dairy Development Federation, AP Foods, Agro industries and others, many of which are located in Telangana state.

A senior officer of the AP government said the Supreme Court in its orders on the Tenth Schedule institutions had directed the Centre “to do justice” to both states. In the case of the Ninth Schedule institutions, the Centre had done injustice to AP, he said.