NEW QUARREL OVER FUNDS FROM CENTRE

Adjustment of Central funds between TS and AP has taken new turn with AP claiming `3,000 crore from TS, and TS officials saying AP owed `1,000 crore.

The funds pertain to centrally sponsored schemes, reimbursement of external aided projects and excess payment made for Power Finance Corporation bonds that were released just after bifurcation.

AP officials said that TSGenco has to pay `3,000 crore for supplying power to TS, which it has not cleared for months. TS officials say that the state government has nothing to do with the issue and it is for the Gencos of two states to resolve this issue.

The funds were released into AP’s account. When TS officials asked for the funds, the Centre realised the error and asked it to take funds on the ratio of population from AP. Further releases were made to the TS account.

Under centrally sponsored schemes, the Centre has released `1,621.52 crore to AP and TS claims `700 crore of this. TS officials said AP had released just `143.44 crore; when questioned, AP officials said they would reexamine the issue.

The Centre released `478.68 crore as reimbursement for externally aided projects. TS officials said that their share was `108.67 crore but AP officials pegged it at `16.96 crore.