CENTRE SIDES WITH TS ON HQ BIFURCATION

The Union home ministry has upheld the argument put forward by the TS government on bifurcation of common institutions listed under Schedule IX of the AP Reorganisation Act, 2014. The home ministry clarified this week that “headquarters” comprises only the “operational unit or building” from where the institution functions, and not the other buildings or lands belonging to that institution.

The ministry stated that only the HQ should be bifurcated between AP and TS in the ratio of population, which is 52:48. This has saved the TS of paying a huge compensation to AP — which had demanded over `50,000 crore on this count. AP has all along been arguing that HQ comprised the operational unit/building and other assets belonging to an institution. The TS steadfastly rejected this by saying headquarters comprised only the operational unit/building.

The Union home ministry has upheld the argument put forward by the TS government on bifurcation of common institutions listed under Schedule IX of the AP Reorganisation Act, 2014.

The home ministry clarified this week that “headquarters” comprises the “operational unit or building” from where the institution functions, and not the other buildings or land (common facilities) of that institution.

As the issue persisted, the home ministry has come up with the clarification, which is in conformity with the TS stand. The ministry issued a letter to this effect dated May 18, which was received by AP and TS on Friday.

APSRTC has a huge Bus Bhavan near VST, a kalyana mandapam in Bagh Lingampally, and a hospital in Tarnaka, besides land parcels. AP sought bifurcation of all the assets but the TS sought a bifurcation of only Bus Bhavan, which is an operational unit from where it functions.

As many as 90 institutions listed under Schedule IX and located in Hyderabad have assets worth nearly `1 lakh crore. Both AP and TS were engaged in a bitter fight over control of these institutions for the last three years since the bifurcation. Both the states argued over what comprised a “headquarters” which should be bifurcated.

The latest order from the Centre paves the way for bifurcation of the APSRTC, AP Agros Ltd, AP Diary Development Corporation and the AP Foods, which own huge assets.

Though not all of these 90 institutions are contentious, a few have become so and both the states have taken recourse to take legal action as in the case of APSCHE.

The Sheela Bhide Committee, tasked with the division of assets between AP and TS, gave instructions to 31 corporations and companies under Schedule IX to complete their audit of accounts, prepare demerger proposals and submit them by August 15 last. It submitted reports for 59 companies.

In the case of AP Dairy Development Corporation, AP Dairy Development Co-operative Federation, APSRTC and others, the TS government addressed a letter to the Centre regarding the definition of “headquarters” and the issue of “common facilities”.