VIJAYAWADA: Andhra Pradesh has reportedly sought amendments to the Andhra Pradesh Reorganisation Act, 2014, for removal of “anomaly” in taxation matters. The State made this plea before the Dispute Resolution Sub-Committee constituted by the Union Ministry of Home Affairs to resolve the issues between AP and Telangana.
At the first meeting of the sub-committee, Andhra Pradesh’s plea was opposed by Telangana officials, who were of the view that any amendment, after seven-and-a-half years, will open more litigations and complicate the already settled issues.With opposition from Telangana, the AP officials proposed that the Centre shall compensate the amount of loss to AP, if amendment is not feasible.
It was learnt that the Ministry of Home Affairs Joint Secretary (Centre-State), who chaired the meeting, did not give any commitment stating that it was not a bilateral issue. Principal Secretary (finance) S S Rawat represented AP in the meeting.
During the meeting, AP has requested the Centre for settlement of Rs 3,442 crore, which is payable by Telangana Genco, as a stand-alone settlement. On the other hand, the Telangana officials informed the Centre that the Telangana power utilities had to receive Rs 12,532 crore from AP Discoms.
Telangana officials also raised the issue of sudden stoppage of power supply by APGenco to Telangana after formation of the State and the efforts made by Telangana to purchase power at high rates from the market due to unilateral cancellation of Power Purchase Agreement entered in the combined state with power companies. They also said their state was deprived of low-cost power from Sileru Hydro power project due to which Telangana Discoms had to procure high-cost power and consequently incurred huge financial losses.
If all the dues are considered such as debt servicing of Anantapur and Kurnool districts and costs incurred due to purchase of thermal power, the Telangana utilities in fact have to receive a net amount of Rs 12,532 crore and not the other way round, they argued. The MHA joint secretary was also informed about the court case filed by APGENCO in the High Court for payment of power dues, ignoring the claims of Telangana. Telangana officials informed that they were ready for settlement of the dispute through mutual agreement between AP power utilities and Telangana Discoms provided the court case is withdrawn by AP Genco.
With regard to the division of AP State Finance Corporation (APSFC), the official was told that the issue is pending due to court cases and unless the cases are withdrawn, further progress on the bifurcation of APSFC cannot be made, the TS officials said.
The MHA joint secretary asked the TS officials to send details of the cash balances and bank deposits receivable from AP. Telangana has to receive Rs 495.21 crore from AP with regard to Central Sector Schemes (CSS).
AP agrees to pay Rs 315.76 cr for common institutions
AP gave an undertaking for payment of Rs 315.76 crore, the amount spent by Telangana on common institutions such as High Court, Raj Bhavan etc. Telangana has to receive Rs 464.39 crore from Building and other Construction Workers Welfare Board (BOCWWB), Labour Welfare Board fund and resumption of Net Credit Carried Forward (NCCF) of Rs 208.24 crore.