Telangana, AP bifurcation: Rs 8,000 crore lie unused in banks
Deccan Chronicle| SNCN Acharyulu
In the Act, Centre has laid down the rules regarding bifurcation of assets, liabilities, and employees of these institutions.
Hyderabad: The 9th and 10th Schedule institutions listed in the AP Reorganisation Act have not been bifurcated between Telangana and Andhra Pradesh even three-and-a-half-years after the state split. As a result, about Rs 8,000 crore is parked in various banks and neither state government can use the money.
Some of these institutions are starved of funds for development activities, as neither government is in a position to allot funds. The banks are, however, paying interest on the funds.
There are 91 institutions in the 9th Schedule and 142 in the 10th Schedule, including government departments, universities and others listed in the Act by the Centre at the time of the bifurcation. In the Act, the Centre has laid down the rules regarding bifurcation of assets, liabilities, and employees of these institutions.
But both state governments hold that these rules are contradictory and are using them to their advantage.
The Centre appointed committees to bifurcate assets and liabilities of these institutions, but the committees have been unable to bring about an understanding between the two state governments, and both have gone to the court.
AP Genco is worth Rs 2,448 crore
In the top 10 institutions of the 9th schedule, Rs 6,481 crore is available. AP Genco has the highest amount of Rs 2,448 crore and the AP Marketing Federation has the lowest amount of Rs 209 crore.
The top 10 institutions in the 10th schedule have funds of Rs 2,994 crore. Around Rs 1,559 crore was divided between the two states but Rs 1,435 crore is yet to be divided.
NTR Health University has the most funds — Rs 425 crore — and the Centre for Good Governance, the lowest — Rs 109 crore.
Some institutions badly require the funds and cannot get them in any other way from state governments that are both facing financial crises, yet they are unable to tap funds that are legitimately theirs until the two states get serious about how to divide the institutions.