Telangana, Andhra govt bifurcation issue to be discussed on February 17

In a bid to discuss the Telangana and Andhra Pradesh bifurcation issues, the Ministry of Home Affairs has invited the Chief Secretaries of Andhra Pradesh and Telangana to participate in the discussions in the Dispute Resolution Sub Committee scheduled on February 17 to discuss the pending issues arising out of the Andhra Pradesh Reorganization Act, 2014.

A committee under the Chairmanship of Joint Secretary (CS), Ministry of Home Affairs will carry out the preparatory work and recommend practical ways to resolve the bilateral issues. It is the first meeting of the Sub Committee. This will be held via video conference.

The agenda issues including “Special Category Status, Division of AP State Finance Corporation, Settlement of Power Utilities of AP and Telangana, Removal of anomaly in taxation matters, division of cash balance and bank deposits, cash credit by Andhra Pradesh State Civil Supplies Corporation Limited (APSCSCL) and Telangana State Civil Supplies Corporation Limited (TSCSCL), resource gap, development grant for 7 backward districts of the State covering Rayalaseema and north coastal region and tax incentives. ”

Meanwhile, last year in November, Andhra Pradesh Chief Minister YS Jagan Mohan Reddy raised the issues of Polavaram, Special Category Status and other promises made during the state bifurcation at the 29th Southern Zonal Council meeting.

Speaking at the meeting, chaired by Union Home Minister Amit Shah, the Chief Minister sought the Centre's help in keeping up the promises made during State division, those in the Act and those issued in the Parliament.

The Chief Minister said, "even after seven years of bifurcation, the majority of the commitments remain unfulfilled and Andhra Pradesh continues to face immense economic hardships and deprivation."

Reddy has sought that full funding be provided for the Polavaram project and the completion of the project by the Centre be ensured in line with the letter and spirit of the provisions of the Andhra Pradesh Reorganization Act, 2014.

He also requested to accord "Special Category Status to the state." The Chief Minister said the total resource gap for the first financial year after state bifurcation is ₹22,948.76 crores.

However, the Central Government has subsequently introduced a new concept of "Standardized Expenditure" and conveyed that their liability to compensate the State is only to the tune of Rs. 4,117.89 crores, he said.