AP, TS not notified transfer scheme of power utilities’ assets, liabilities

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As the Centre directed TS to pay dues of Rs 6,756.22 crore to AP, the latter can withdraw the amount from Telangana power utilities and pay the remaining amount to TS, meaning nearly Rs 11,000 crore. — Representational Image/AFP



Vijayawada: Even as both Andhra Pradesh and Telagnana make claims and counterclaims on power dues, both the states have not notified the mandatory transfer scheme for assets and liabilities of power utilities so far. Hence, any claim on a transfer lacks legal backing.

Section 53 of AP Reorganisation Act, 2014 specifies matters relating to assets and liabilities of state undertakings. It states that the assets and liabilities of any commercial or industrial undertaking in the existing state of AP shall be passed on to the state in which that area is included on the appointed day, irrespective of the location of its headquarters.

In case the operation of such undertaking becomes inter-state, the assets and  liabilities of the operational units shall be apportioned between the two successor states on location-basis. The headquarters of such an undertaking shall be apportioned between the two emergent states on the basis of their population ratio of 58 for AP and 42 for TS.

With regard to Genco having total assets of Rs 26,000 crore, Telangana’s shareis Rs 15,000 crore and AP’s Rs 11,000 crore. The liabilities also are estimatedin the same ratio whereas TS could claim Rs 15,000 crore and AP Rs 11,000 crore.

Both the AP Mineral Development Corporation and its counterpart in Telanganaentered into a transfer scheme and shared the assets and liabilities, wherein the Telangana high court directed the AP government to pay its share of dues worth Rs 445 crore to TS.

Referring to Telangana chief minister Chandrashekar Rao’s recent statementthat AP power utilities owed TS Rs 17,828 crore. As the Centre directed TS topay dues of Rs 6,756.22 crore to AP, the latter can withdraw the amount fromTelangana power utilities and pay the remaining amount to TS, meaning nearlyRs 11,000 crore.

The AP government is treading cautiously on the issue as it is not just settling the financial dues of power utilities between it and TS but political sensitivity is also involved. The AP government does not want to antagonize its neighbour on this issue, it appeared.

Moreover, the AP government is preparing its reply point-wise to counter the claims of the TS government and it is also preparing to file a counter in the TS high court. The case is posted for hearing on Oct. 13 with more stress placed on the fact that no agreement was entered into between both the states on transfer of assets and  liabilities despite it being mandatory as per norms of Split Act, 2014.

AP power authorities have been maintaining that the state’s due is not more than Rs 3,000 crore to TS in relation to power utilities.



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