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Andhra Pradesh dumps losing firms

Posted February 23rd, 2015, 11:31 AM IST

Andhra Pradesh dumps losing firms

Hyderabad: The Andhra Pradesh government has decided to leave a few institutions listed in the 10th Schedule of the State Reorganisation Act to the Telangana government along with their assets, liabilities and staff.

Both AP and Telangana governments have previously complained to the Centre about each other over the institutions listed in the 10th Schedule, claiming rights over them.

The AP government has now decided that the institutions listed in the 10th Schedule of the State Reorganisation Act, which are not of any relevance to the state, can be left to Telangana.

Some of these institutions are running in losses and would be a financial burden on the AP government. Officials thus explained that it would be better to relinquish the state’s rights over them.

The AP government has formed a four-member committee to study these institutions. The committee comprises C.S. Rao, AP government advisor (finance), C. Kutumba Rao, vice-chairman of the state planning board, K. Narasimha Murthy, finance expert, and N. Yogeswara Sastry, director, planning department.

There are 107 institutions in the 10th schedule of the State Reorganisation Act and the committee will identify the institutions that are not of any relevance to the state of Andhra Pradesh.

It shall also come up with appropriate ways to share the corpus available with the institutions, whether it necessary to replicate any institution in the residuary state of Andhra Pradesh, how to deal with the entities other than training institutions such as universities, departments, boards etc., how to deal with the institutions which do not have branches/centres in Andhra Pradesh and to propose suitable joint management systems for these institutions.

The committee shall also examine these issues in respect of the entities, which do not find place in the Reorganisation Act. The committee shall examine these issues and make appropriate recommendations keeping in mind the interests of Andhra Pradesh.

The committee has been given two months to submit its recommendations. Meanwhile, the argument of the Telangana government is that since most of the institutions are located at Hyderabad, they belong to Telangana and they should only provide services to the AP government.

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