Why in News?

• In a significant first step towards resolving the pending issues between Telangana and Andhra Pradesh resulting from the Andhra Pradesh Reorganisation Act 2014, the CMs of both states agreed to establish two committees.
• The two committees - one composed of ministers and the other of officials - will develop a plan for resolving the issues.

What’s in Today’s Article?

• Issues Pending Between Telangana and Andhra Pradesh
• How will the Issue be Handled by the Two Committees?

Issues Pending Between Telangana and Andhra Pradesh:

• Background:
  • After the bifurcation of the erstwhile united Andhra Pradesh (AP) in 2014, division of assets and liabilities between the two States remains to be a challenge.
  • The States make their own interpretation of the provisions under the Andhra Pradesh Reorganisation Act 2014.
• What assets are to be divided?
  • There are 91 institutions under Schedule IX and 142 institutions under Schedule X of the Act.
  • Another 12 institutions, not mentioned in the Act, have also become contentious between the States.
  • Hence, the issue involves 245 institutions with a total fixed asset value of ₹1.42 lakh crore.
  • Several attempts to resolve the issue bilaterally have ended in failure.
• Key bone of contention between the two States:
  • The division of several institutions like the RTC headquarters and the Deccan Infrastructure and Landholdings Limited (DIL) have become the key bone of contention between the two States.
  • These institutions have huge land parcels in their possession.
• What are the AP government's claims?
  • The AP government is firm on the implementation of the recommendations given by the expert committee (headed by Sheela Bhide - a retired bureaucrat) for bifurcation of 89 out of the 91 Schedule IX institutions.
  • But it blames the Telangana government for selectively accepting the recommendations, resulting in delays in division of assets and liabilities.
• What is the stand of Telangana government?
  • It has contended that the expert committee’s recommendations were against the interests of Telangana.
  • The assets located outside the erstwhile united State like Andhra Pradesh Bhavan in New Delhi could be divided between the States on the basis of population as per the provisions of the Act.
• Role played by the Centre:
  • The Act empowers the Union Government to intervene as and when needed.
  • However, several meetings of the dispute resolution committee headed by the Union Home Secretary could not break the impasse even after 10 years of bifurcation.

How will the Issue be Handled by the Two Committees?

• The primary issue before the committees is the apportionment of assets and liabilities of different institutions listed under Schedule IX and X, and those that did not find mention in the Reorganisation Act.
• The officials committee would deliberate on the issues that could be resolved at their level across the table.
• The issues that could not be resolved at the official level would then be forwarded to the committee comprising select ministers from the two States for finding a solution to the pending issues.
• If there are some issues remaining after the Ministerial committee finalises modalities, they will be referred to the Chief Ministers of the two States.