Division of assets becomes a drag

The APSFC is another institution of the erstwhile State awaiting the Government of India’s intervention to resolve the differences between the two Telugu States of Andhra Pradesh and Telangana over the division of assets.

APSFC set up under a Central Act in 1953 is governed by the special provisions unlike other corporations in the Schedule IX which are more like State government owned companies. The division of assets has run into problems as the two States did not reach a consensus.

The APSFC Board was required to formulate a scheme under the AP State Reorganisation Act, 2014 for the division of assets and it did. But Telangana division raised objections that the scheme was finalised without representatives of Telangana in the Board and it objected to Board’s decision to divide Gajularamaram land asset equally.

The Corporation has 283 acres of land at Gajularamaram in Ranga Reddy district and it was allotted by the Combined AP government as its equity which was valued at ₹40 lakh per acre then. The land was not developed till 2014 for monetising it. While AP government wanted it to be shared equally, Telangana contended that the entire land belonged to it as it was located in its jurisdiction.

The headquarters office at Abids was, however, divided between AP and Telangana divisions in the ratio of 58: 42 on the basis of population of two States. Another issue was division of building constructed in one acre of land in Financial District before bifurcation. Board divided it in the ratio of 60:40 and Telangana division disagreed on the ground that it was not headquarters. AP division insisted it was envisaged to serve as back office of the headquarters.

The APSFC gets its funds through term loans from banks, non-Statutory Liquidity Ratio (SLR) bonds and SIDBI refinancing and till 2017 bank loans of ₹650 crore were raised from Canara, Vijaya, Bank of India and Andhra Bank approved by the Board. However after Mr. Jain took over as new MD, AP government took full control of APSFC and did not process the ₹400 crore bank loan already sanctioned for 2017-18.

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Printable version | Jun 20, 2021 6:04:39 PM | https://www.thehindu.com/news/cities/Hyderabad/division-of-assets-becomes-a-drag/article27061368.ece

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