The Union Home Ministry has asked the governments of Telangana and Andhra Pradesh to ensure division of cash credit amount pertaining to the civil supplies corporations of the two States on the basis of agreed formula to share assets and liabilities on the basis of their population ratio.
The Home Ministry’s high level meeting held last month comes as part of efforts to bring an end to the stalemate over the apportionment of cash credit between the two Telugu States. The Telangana Civil Supplies Corporation said an amount of ₹1,087 crore was pending as share of cash credit of AP government whereas the AP corporation fixed the sum at ₹1,775.9 crore.
The difference in the amount, the AP representatives said, was due to adjustment of future receivables by the Telangana government which largely include the Central government’s subsidy that would be sanctioned only after final accounts were settled.
They said the Centre would not sanction 100 % of the subsidy claims and the sanctioned amount would range from 60 % to 80 % of the claimed amount usually. The subsidy was based on procurement volume and if the subsidy was not released fully, the Telangana government should bear the balance amount, they contended.
The Union Ministry, however, wanted the two States to leave aside the subsidy issue and divide the cash credit amount on the basis of the agreed formula. Whenever the subsidy was received from the Central government, the same could be divided between the two States as per the agreement. And, both States agreed to the suggestion, according to the minutes of the meeting.
AP Bhavan division
The meeting also discussed about the division of Andhra Pradesh Bhavan in New Delhi and both the States were informed that there existed a clear provision in Section 48 (1) of the Reorganisation Act 2014 for the division on basis of population ratio. The Home Ministry said given the practical difficulty in dividing the property, it was decided that the total land and floor area ratio would be taken into account for the purpose of divisibility.
The Union Ministry had received two options to divide the properties of AP Bhavan from the AP government and the same were forwarded to the Telangana government for its response. The issue was currently under examination by the Telangana government, the Union Home Secretary said and expressed desire that the division be settled amicably at an early date.
