Andhra Pradesh

APHB seeks due revenue sharein assets created in Hyderabad

Andhra Pradesh Housing Board is in a predicament post bifurcation. The reason, it has no share in the revenue generated out of assets it created in Hyderabad in the united State.

The Housing Department which is planning to shift both the head offices of AP Housing Board and AP Housing Corporation to Vijayawada is worried how the Housing Board will meet the establishment cost and employees salary bill without due share in the assets it created in the joint State capital.

The APHB had created close to five lakh sft of office and commercial space in Hyderabad alone and rented them out for State and Central government offices, private and commercial establishments particularly on MJ Road. These assets yield an annual revenue of Rs.21 crore.

In line with the AP State Reorganisation Act, the assets and liabilities of the AP Housing Board were apportioned between the two successor States of Telangana and Andhra Pradesh. The Act distributed the assets between the two States under as is where is principle. But the hitch, according to sources is the board, with no budget support from the State, earned its revenue from the assets concentrated only in Hyderabad to the neglect of other areas in the united State.

The State Reorganisation Act allotted the entire revenue of APHB’s assets in Hyderabad only to Telangana State but divided its liabilities between the two States on the basis of population ration of 58:42. As a result while Andhra Pradesh would have no share in Rs.21 crore revenue generated by the Board’s assets in Hyderabad, it however had to bear the burden of liabilities.

“The Board is writing to the AP government about the anomaly with a request to set it right and claim due revenue share. Otherwise it will be difficult for the Housing Board to bear the establishment expenditure and the salary bill of the employees. Both the State Governments should take a decision,” sources said.

The AP Housing Board is among the institutions listed under schedule IX and the bifurcation process is not completed yet though a resolution is passed by the combined State board for creating Housing Board for the new Telangana State. The bifurcation of posts, employees and liabilities however has been done.

This article is closed for comments.
Please Email the Editor

Printable version | Dec 2, 2020 8:07:12 AM | https://www.thehindu.com/news/national/andhra-pradesh/aphb-seeks-due-revenue-sharein-assets-created-in-hyderabad/article6101698.ece

Next Story