08/3/15 5:39 AM

Fresh Conflict Arising Between AP & Telangana


In present scenario where AP and Telangana have already been fighting regarding segregation of Electricity employees, a fresh conflict is arising. It is known that it was mentioned in state reorganization act that 52% of assets and debts must be given to AP and 42% to Telangana. But it electricity sector alone, division was made based on utilization, after which the % allotted to AP is 40.46 and to Telangana is 59.54%.




Power Finance Corporations was set up for buildings of electrical projects in united Andhra Pradesh. Through this, bonds were allotted by corporation, funds were collected and construction of projects began. By the time of state division, allotted bonds amounting to Rs.5,894 crore. Since allotment of power to AP and Telangana has been done based on utilization, allotment of these debts to both states was done based on it and Telangana received Rs.3,509 crore debts and AP, Rs. 2,385 crore debts to clear. Interest on the bonds has to be paid at State Bank of Hyderabad.

Things went on smoothly for some period of time and that was when the Telangana government raised a new issue. It said that only power allotment was done based on utilization but allotment of bonds needs to be done based on population. Telangana government mentioned in its letter to AP that it has already paid huge amounts as interest to bank and so will not pay any further. As a result, payment of interest was stopped, bank started issuing notices and superior officials had to come into picture. AP officials argued how considerations could be different for two aspects regarding the same electricity sector. But Telangana stood still. With this, government of AP wrote to the central government and Governor mentioning that they are being troubled and orders should be passed to Telangana government.



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