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Division and rebuilding of common Institutions

Latest Issue:

Chandrababu Naidu expressed displeasure over Centre not completing the division of
government institutions listed under Schedule 9 and 10 of the AP Reorganisation Act, 2014,
even two years after the bifurcation of the state.

It was the Centre’s responsibility to resolve the issue expeditiously

The Ninth Schedule- Government Companies and Corporations  89

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Some Govt Companies under Schedule 9 – JUST FOR A BASIC IDEA

Sl. No. Name of Government Company Address

1. Andhra Pradesh State Seeds Development S-10-193, 2nd Floor,

Corporation Ltd.,
HACA Bhavan, Opp.
Public Gardens,
Hyderabad-500 004.

2. Andhra Pradesh State Agro Industrial Development 504, Hermitage Office

Corporation Ltd.,
Complex, Hill Fort Road,
Hyderabad-500 004.

3. Andhra Pradesh State Warehousing Corporation. Warehousing Sadan,

2nd Floor, Behind
Gandhi Bhavan,
Nampally,
Hyderabad- 500 001.

 AP argued that the 107 institutions listed under schedule X, most of them located in
Hyderabad, should be divided between the two successor States as per the State
Reorganisation Act and jointly allowed to have access to services of these institutions

 Telangana emphasised that they belonged to the State in whose territory they are
located and their services could be availed through coordination between the two
governments.

 Andhra Pradesh officials pointed out that schedule X institutions were established
investing common resources of both the States over a period of time in the combined
State but employees belonging to AP working in these institutions are being
discriminated.

 Referring to the 89 institutions listed under schedule IX, both the States agreed to await
the report of Sheela Bhide committee for apportioning of assets.
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 Sheela Bhide committee appointed to distribute assets and liabilities between

Telangana and Andhra Pradesh
 Tenure of the Centre-appointed four-member expert committee headed by Sheela Bhide
for the division of assets and liabilities, and employees of Schedule IX companies and
corporations between Andhra Pradesh and Telangana States has been extended till
February 28, 2017.
 Committee has been extended by the Government of India, and basing on the same the
State government has notified the extension asking all the heads of the Public Sector
Undertakings and Corporations to attend the meetings convened by the committee to
assist in the process.
 It may be recalled here that the tenure of the committee has expired on August 30,
2016.
 A K Goel and K V Rao and Financial Expert K Narasimha Murthy  other members of
the Sheela Bhide committee.

 AP said headquarters should include common centres and facilities too along with the
registered head office, Telangana rejected the interpretation.

 For instance, in APSRTC, Bus Bhavan alone would qualify as the headquarters and not
other centres, including hospital, it said.

 The differences persisted on distribution of employees in these institutions too as

Telangana government favoured nativity as the basis while AP wanted Kamalnathan
guidelines for State-level staff distribution to be adopted.

PLEASE REFER THIS DOC: http://www.ap.gov.in/whats-new/Guidelines.pdf

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Tenth Schedule - Continuance of Facilities In Certain State Institutions

List of Training Institutions/Centres  107

Some Training Institutions:

1. Andhra Pradesh State Co-operative Union, Hyderabad.
2. Andhra Pradesh Study Circle for Backward Classes, Visakhapatnam.
3. Environment Protection Training and Research Institute, Hyderabad.
4. Andhra Pradesh Forest Academy, Rangareddy District

 Supreme Court has recently ruled out that Telangana cannot claim the absolute right
over the institutions that are listed under Tenth Schedule of the Andhra Pradesh
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Reorganization Act 2014 (APRA) and that are located in the capital city of Hyderabad,
with is sharing with Andhra Pradesh.

 This has come again in limelight with Supreme Court judgement that has brought down
the curtains on a bitter war over the assets and liabilities of Andhra Pradesh State
Council for Higher Education (APSCHE) between two Telugu States, out of 107
institutions listed under the Tenth Schedule in the Act.

 Heavy emphasis has also been placed on Section 75 of the APRA, on the ground that the
assets belonging to the specified institutions of the Tenth Schedule exclusively belong to
the State institutions, since the Act does not provide any apportionment of them.”

 Section 75 reads as follows:

(1) The Government of the State of Andhra Pradesh or the State of Telangana, as the case
may be, shall, in respect of the institutions specified in the Tenth Schedule to this Act,
located in that State, continue to provide facilities to the people of the other State which
shall not, in any respect, be less favourable to such people than what were being provided
to them before the appointed day, for such period and upon such terms and conditions as
may be agreed upon between the two State Governments within a period of one year
from the appointed day or, if no agreement is reached within the said period, as may be
fixed by order of the Central Government;

(2) The Central Government may, at any time within one year from the appointed day, by
notification in the Official Gazette, specify in the Tenth Schedule referred to in
subsection (1) any other institution existing on the appointed day in the States of Andhra
Pradesh and Telangana and, on the issue of such notification, such Schedule shall be
deemed to be amended by the inclusion of the said institution therein.

 Supreme Court has pronounced that the assets be divided between two states in the
population ratio of 58.32 : 41.68 as per 2011 Census.

 The APSCHE advises the State hovernment in matters relating to higher education in the
State, and to oversee its development for perspective planning. Actually, under APRA,
APSCHE is required to continue its functions for both States of Andhra Pradesh
and Telangana respectively, until an agreement was reached between two States.
Soon after, the Telangana State Council of Higher Education (TSC) came into existence,
to discharge the same functions for the State of Telangana, as the APSC does for Andhra
Pradesh.

 This could be made clear as per APRA, 107 institutions are listed under tenth Schedule
and under Section 75. As per Act it indicates that each State has control and ownership
of the institutions located in that State and mandates each State to provide services
of the institutions located in that State to the other State on mutually agreed terms
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 Out of 107 institutions, 97 are located in Telangana. For this reason, AP leaders took the
position that as the institutions were built by the common resources of the erstwhile state,
the ownership and/management of these institutions should be divided on population
ratio, that is, 58% for AP and 42% for Telangana.

 The first case was that of the AP State Council for Higher Education (APSCHE). The
Telangana Government appointed a Chairman to head their Telangana State Council for
Higher Education (TSCHE) and deputed him to operate from APSCHE headquarters in
Hyderabad. The Chairman was not given any facilities or cooperation to assist his urgent
work regarding examinations like EAMCET etc.

 The Telangana Government then used powers under Section 101 of the APRA to take
over the APSCHE and rename it as TSCHE. It also instructed bankers not to honour
cheques signed by the former APSCHE officials and froze all APSCHE funds. Promptly,
the APSCHE went to the High Court. The High Court observed that the assets and
properties and funds whatever lying at the present location of APSCHE belong to
TSCHE and the action of the Telangana government was in keeping with the powers
delegated to it by Parliament and as a result, the APSCHE ceased to exist.

 Telangana government informed AP that it had no need of 6 AP institutions but wanted

42% of the services of (1) Andhra Pradesh Study Circle for Backward Classes (2) State
Animal Husbandry Training Centre (3) Sri Padmavathi Mahila University and (4)
Dravidian University. It also offered to pay for these services based on mutual usage. But
no response has come from AP government.

 Telangana Government on 27th May 2015 wrote to the Andhra Pradesh government
stating that, due to its non-response, it had concluded: “the Government of Andhra
Pradesh declines to offer the Government of Telangana, the requested allotment in the
four Schedule 10 entities in Andhra Pradesh and the Government of Andhra Pradesh has
no need for the services of the 97 Schedule 10 institutions in Telangana.” It, therefore,
came to the final conclusion that: “Section 75, APRA Act is effectively non-operational.”

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Continuance of facilities in certain State institutions.

1. The Government of the State of Andhra Pradesh or the State of Telangana, as the
case may be, shall, in respect of the institutions specified in the Tenth Schedule to
this Act, located in that State, continue to provide facilities to the people of the other
State which shall not, in any respect, be less favourable to such people than what
were being provided to them before the appointed day, for such period and upon
such terms and conditions as may be agreed upon between the two State
Governments within a period of one year from the appointed day or, if no agreement
is reached within the said period, as may be fixed by order of the Central
Government.

2. The Central Government may, at any time within one year from the appointed day,
by notification in the Official Gazette, specify in the Tenth Schedule referred to in
subsection (1) any other institution existing on the appointed day in the States of
Andhra Pradesh and Telangana and, on the issue of such notification, such Schedule
shall be deemed to be amended by the inclusion of the said institution therein.

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Assets and liabilities of State undertakings.

1. The assets and liabilities relating to any commercial or industrial undertaking of the
existing State of Andhra Pradesh, where such undertaking or part thereof is exclusively
located in, or its operations are confined to, a local area, shall pass to the State in which
that area is included on the appointed day, irrespective of the location of its headquarters:
Provided that where the operation of such undertaking becomes inter-State by virtue of
the provisions of Part II, the assets and liabilities of––

a. the operational units of the undertaking shall be apportioned between the two
successor States on location basis; and
b. the headquarters of such undertaking shall be apportioned between the two successor
States on the basis of population ratio.

2. Upon apportionment of the assets and liabilities, such assets and liabilities shall be
transferred in physical form on mutual agreement or by making payment or adjustment
through any other mode as may be agreed to by the successor States.

High Court of Judicature at Hyderabad to be common High Court till establishment

of High Court of Andhra Pradesh.

1. On and from the appointed day,––

a. the High Court of Judicature at Hyderabad shall be the common High Court for the
State of Telangana and the State of Andhra Pradesh till a separate High Court for the
State of Andhra Pradesh is constituted under article 214 of the Constitution read with
section 31 of this Act;
b. the Judges of the High Court at Hyderabad for the existing State of Andhra Pradesh
holding office immediately before the appointed day shall become on that day the Judges
of the common High Court.
2. The expenditure in respect of salaries and allowances of the Judges of the common
High Court shall be allocated amongst the States of Andhra Pradesh and Telangana on
the basis of population ratio.

High Court of Andhra Pradesh.

1. Subject to the provisions of section 30, there shall be a separate High Court for the
State of Andhra Pradesh (hereinafter referred to as the High Court of Andhra Pradesh)
and the High Court of Judicature at Hyderabad shall become the High Court for the State
of Telangana (hereinafter referred to as the High Court at Hyderabad).
2. The principal seat of the High Court of Andhra Pradesh shall be at such place as the
President may, by notified order, appoint.
3. Notwithstanding anything contained in sub-section (2), the Judges and division
courts of the High Court of Andhra Pradesh may sit at such other place or places in the
State of Andhra Pradesh other than its principal seat as the Chief Justice may, with the
approval of the Governor of Andhra Pradesh.

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Modi Government is strengthening the state by setting up universities which can tap into the
potential of various districts in Andhra Pradesh.
1. All India Institute of Medical Science (AIIMS) at Mangalagiri
2. Indian Institute of Science Education & Research (IISER) at Tirupati
3. Indian Institute of Technology (IIT) at Tirupati
4. National Institute of Ocean Technology (ESSO-NIOT) at Thupilipallam near Nellore
5. Indian Institute of Information Technology at Sri City
6. National Institute of Technology (NIT) at Tadepalligudem
7. Indian Institute of tourism & Travel Management (IITTM) at Nellor
8. National Academy of Customs, Excise & Narcotics (NACEN) in Anantapur
9. National Institute of Design at Vijayawada
10. Indian Institute of Management (IIM) at Visakhapatnam
11. Tribal University at Vizianagaram
12. Indian Institute of Information Technology at Kurnool

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