Andhra Pradesh governor reviews bifurcation process of state's assets

Andhra Pradesh Governor ESL Narasimhan reviewed the process of division of assets and others today, before the appointed day of June 2, when the two states of Telangana and Andhra Pradesh would come into being.

"Senior officers of various departments briefed the Governor at the Raj Bhavan today, about the number of institutions functioning in the state specified in the Ninth, Tenth and Twelfth Schedules of the Companies Act. "The Governor reviewed the functioning of major companies, corporations, training institutions and energy companies," a press note from Raj Bhavan said here.

The officials apprised the Governor of the action plan being implemented by all the companies, corporations and training institutions. The Special Chief Secretary, Planning has informed the Governor that presently there are 107 major training institutions functioning under 22 important departments. 

More training institutions are being operated under the control of Panchayat Raj and Rural Development, and Higher Education and School Education Departments, the release said. 

Based on the preliminary examination, the meeting felt that 32 training institutions of various departments are needed to be continued in both the states and ensure its operation on the appointed day.Similarly, 15 universities are to be continued in the present status, it said.

Special Chief Secretary (Energy) M Sahoo presented a detailed report on the reorganization of the AP GENCO, APTRANSCO, AP CPDCL and AP SPDCL. He said that the state reorganization guidelines are applicable to power sector also. 

While reviewing the working of the Energy department, the Governor directed the officials to ensure that the farming community should not suffer with power fluctuations and crop should not get dried up with power cuts.

The Governor wanted special care be taken to ensure the interests of the small and marginal farmers to safeguard their crops, the release said.
The existing Power Purchase Agreements (PPAs) with power projects would continue with State-level Power Stations in the newly formed states as well as with Central Power Stations till their agreement period expires. 

The power under existing PPAs is divided among four distribution companies in the ratio of CPDCL: 46.06%, NPDCL: 15.87%, SPDCL: 22.27% and EPDCL: 15.80%.
The unallocated power produced by Central Generating Stations such as NTPC (15%) will be distributed between two states based on actual energy consumption in respective region in last five years. The ratio is Andhra Pradesh: 47.83% and Telangana: 52.17%, the release said.

APGENCO power producing stations would be distributed based on geographical location, Sahoo said, adding that committees were constituted with members from AP Transco, AP Genco, SR LDC, National LDC, Power Grid Corporation for smooth bifurcation and operation of SLDCs. Pradeep Chandra, Principal Secretary, Industries department has presented a detailed report on the bifurcation of 89 companies and corporations which are under the 9th schedule of Act. 

The Principal Secretary appraised the Governor of the steps being taken on the implementation of the action plan by all the companies and corporations. The Governor directed the officials to audit all the accounts of these organisations and update them as per rules in vogue. 

He also directed the Finance department to coordinate with the Accountant General's office for proper accounts and audit purpose, the release said. 

The officials have informed that employees under the Ninth, Tenth and Twelfth schedule of the Companies Act will be allocated to both the states, based on guidelines of the State Advisory Committee, it added.