The process of bifurcation of the industries and corporations owned by the Government of Andhra Pradesh has gained momentum.
The deadline for completion of the process has been fixed on May 15 as the States of Telangana and Andhra Pradesh would come into existence on June 2, a senior official of the Department of Industries told Business Line .
There are 44 government-owned companies and corporations in the State, including Andhra Pradesh Mineral Development Corporation, A P Industrial Infrastructure Corporation, AP Industrial Development Corporation and AP Beverages Corporation.
In the case of power utilities such as APGenco and Transco, status quo would be maintained for one year and distribution of power between the two States will be on the basis of power consumption for the last five years.
As of now, details of fixed and mobile assets, loans and advances and bank account details have been compiled for most of the entities except the major ones, the official said.
However, officials are expecting the process to be delayed in major entities such as APIIC and APMDC due to large volume of files and legal cases pending with private parties.
Every file has to be duplicated and entire new organisation structure with separate finances should be put in place. The department has set periodic deadlines for each of these processes.
The boards of some corporations will have to be reconstituted so as to give adequate representation to the successor States.
The finance department including treasury and pay and accounts are also being divided so as to enable salary payments and maintenance of public accounts from June 2 in the two States with two separate accounts in the Reserve Bank India.
Admin hub Meanwhile, stage is set for the bifurcation of the existing State Secretariat to accommodate two secretariats.
A block-wise division is almost finalised and the work is expected to be commenced after a key meeting to be chaired by Governor ESL Narasimhan some time next week.