APHMEL shall pass to residual AP in its entirety since all its assets

Telangana |  Suryaa Desk  | Published : Tue, May 22, 2018, 12:23 PM

Telangana government has taken a strong exception to the recommendation of the committee headed by Sheela Bhide on the division of Schedule IX institutions between A.P. and TS that “AP Heavy Machinery & Engineering Ltd (APHMEL) shall pass to residual AP in its entirety since all its assets and liabilities are located in that State”. In a letter to Union Home Secretary Rajiv Gauba, Chief Secretary S.K. Joshi said the recommendation of the expert committee was not only in gross violation of the provisions of AP Reorganisation Act but also contrary to the proposal submitted by APHMEL, a subsidiary of Singareni Collieries Company Ltd. He requested the Centre to issue an interim direction suspending the recommendation as “in t is apprehended that AP may resort to unilateral taking over of the valuable assets of APHMEL as they are located near Vijayawada”.

Mr. Joshi also pointed out that the recommendation was given disregarding the objections raised by A.K. Goel, one of the members of the committee, adding that if acted upon, the recommendation would not only cause irreparable loss and damage to the State of Telangana but also to Central government since SCCL was a joint company of Telangana and the Centre.

Listing out the objections of Telangana against the expert panel's recommendation, Mr. Joshi stated that APHMEL was a subsidiary of SCCL and its apportionment was linked to the division of SCCL. At present, 51% of the equity of SCCL is with government of Telangana and 49% is with government of India. In APHMEL, the entire equity of 81.54%, whose ownership is with SCCL, has to be apportioned between Telangana and the Centre in the ratio of 51% and 49%, respectively, the Chief Secretary explained in the letter.Further, the Chief Secretary of Telangana explained that in the instant case of APHMEL, the only issue to be decided is the apportionment of ownership regarding 0.86% of shares owned by the then government of Andhra Pradesh and the expert panel's recommendation passing on the entire APHMEL, based on inappropriate application of law, is in gross violation of the provisions of the AP Reorganisation Act.

Besides, the Managing Director of APHMEL had acted rightly in proposing the bifurcation of 0.86% of shares and it was also pointed out by Mr. Goel at the committee meeting. However, in utter disregard of the proposal and the dissent note, the committee went ahead and recommended that APHMEL shall pass on to the residuary state of AP, he noted.








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