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Tuesday 6 May 2014

20 Govt Corpns will Become Two from June 2

Published: 06th May 2014 08:33 AM
Last Updated: 06th May 2014 08:33 AM 
As many as 20 corporations, including AP Beverages, Civil Supplies, Seed Distribution, Genco and Transco, will be divided into two with effect from June 2. The remaining corporations and organisations will be divided on priority basis after the Appointed Day. Governor ESL Narasimhan on Monday approved the recommendations of a high-level committee, which submitted proposals for the division of corporations.
It may be recalled that in the AP Reorganisation Act, 2014, as many 89 corporations or societies were mentioned in the ninth schedule and 107 training institutions and societies were under the 10th schedule. Some societies and training institutions serve both the successor States for some years, with the mutual agreement of both the chief ministers.
However, some corporations and societies are needed to be divided before the Appointed Day. For example, the immediate need is to divide AP Seeds Development Corporation. Immediately after the Appointed Day, the agriculture season will usher in and the priorities of both States will vary regarding distribution of seeds. Likewise, the Beverages Corporation, APSRTC,  Genco and Transco need to be divided on a priority basis.
“We have identified 20 such institutions. The Governor ratified our proposals for division of those institutions,” an official attached to division work told Express.
The Governor held a review meeting with the officials on the progress of the division work at Raj Bhavan on Monday. He accepted the proposals related to Schedule 9 and Schedule 10 and directed the officials to forward them to the Central government for issuing a notification.
May 15 Deadline:
The Governor also directed the officials to complete all the formalities of State bifurcation before May 15 and keep everything ready to be placed before the elected governments. He made it clear that May 15 was the last day and that there should not be any spillover of work.
Detailing the action taken so far under Schedule 10, chief secretary PK Mohanty said the apex committee had reviewed the draft recommendations and finalised them after detailed discussions with the departments concerned by following standard operating procedures.  Under Schedule 10, as many as 22 government departments were essentiall for both the States and hence should be divided, the chief secretary informed the Governor.
Special chief secretary Pradeep Chandra, presenting the recommendations of the apex committee under Schedule 9, said a total of 89 companies, corporations and societies were listed under Schedule 9. He said the committee had identified 20 undertakings for immediate reorganisation based on the services and revenue generation by the undertakings dealing with transport, electricity, housing and seed distribution.
Of the 20 corporations proposed for immediate reorganisation, four are statutory bodies, one a cooperative, one was a society and 14 were under the Companies Act. The committee recommended taking immediate steps for creating two separate entities to function from the Appointed Day.
Pradeep Chandra said statutory audit was conducted up to 2012-13 financial year and provisional audit for 2013-14 is being carried out for all these 20 units, besides joint adalats by the Accountant General and Finance department for reconciliation of loans and liabilities.
Principal secretary Ajay Mishra presented details of access to the higher education and new institutions proposed. Advisers to Governor Salauddin and AN Roy, and special chief secretaries SP Tucker, N Ramesh Kumar, PV Ramesh and Ramakrishna Rao were present.


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