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25th October 2023 (11 Topics)

The remnants of bifurcation

Context:

Telangana High Court's verdict relieves the government over power dues to Andhra Pradesh, amid longstanding disputes post-bifurcation since 2014.

The Power dispute:

  • High Court's Verdict: Telangana High Court quashes Centre's order, relieving the state of Rs.6, 750 crore power dues to Andhra Pradesh.
  • Pending Dispute Resolution: Ongoing dispute over power dues, with Andhra Pradesh seeking Rs.3, 441.78 crore in principal and ?3,315.14 crore in late payment surcharge from Telangana.
  • Telangana's Counterclaim: Telangana argues for receivables of Rs.17, 420 crore from Andhra Pradesh power utilities, emphasizing a net due of Rs.12, 532 crore.

Centre's Role and Disputed Claims

  • Union Power Minister's Statement: Union Power Minister R.K. Singh asserts Centre's directive for Andhra Pradesh to supply electricity to Telangana post-bifurcation.
  • Telangana's Response: Telangana questions Centre's selective intervention emphasizes unresolved issues since bifurcation.
  • Power Dispute's Complexity: Both states engage in claims and counterclaims, highlighting discrepancies in power supply and payments.

Pending Bifurcation Issues

  • Mediation Prospects: Possibility of the two states opting for mediation to settle power dues, a potential breakthrough in addressing pending bifurcation issues.
  • Andhra Pradesh Reorganisation Act Deadline: Act's 10-year deadline for issue resolution approaches, adding urgency to settling longstanding disputes.
  • Need for Comprehensive Settlement: Resolution of power dues could pave the way for addressing other contentious matters arising from the bifurcation.
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