Group President, Group Managing Director & Editor In Chief: Dr.Shelly Ahmed

Thursday, February 13, 2014

Telangana Bill Effect: Post-Andhra Pradesh Split On Division Of Infrastructure And Utilization Scenario?

By Uttam Nair | INNLIVE

The Telangana bill, which provides for bifurcation of Andhra Pradesh, specifically mentions how coal, oil, gas and power infrastructure and educational institutions would be divided and set up after creation of the new state.

Of the total equity of Singareni Collieries Company (SCCL), 51 per cent shall be with the government of Telangana and 49 per cent with government of India.

Existing coal linkages of SCCL will continue without any change, new linkages shall be allotted to the successor states as per the New Coal Distribution Policy of the Centre.
End use plants of the allocated coal blocks shall continue with coal from the block to be supplied in proportion to their respective capacities.

The Central government will take steps to establish institutions of national importance in the 12th and 13th Plan periods in residuary Andhra Pradesh. This would include one IIT, one NIT, one IIM, one IISER, one Central University, one Agricultural University, one IIIT.

According to the Bill, Government of India shall establish one AIIMS-like super speciality hospital-cum- teaching institutions in the residuary state of Andhra Pradesh.

The Union Government will set up a tribal university each in Seemandhra and Telangana. A horticulture university will be established in Seemandhra.

Central government will develop a new major port at Duggirajupatnam in residuary Andhra Pradesh to be completed in phases.

SAIL will examine the feasibility of establishing an integrated steel plant in Khammam district. Indian Oil Corporation Limited (IOCL) or Hindustan Petroleum Corporation Limited (HPCL) will examine the feasibility of setting up a green field crude oil refinery and petrochemical complex in successor state of Andhra Pradesh.

The Bill says the Government of India will examine the feasibility of establishing a Vizag-Chennai industrial corridor along the lines of Delhi-Mumbai industrial corridor.

The Central government will examine the feasibility of expanding the Vishakhapatnam, Vijaywada and Tirupati airports.

The National Thermal Power Corporation (NTPC) will examine the feasibility of establishing a 4,000 MW power facility in Telangana.

Indian Railways shall examine establishing a new railway zone in Seemandhra, while National Highways Authority of India (NHAI) will take necessary steps to improve road connectivity in the backward regions of Telangana.

Indian Railway will also examine the feasibility of establishing a Rail coach factory in Telangana and improve rail connectivity in the state.

The Telangana Bill says that Union Government will consider measures to establish rapid rail and road connectivity from the new capital of residuary Andhra Pradesh to Hyderabad.

Allocation of natural gas will continue to be done as per the policies and guidelines issued by the Union Government from time to time.

The royalties payable on domestic onshore production of oil and gas will accrue to the state in which such production takes place.

Units of APGENCO will be divided based on geographical location of power plants.
Existing power purchase agreements with respective DISCOMS will continue for both ongoing projects under construction.

The existing Andhra Pradesh Electricity Regulatory Commission will function as a joint regulatory body for a period not exceeding six months within which time separate State Electricity Regulatory Commissions would be formed in both states.

The Statement of Objects and Reasons of the Telangana Bill states that it is the responsibility of the Centre to promote industrialisation in the states through fiscal measures as well as through development of backward areas, in particular Rayalaseema and North Coastal regions of Andhra Pradesh by a special development package.

Referring to the power sector, the Bill says existing State Load Despatch Centre (SLDC) shall function for both residuary Andhra Pradesh and Telangana for two years within which separate SLDC will be set up for each successor state.

During this period, the existing SLDC will function under the direct administration and control of the Southern RLDC at Bangalore.

Transmission line of APTRANSCO of 132 KV and higher voltage cutting across successor states shall be deemed as Inter-State Transmission System (ISTS) lines.

The transmission lines falling within the territory of each successor state be transferred to the respective State Transmission Utilities. The maintenance of ISTS lines shall also be done by successor states in their respective jurisdiction.

The power of the central generating stations will be allotted in such ratio to be state of Telangana and residuary Andhra Pradesh based on the actual energy consumption of last five years of the relevant DISCOMS in the respective successor state.

For a period of 10 years, the successor state that has a deficit of electricity shall have the first right of refusal for the purchase of surplus power from the other successor state.

The districts of Anantpur and Kurnool, which fall within the jurisdiction of the AP Central Power Distribution Company Ltd, will now be reassigned to the AP South Power Distribution Company Ltd.
Post a Comment