Union Home Secretary Ajay Bhalla on Tuesday chaired a crucial meeting with senior officials of Telangana and Andhra Pradesh over unsettled matters of the Reorganisation of Andhra Pradesh Act 2014.

The meeting started here around 11 am in the Home Ministry with Telangana Chief Secretary Somesh Kumar and Andhra Pradesh Chief Secretary Sameer Sharma along with some higher officials of both states. Officials privy to the move told ANI that the agenda of the meeting was divided between the discussion on bilateral and other issues.

The agenda of the meeting has seven significant issues, like division of companies and corporations, bifurcation of state institutions, apportionment of institutions not mentioned anywhere in the Act, division of Andhra Pradesh State Finance Corporation (APSFC), division of Singareni Collieries Company Ltd (SCCL) and Andhra Pradesh Heavy Machinery Engineering Ltd (APHMEL).

Besides, the bilateral issues included a division of cash and bank balance (funds under Centrally Sponsored Schemes or Expenditure on Common Institutions or public debt pertaining to Externally Aided Projects), Cash Credit amount due to Andhra Pradesh State Civil Supplies Corporation Limited (APSCSCL) from Telangana State Civil Supplies Corporation Limited (TSCSCL) and release of Rice Subsidy for 2014-15 by M/o CA, F&PD to APSCSCL.

Other issues on the agenda of the meeting are tax incentives [Section 94 (1) and (2) of AP Reorganisation Act, 2014, development grant for seven backward districts of the state covering Rayalaseema and North Coastal Region, resource gap, removal of an anomaly in taxation matters [Section 50, 51 and 56].

The agenda also mentions Central Support for the creation of a new capital city, the establishment of educational institutions, and the establishment of rapid rail connectivity from the new capital.

The officials of both Telangana and Andhra Pradesh linked to revenue, expenditure, finance, education, agriculture and many other departments participated in the meeting.

A similar meeting was held in January this year in which Telangana had firmly expressed its stand that all matters must be resolved based on the provisions of the Reorganisation of Andhra Pradesh State Act. The Andhra Pradesh side, however, had asked for a revision in some sections of the Act, especially over properties and debts.

The Home Secretary then noted the versions of both the states. This meeting is crucial as the Home Secretary might have found out resolving issues and put them before both the states to resolve their matter with consensus.

The Home Ministry earlier this month had shared the agenda for this meeting with over a dozen issues with the Chief Secretaries of the two state governments and Secretaries of their Finance, Food, Education, Agriculture, Petroleum and Health Ministries departments besides the Railway Board chairman.