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Jupally reviews demerger of APSFC

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Telangana Industries Minister Jupally Krishna Rao on Tuesday held a meeting with the officials of Andhra Pradesh State Finance Corporation to discuss the demerger scheme of the Corporation.

APSFC Chairman T.S.Appa Rao, Special Chief Secretaryh (Finance) K Pradeep Chandra, Managing Director W.V.R.Murthy and other senior officials were present in the meeting.

During the meeting, it was discussed that adequate representation was not provided on the Board of the Corporation from Telangana side despite a letter addressed by the Government of Telangana dt. 19.03.2015 and approving demerger plan without adequate representation therefore the demerger plan approved is not acceptable to the government of Telangana.

It was reiterated that the demerger scheme of SFC comes under the 9th Schedule and it should be submitted to the Sheela Bhide committee. The chairman of the corporation informed that as per section 70 of the Act, the corporation need not appear before the Sheela Bhide committee and that the scheme would be sent to Central government for their approval after the approval of the AGM.

The Minister opined that the Corporation should have waited for the reply from the Central Government regarding appointment of Directors by the Telangana Government before approving the demerger by the Board. He advised to re-work out demerger scheme only after providing for adequate representation from Telangana on the Board of the Corporation.

Further, Jupally desired that the issue of demerger scheme is settled amicably and advised the Chairman to resolve the contentious issues and also advised the Special Chief Secretary, Finance, Government of Telangana to examine the demerger scheme approved by the Board of the Corporation.

The Chairman and Managing Director have informed that they would also consult the Government of Andhra Pradesh in this regard and inform the stand of the Government. (INN)