Both Andhra Pradesh and Telangana have made their own interpretation of the provisions under the which act?

Andhra Pradesh Reorganisation Act 2014.

The Stalemate between Telangana and Andhra Pradesh

Table of Contents

Commonly known as Telangana Act, the Andhra Pradesh Reorganisation Act 2014 bifurcated the state of Andhra Pradesh into Telangana and the residuary Andhra Pradesh state.
The Act defined the boundaries of the two states, determined the division of assets and liabilities, and laid out the status of Hyderabad as the permanent capital of the new Telangana state and the temporary capital of the Andhra Pradesh state.

The Parliament of India has the sole power to create new states and union territories in India based on the procedure laid down in Article 3 of the Constitution.
Parliament has powers to create new States in a number of ways, namely by (i) separating the territory from any State, (ii) uniting two or more States, (iii) uniting parts of States and (iv) uniting any territory to a part of any State.
Procedure: The bill calling for the formation of new States can only be introduced in either House of Parliament based on the recommendation of the President.
The President must refer such a bill to the concerned State Legislature for expressing its views. However, the Parliament will not be bound by the views of the state legislature.

The committee headed by Sheela Bhide had made recommendations with respect to the division of 89 out of the 91 Schedule IX institutions.
The committee’s recommendations on the division of assets that are not a part of the headquarters assets attracted criticism from the Telangana government.
- The divisions of assets of RTC headquarters and the Deccan Infrastructure and Landholdings Limited (DIL) have become the key bone of contention between the two States.

There are 91 institutions under Schedule IX and 142 institutions under Schedule X of the AP Reorganisation Act that have to be divided.
There are 12 other institutions not mentioned in the Act, which have been a bone of contention.
Value of assets: There are a total of 245 institutions with a total fixed asset value of Rs 1.42 lakh crore. Headquarters assets under Schedule IX institutions are valued at Rs 24,018.53 crore.
- Institutions under Schedule X are valued at Rs 34,642.77 crore. The other 12 institutions make up the remaining 1,759 crores.

AP Government

The AP Government wants implementation of the recommendations made by the expert committee headed by retired bureaucrat Sheela Bhide for bifurcation of 89 out of the 91 Schedule IX institutions.
It has criticized the Telangana government for selectively accepting the recommendations leaving others which has resulted in delays in division of assets and liabilities.

Telangana Government

The Telangana government has criticized the recommendations on division of headquarter assets in Section 53 of the Reorganisation Act. The recommendations violate AP Reorganisation Act.
Telangana is ready to divide the assets located outside united state between the new states on the basis of population as per the provisions of the Act.

The Home Ministry

The Ministry says that commercial undertakings of the united State exclusively located in, or its operations are confined in one local area, it shall be apportioned on the basis of location as per sub-section (1) of Section 53 of the Reorganisation Act.
Meetings conducted by dispute resolution sub-committee headed by the Home Ministry’s joint secretary with the two States could not break the impasse.
There is a provision in the act that empowers the Union Government to intervene as and when needed.