Andhra Pradesh wants key changes to state reorganisation act

HYDERABAD: Andhra Pradesh is preparing to approach the Centre seeking amendments to the state reorganisation Act as some of the provisions on corporate tax arrears and tax deferments may be detrimental to its interests.

But the move could lead to more disputes between the two Telugu-speaking states, Telangana and Andhra Pradesh, that are already at loggerheads over several contentious issues pertaining to sharing of funds, water and power.

The move comes close on the heels of a statement by Union urban development minister M Venkaiah Naidu that the Centre may take up amendments to the Act in the ensuing budget session of parliament.

M Venkaiah Naidu told reporters in Hyderabad on Sunday that the Centre would talk to the governments of Andhra Pradesh and Telangana to decide on amendments.

A senior Andhra Pradesh bureaucrat said the government, after close scrutiny of sections of the AP State Reorganisation Act, had found many sections to be against its interests.

“We have submitted a detailed report to the Andhra Pradesh government highlighting the need to amend at least certain key sections of the Act that could critically affect its finances,“ he told ET, seeking anonymity.“There are some sections like 50, 51 and 56 pertaining to sharing tax arrears and tax deferments from corporates that need to be amended on a war footing given their huge financial implications,“ he said.