Andhra Pradesh government has decided to leave few loss incurring institutions listed in the 10th Schedule of the State Reorganization Act to the Telangana government along with their assets, liabilities and staff. There are 107 institutions in the 10th schedule of the State Reorganization Act, AP government has decided to identify the institutions that are not of any relevance to the the state.
These institutions are running in losses and will be financial burden to the truncated state if inherited. The state government had constituted a committee comprising of C.S. Rao, AP government advisor (finance), C. Kutumba Rao, vice-chairman of the state planning board, K. Narasimha Murthy, finance expert, and N. Yogeswara Sastry, director, planning department to decide up on the loss making institutions.
On the other side, Telangana government is completely arguing that all the institutions that are in Hyderabad belong to them and AP can only claim rights of service from them but not the assets. It is said that the center is likely to take another six months to decide up on the division of all the institutions listed in the 10th Schedule of the State Reorganization Act
