Per Section 53 of the Andhra Pradesh Reorganisation Act, 2014, the assets and liabilities relating to any commercial or industrial undertaking of the existing State of Andhra Pradesh have to be apportioned between the two succucer States according to the various provisions of the AP Reorganisation Act, 2014. Per the Section 68 of the Andhra Pradesh Reorganisation Act, 2014, (1) the companiies and Corporation specified in the Ninth Schedule constituted for exising State of Andhra Pradesh shall on and from the appointed day, continue to functon in those areas in respect of which they were functioning immmediately before that day, subject to the provisions of this section, (2) The assets, reights and liabilities of the companies and corporations referred to in sub-section (1) shall be apportined between the successor States in the manner provided in Section 53. The Ninth Schedule list may get amended from time to time.
2. Each Schedule IX entity will prepare a draft demerger plan for the apportionment of the assets and liabilities of the entity by way of demerger plans. In order to ensure that the demerger plans have been prepared correctly and in order to ensure that any equitable apportionment of assets and liabilities have been made per the statutory requirements of the AP Reorganisation Act, 2014, the following Expert Committee has been constituted;
1.Smt.Sheela Bhide, IAS (Retd.) … Member-Chairman
2.Sri A.K.Goel, IAS (Retd) … Member
3.Sri K.Narasimha Murthy, Finance Expert .. Member
3. Terms of Reference of the Expert Committee:
a) To review the demerger proposals prepared by all the Government Companies, Corporations and Entities notified under Schedule 9 of the AP Reorganiation Act, 2014 (The Act).
b) To hold discussions with all the oncerned stake holders in connection with the demerger proposals, if required.
c) To suggest any modifications required in the demerger proposals submitted, in order to ensure equity among all stake holders, ensuring adherence to the provisions of Act.
d) To approve the demerger proposals before being pursued further with due legal process under respective Laws and Government Business Rules.
e) The Expert Committee may utilise the services of any other subject matter experts to assist them.
4. Both the State Governments are advised to present their views before the Committee in case of any issues arising out of the demerger proposals.
5. The Committee shall start function from 2nd June 2014. The Industries and Commerce Department of the residual State of Andhra Pradesh shall provide the necessary secretarial, logistic and administrative support, since State Reorganisation
matters vest with the residual State of Andhra Pradesh.
6. The Expert Committee shall meet as frequent as possible to complete the demerger process as early as possible. The term of the office of the Expert Committee shall initially be for a period of 6 months from the date of issue of this
order and shall be extended further if required.
7. All the Departments in the Secretariat shall ensure that the demerger proposals received from various Government Companies and Corporations are examined by the Expert Committee and their recommendations are obtained before
issue of final orders of demerger as per the Andhra Pradesh Government Business Rules.
8. The General Administration Department (SR Cell), Government of Andhra Pradesh shall issue separate orders regarding the honorarium, conveyance, and other expenses as well as allotment of office space and secretarial assitance to the
9. These orders are issued with the concurrence of the Finance Department vide their U.O.No.1928/PFS/2014, dt.26.05.2014.
Andhra Pradesh Reorganisation Act 2014 – Government Companies, Corporations and Entities covered in the IX Scheduled of APRA 2014 constituted in the existing State of Andhra Pradesh – Bifurcation of the Government Companies and Corporations as per the provisions of the Andhra Pradesh Reorganisation Act, 2014 – Constitution of Expert Committee for approval of the demerger proposals of each Schedule IX Government Companies/Corporations/Entity – Orders – Issued.
INDUSTRIES & COMMERCE (SR) DEPARTMENT
G.O.Rt. No: 223 Dated:30.05.2014