Jagan wants money, KCR has not!

The bifurcation of assets of common institutions located in Hyderabad between AP and Telangana was expected to go smoothly after Jagan became CM of AP in place of Chandrababu Naidu.

While there was political rivalry and personal grudge between KCR and Chandrababu Naidu due to which all bifurcation-related issues remain pending for the past five years, KCR and Jagan are now maintaining 'cordial relations' and both are keen on adopting 'give and take' policy to resolve bifurcation issues between AP and TS.

However, their attempts and efforts towards this goal are likely to hit 'money' hurdle.

As part of bifurcation of assets belonging to AP Transco, AP Genco in Hyderabad, it was decided to give assets worth over Rs 900 crore to AP.

However, AP CM Jagan who is facing severe cash crunch offered to leave those assets to Telangana and instead wanted Telangana to pay Rs 900 crore in return.

But the financial condition of Telangana is also not good due to financial indiscipline of KCR.

The TS government told Jagan that it cannot pay Rs 900 crore cash, instead it offered to give power worth Rs 900 crore to Andhra.

But AP government sources said Jagan is not keen on taking power from TS as AP already has adequate power and the urgent need for Jagan is money to fund his Navaratnalu, which are facing severe cash crunch.

It remains to be seen how this 'money issue' will be tackled by KCR and Jagan in the coming days. There are several such assets in Hyderabad, which are to be distributed between AP and TS.

If assets of power utilities alone can fetch Rs 900 crore to AP, one can assume how much AP would get and how much TS needs to pay in cash to take those assets from AP.

It also raises questions of from where TS could mobilise funds to pay AP to get those assets.