Dehradun, Jul 20 (IANS): A long-pending dispute between Uttar Pradesh and Uttarakhand has been resolved after mediation by the Centre, an official said on Thursday.

After meeting high-ranking officials from both sides it has been decided that Uttar Pradesh would part with Rs 2,933.13 crore as pension liabilities to the hill state, the official said.

The meeting was held under the aegis of a Joint Secretary of Ministry of Home Affairs (MHA) on July 10 in New Delhi that helped both sides moved ahead in the direction of some rapprochement, sources informed.

While there has been no settlement on other contentious issues like division of properties, this agreement between the two states was being seen as a "glimmer of hope" which could lead to further positive developments, the official told IANS.

Hundreds of pension issues were pending for the last many years and Uttarakhand was unable to pay them off as the funds had to come from Uttar Pradesh.

In 2000, Uttarakhand was carved out as a separate state from Uttar Pradesh by the then Atal Bihari Vajpayee government at the Centre.

The Auditor General of Uttarakhand had raised some objections on April 1, 2011, after which Uttar Pradesh had stopped fund transfer to its neighbouring Uttarakhand.

In the July 10 meeting, it was decided and agreed upon that the Yogi Adityanath government would transfer Rs 2,933.13 crore to the Trivendra Singh Rawat government and in future Uttar Pradesh would provide for funds of pensioners with effect April 1, 2011.