Union Cabinet clears Telangana with 10 districts; special status for both states

New Delhi: The Union Cabinet Thrusday night gave the go-ahead for the creation of a 10-district Telangana and outlined the blueprint for carving out the country's 29th state from the current Andhra Pradesh.

Dropping a controversial move to add two districts of Rayalaseema to Telangana, which was opposed by various stakeholders, the cabinet, presided over by Prime Minister Manmohan Singh, approved a draft reorganisation bill based on recommendations of Group of Ministers (GoM).

YSR Cong calls for bandh in Seemandhra

The decision of the cabinet came after the Congress Core Group met in the morning and cleared the CWC resolution of Telangana with 10 districts.

The bill will be sent to the President on Friday with a request to make a reference to Andhra Pradesh assembly to obtain its views, Home Minister Sushilkumar Shinde told reporters after nearly a three-hour long cabinet meeting.

Union Home Minister Sushilkumar Shinde with Home Secretary Anil Goswami addressing the media outside PM House after a Cabinet meeting on Telangana, in New Delhi on Thursday - PTI

Announcing the decision, Shinde said that the Cabinet has decided to give special status for both states (Telangana and residuary AP) under Article 371-D of Constitution for equitable opportunities.

"The common capital will be Hyderabad for a period not exceeding 10 years. We want the Bill to be tabled in winter session of Parliament," Shinde added.

Shinde said government wants to bring the bill in the winter session of parliament but it depends on when the President returns the bill after signing it.

DC poll: Why was Rayala Telangana plan scrapped?

Union Finance Minister P. Chidambaram made it clear earlier on the day that the Union Cabinet has already approved Telangana and there were no plans to form Rayala Telangana.

Speaking media persons after attending the Congress Core Committee meeting here, Chidambaram described the reports in media about Rayala Telangana as false and baseless. “Where is Rayala Telangana and who said it? What we will do if the media writes stories without checking facts?" he asked.

Telangana bandh complete, violence in OU

Chidambaram said that the Centre has already cleared the proposal for formation of Telangana State with 10 districts and there were no changes in the plan.

The highlights of the bill are:

• Telangana will comprise 10 districts and the rest of Andhra Pradesh comprises 13 districts.
• Hyderabad will remain the common capital for both the states for a period not exceeding 10 years.
• The Governor of Telangana will have a special responsibility for security of life, liberty and property of all those who reside in the common capital area.
• The Governor may be assisted by two advisors to be appointed by the Government of India.
• The government of India will extend financial and other support to the creation of a new capital for the successor state of Andhra Pradesh to be idendified by an expert committee.
• Institutional mechanism with full involvement and participation of government of India will be put in place to manage water resources and projects on Krishna and Godavari rivers in an amicable and equitable manner.
• Polavaram will be declared as a national project and will be executed by the union government following all environmental and R&R norms.
• Detailed provisions have been made in the bill on matters relating to coal, power, oil and gas, division of assets and liabilities and allocation of government employees.
• The government of India will assist the two states in augumenting their police forces for maintaining public order.
• Article 371 D will continue for the both states to ensure equitable opportunities for education and public employment.
• Existing admission quotas in higher technical and medical institutions will continue for a period not exceding five years.
• Special economic package for backward regions of both the states.
• There will be two High Courts. Hyderabad High Court will be part of Telangana and it will be the High Court for both the states till a new High Court is set up in Seemandhra region.
• Both the states will have a joint Public Service Commission till each one has its own Commission.
• Singareni coal fields will go to government of Telangana.

Shinde said government will take special measures for the economic development for both the successor states. This include expansion of physical and social infrastrure and establishment of national institutions in the successor state of Andhra Pradesh.

"We are going to set up a large number of national-level institutions in Seemandhra - IIT, IIM, AIIMS - those in Hyderabad will be set up in Seemandhra too," a Union Minister said.

Thursday's decision by the Union Cabinet followed detailed work done by the Group of Ministers headed by Shinde for 53 days, after holding 28 formal and informal meetings and after going into 18,000 suggestions received on email and interactions with all political parties of Andhra Pradesh.

Next: Cabinet nod puts to rest speculation on Telangana composition

Cabinet nod puts to rest speculation on Telangana composition

Hyderabad: By giving its nod to the creation of Telangana with 10 districts including Hyderabad, the Union Cabinet on Thursnight put to rest all speculation about the composition of the new state, which otherwise caused some unrest among both the separatists and the integrationists in Andhra Pradesh in the last few days.

For the past few days, there had been talk that the Group of Ministers, constituted to look into the state bifurcation issue, was about to recommend formation of Rayala Telangana state by adding two districts of Rayalaseema region (Anantapuram and Kurnool) to the 10 districts of Telangana.

Barring a couple of Congress leaders from Anantapuram district, everyone stoutly opposed the Rayala Telangana idea.

The Telangana protagonists here literally jumped in joy as Union Home Minister Sushilkumar Shinde announced the Cabinet's decision to carve out a separate state with 10 districts in tune with the resolution adopted by the Congress' Working Committee (CWC) on July 30.

At the same time, the decision left the votaries of united AP in certain disillusionment as the Centre ignored the majority opinion and decided to split the state.

The Centre did not offer any consolation to the integrationists by deciding not to grant any special status (read Union Territory) to Hyderabad except stating that the Greater Hyderabad Municipal Corporation area will remain the 'common capital region' for a period 'not exceeding ten years'.

But the main question on everyone's mind now is whether the AP State Re-organisation Bill-2013 will get Parliament’s approval in the ongoing winter session or, if not, when.

Chief Minister N. Kiran Kumar Reddy, who is leading the united AP protagonists, is said to be drawing up plans to see that the proposed Bill does not go to Parliament in the winter session. In such case, the Centre has to either convene a special session of Parliament in January to get the Bill through or wait for the Budget session.

Congress leaders from Seemaandhra feel that the party would be caught on the backfoot if it faced a rout in the Assembly elections in four states, including Delhi. In the event, they feel the State Re-organisation Bill could be put on the backburner.

More drama is expected to unfold, particularly in the Congress' Seemaandhra camp in the next few days as the state Assembly sits for its winter session from December 12 during which the bifurcation issue will be the main agenda.