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Bifurcation of Andhra Pradesh and the Reorganisation Act 2014 · Chapter 2

Provisions of the Andhra Pradesh Reorganisation Act, 2014

What to remember

  • The Act created the state of Telangana from the existing Andhra Pradesh from the appointed day, 2 June 2014. It made Hyderabad the common capital for a period not exceeding ten years, and it made the Governor responsible for law and order in Hyderabad.
  • It is divided into Parts and Schedules. The Ninth and Tenth Schedules list state institutions and higher-education institutions whose assets and liabilities are to be divided. The Thirteenth Schedule lists development measures for the residuary Andhra Pradesh.
  • Special help for Andhra Pradesh comes from the Act's special provisions on incentives, backward regions and infrastructure, and from separate commitments made in Parliament. The Act does not itself use the term "special category status".

1. General structure

The Act is in Parts, each dealing with a topic, with Schedules at the end. The main subjects of the Parts are:

  • the formation of Telangana and the territory of both states;
  • representation in Parliament and in the State Legislatures;
  • the High Court, the Governor and the Advocate General;
  • Hyderabad as the common capital;
  • the new capital for Andhra Pradesh;
  • division of assets, liabilities and employees;
  • water resources and river boards;
  • financial and tax provisions;
  • special provisions on development and on public safety;
  • legal and miscellaneous provisions.

Key point: the Act was made under Article 3 and Article 4 of the Constitution. These Articles state that such a law is not a constitutional amendment under Article 368, but it may amend the First and Fourth Schedules.

2. Territory and representation

  • Telangana comprises the territory of the Telangana region of the earlier state. The remaining part is the "residuary State of Andhra Pradesh".
  • The Act fixed the number of seats for the two states in the Lok Sabha, Rajya Sabha and the Legislative Assemblies. The Lok Sabha seats were divided as 25 for Andhra Pradesh and 17 for Telangana.
  • The Act also provided for Legislative Councils in both states, to be continued.
  • Both states share a common High Court at Hyderabad until a separate High Court is created for Andhra Pradesh. A separate High Court for Andhra Pradesh was later set up.
  • One Governor served both states for a period, with a Governor's special responsibility for Hyderabad.

3. Hyderabad as common capital: the key sections

  • Section 5: Hyderabad is the common capital of both states for a period not exceeding ten years from the appointed day. After that, Hyderabad is the capital of Telangana only, and Andhra Pradesh gets a new capital.
  • Section 6: the Central Government is to set up an expert committee to study alternatives for the capital of Andhra Pradesh. This led to the Sivaramakrishnan Committee.
  • Section 8: the Governor has special responsibility for the safety and security of residents in the common capital. The Governor acts in his discretion for law and order, internal security, and for the security of government property and installations. He is helped by two advisors appointed by the Centre. Do not confuse it with the common-capital rule itself.
  • The Greater Hyderabad Municipal Corporation area is treated as the common-capital area for this purpose.

4. Ninth and Tenth Schedules

These Schedules list institutions whose assets and liabilities are to be shared.

ScheduleCoversHow assets are shared
Ninth ScheduleState public sector companies and corporationsBy location for immovable assets; movable assets mostly in proportion to population
Tenth ScheduleInstitutions of higher education, research and trainingTo be shared between the two states by the Act's rules and through consultation

Principles used for division of assets:

  • Immovable assets go to the state in which they are located.
  • Movable assets are divided, often in proportion to the population ratio.
  • Cash balances and investments are shared in the same population ratio.
  • Debts follow the assets or are shared in the population ratio.
  • A Central Government expert committee advised on disputes.

Division of institutions continued after 2014, and a number of disputes were taken to courts. The Centre appointed committees to help in sorting out disputed items. Check the latest official release for the status of each item.

5. Employees and services

The Act provides for allocation of government employees between the two states, with preference to local cadre. Central government made guidelines and an advisory committee. Officers of All India Services were allocated by the Centre.

6. Water resources

  • Rivers: Godavari and Krishna are the main rivers shared by both states.
  • The Act provided for the Godavari River Management Board and the Krishna River Management Board to oversee the projects and water sharing. An Apex Council with central ministers and chief ministers was meant to supervise.
  • Existing allocations by the earlier tribunals continue.
  • The Act declared Polavaram a national project. The Centre is to bear the cost of the irrigation component. Parts of the project area in Telangana were added to Andhra Pradesh by an Ordinance in 2014.

7. Special assistance and development provisions

  • Section 94 type provisions: the Centre is to take steps for fiscal support, infrastructure, and incentives (such as tax incentives) to promote industrial and economic growth in the residuary state, with special attention to the backward regions of Rayalaseema and north coastal Andhra.
  • Thirteenth Schedule: it lists institutions and projects for the residuary Andhra Pradesh, such as institutions of national importance, a central university, a tribal university, a railway zone, a port, and infrastructure. Items were to be set up in stages. Check the latest official release for the status of each.
  • Special category status: the term refers to the older category for certain states with extra central help, for example hill or border states. In February 2014, the Prime Minister announced in Parliament that Andhra Pradesh would get special category status for a stated period. It is not a section of the Act. Later, after the Fourteenth Finance Commission increased the states' share of central taxes and it did not recommend such a category, the Centre offered a special assistance package. The matter remains a political issue.
  • Revenue gap: the Act recognised the revenue gap in the residuary state and asked for a plan to meet it.

8. Constitutional provisions for the two states

  • Article 371-D and 371-E: the special provisions of Article 371-D for equal opportunity in jobs and education were extended to both states. Article 371-E allows a Central University in Andhra Pradesh.
  • Articles 3 and 4: law forming states.
  • The Act amended the First Schedule (list of states) and Fourth Schedule (Rajya Sabha seats) of the Constitution, as allowed by Article 4.
  • The Act was passed by simple majority, as it is not a constitutional amendment.
ProvisionSubject
Section 5Common capital for up to ten years
Section 6Expert committee for new capital
Section 8Governor's responsibility for law and order in Hyderabad
Ninth ScheduleState PSUs and corporations
Tenth ScheduleHigher-education and research institutions
Thirteenth ScheduleDevelopment measures for residuary Andhra Pradesh

Exam traps

  • Section 5 gives the common capital; Section 8 gives the Governor's special responsibility.
  • The Ninth Schedule of the Reorganisation Act is not the Ninth Schedule of the Constitution.
  • Special category status is not written as such in the Act; the Act has incentive and backward-region provisions.
  • The Act was passed by simple majority; it was not a constitutional amendment.
  • A State Legislature's views on the Bill are not binding on Parliament.
  • Hyderabad is common capital for up to ten years, not a fixed ten years; it ended on 2 June 2024.
  • The Fourteenth Finance Commission did not recommend a special category status.
  • Polavaram is a national project on the Godavari; do not confuse it with Pattiseema.

One-liners

  • 1. The Act was made under Articles 3 and 4.
  • 2. The appointed day was 2 June 2014.
  • 3. Hyderabad is the common capital for up to ten years.
  • 4. Section 6 provided for an expert committee on the new capital.
  • 5. Section 8 gives the Governor special responsibility for Hyderabad's security.
  • 6. The Ninth Schedule lists state companies and corporations.
  • 7. The Tenth Schedule lists higher education and research institutions.
  • 8. The Thirteenth Schedule lists development measures for Andhra Pradesh.
  • 9. The Lok Sabha seat split was 25 for Andhra Pradesh and 17 for Telangana.
  • 10. Polavaram was declared a national project.
  • 11. The Act provides for Godavari and Krishna river management boards.
  • 12. Article 371-D covers equal opportunity in jobs and education.

Practice questions

  1. The Andhra Pradesh Reorganisation Act, 2014 was made under which Articles?

    1. Articles 3 and 4
    2. Articles 356 and 360
    3. Articles 1 and 2
    4. Articles 368 and 370
    Answer

    A. Articles 3 and 4

    Such a law is not a constitutional amendment.

  2. The appointed day under the Act was:

    1. 2 June 2014
    2. 1 November 2014
    3. 18 February 2014
    4. 1 March 2014
    Answer

    A. 2 June 2014

    Telangana came into being on that day.

  3. Hyderabad is the common capital for a period:

    1. Without any time limit
    2. Of exactly five years
    3. Of exactly twenty years
    4. Not exceeding ten years
    Answer

    D. Not exceeding ten years

    The limit ran from the appointed day.

  4. Which Section made Hyderabad the common capital?

    1. Section 6
    2. Section 5
    3. Section 94
    4. Section 8
    Answer

    B. Section 5

    Section 5 gives the ten-year limit.

  5. Which Section provides for an expert committee on the capital of the successor state?

    1. Section 8
    2. Section 5
    3. Section 6
    4. Section 90
    Answer

    C. Section 6

    This led to the Sivaramakrishnan Committee.

  6. Which Section gives the Governor special responsibility for security in the common capital?

    1. Section 8
    2. Section 5
    3. Section 46
    4. Section 6
    Answer

    A. Section 8

    The Governor acts in his discretion for law and order.

  7. The Ninth Schedule of the Reorganisation Act lists:

    1. Higher education institutions
    2. State public sector companies and corporations
    3. Central laws
    4. Fundamental rights
    Answer

    B. State public sector companies and corporations

    Their assets and liabilities are to be divided.

  8. The Tenth Schedule of the Reorganisation Act lists:

    1. Rivers of the two states
    2. State public sector companies
    3. Lok Sabha seats
    4. Institutions of higher education, research and training
    Answer

    D. Institutions of higher education, research and training

    It covers institutions to be shared between the states.

  9. The Thirteenth Schedule of the Act lists:

    1. Division of rivers
    2. Assets of Telangana
    3. Development measures for residuary Andhra Pradesh
    4. Seats in the Rajya Sabha
    Answer

    C. Development measures for residuary Andhra Pradesh

    It includes institutions of national importance and infrastructure.

  10. How many Lok Sabha seats were allotted to residuary Andhra Pradesh?

    1. 17
    2. 21
    3. 25
    4. 30
    Answer

    C. 25

    Telangana got 17.

  11. How many Lok Sabha seats were allotted to Telangana?

    1. 17
    2. 13
    3. 21
    4. 25
    Answer

    A. 17

    Andhra Pradesh got 25.

  12. The Act provides for river management boards for the:

    1. Penna and Palar
    2. Narmada and Tapi
    3. Cauvery and Vaigai
    4. Godavari and Krishna
    Answer

    D. Godavari and Krishna

    They oversee projects and water sharing.

  13. Which project did the Act declare a national project?

    1. Somasila
    2. Polavaram
    3. Srisailam
    4. Nagarjuna Sagar
    Answer

    B. Polavaram

    It is on the Godavari.

  14. Article 371-E allows the setting up of:

    1. A separate High Court at Hyderabad
    2. A Central University in Andhra Pradesh
    3. A tribal council in Telangana
    4. A new Public Service Commission
    Answer

    B. A Central University in Andhra Pradesh

    It was added with Article 371-D in 1973.

  15. Article 371-D deals with:

    1. Special powers over rivers
    2. Reservation in Parliament
    3. Equal opportunity in public employment and education across regions
    4. Control of ports
    Answer

    C. Equal opportunity in public employment and education across regions

    It was meant to ease regional complaints.

  16. The Reorganisation Act was passed by:

    1. A special majority and half of the states
    2. A referendum
    3. A two-thirds majority of the state alone
    4. A simple majority in Parliament
    Answer

    D. A simple majority in Parliament

    It is not a constitutional amendment.

  17. A law under Articles 3 and 4 may amend the:

    1. Seventh Schedule only
    2. Preamble
    3. Fundamental Duties
    4. First and Fourth Schedules of the Constitution
    Answer

    D. First and Fourth Schedules of the Constitution

    These list states and Rajya Sabha seats.

  18. The term 'special category status' appears:

    1. Not in the text of the Act as such
    2. In Section 5
    3. In the Ninth Schedule
    4. In every Schedule
    Answer

    A. Not in the text of the Act as such

    The Act has incentive and backward-region provisions instead.

  19. After the Fourteenth Finance Commission, the Centre offered Andhra Pradesh:

    1. A separate Finance Commission
    2. Exemption from all taxes
    3. A special assistance package
    4. Control over Hyderabad
    Answer

    C. A special assistance package

    The question of special category status remained a political issue.

  20. Under the Act, immovable assets of the state generally go to:

    1. The state in which they are located
    2. The Centre
    3. Both states equally in all cases
    4. The state with more Lok Sabha seats
    Answer

    A. The state in which they are located

    Location decides immovable assets.

  21. Movable assets and cash balances are mostly divided:

    1. Equally
    2. In the ratio of population
    3. By location only
    4. By area
    Answer

    B. In the ratio of population

    This is the common rule in such divisions.

  22. In Hyderabad, the Governor is helped in his special responsibility by:

    1. The Chief Ministers of both states
    2. The Chief Justice of the High Court
    3. The Speaker of the Assembly
    4. Two advisors appointed by the Centre
    Answer

    D. Two advisors appointed by the Centre

    The advisors are appointed by the Central Government.

  23. Until a separate court was created, the two states shared a:

    1. Common High Court at Hyderabad
    2. Supreme Court bench in Vijayawada
    3. Court at New Delhi only
    4. Court at Amaravati
    Answer

    A. Common High Court at Hyderabad

    A separate High Court for Andhra Pradesh was set up later.

  24. Who allocates officers of the All India Services between the two states?

    1. The Chief Ministers jointly
    2. The Central Government
    3. The High Court
    4. The Governor alone
    Answer

    B. The Central Government

    Guidelines were made by the Centre.

  25. The Act gives special attention to the backward regions of:

    1. Krishna delta and Godavari delta
    2. Hyderabad and Warangal
    3. Rayalaseema and north coastal Andhra
    4. Guntur and Vijayawada
    Answer

    C. Rayalaseema and north coastal Andhra

    These are the less developed areas of the residuary state.

  26. Incentives for industrial growth in residuary Andhra Pradesh are covered by provisions on:

    1. Handing over industry to Telangana
    2. Closing ports
    3. Banning private industry
    4. Fiscal support, infrastructure and tax incentives
    Answer

    D. Fiscal support, infrastructure and tax incentives

    They are in the special provisions of the Act.

  27. The part of Andhra Pradesh left after the creation of Telangana is called:

    1. Residuary State of Andhra Pradesh
    2. Andhra Kshetra
    3. Rayalaseema State
    4. Successor of Telangana
    Answer

    A. Residuary State of Andhra Pradesh

    The Act uses this term.

  28. The Apex Council in the Act is meant to:

    1. Collect GST
    2. Supervise water-sharing arrangements
    3. Select judges
    4. Elect the Governor
    Answer

    B. Supervise water-sharing arrangements

    It consists of central ministers and the Chief Ministers.

  29. The Ninth Schedule of the Reorganisation Act is different from the Constitution's Ninth Schedule, which deals with:

    1. Seats in the Lok Sabha
    2. Higher education institutions
    3. Laws protected from certain court challenges
    4. State companies
    Answer

    C. Laws protected from certain court challenges

    Do not mix the two Schedules.

  30. Consider the statements: 1. Section 5 gave the Governor special responsibility for law and order. 2. Section 8 provided for the expert committee on the new capital. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    D. Neither 1 nor 2

    Section 5 is the common capital, Section 6 the expert committee, and Section 8 the Governor's role. Both are wrong.

  31. Consider the statements: 1. The Act was made under Article 3. 2. The Act is a constitutional amendment under Article 368. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Article 4 says such a law is not an Article 368 amendment.

  32. Consider the statements: 1. The Ninth Schedule of the Act lists state public sector companies. 2. The Ninth Schedule of the Act lists higher education institutions. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Higher education institutions are in the Tenth Schedule.

  33. Consider the statements: 1. The Act states the words 'special category status' as a legal entitlement for Andhra Pradesh. 2. The Act has incentive and backward-region provisions for Andhra Pradesh. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    Only statement 2 is correct.

  34. Consider the statements: 1. Polavaram was declared a national project under the Act. 2. The Act provides for river management boards for the Godavari and the Krishna. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both statements are correct.

  35. Consider the statements: 1. Immovable assets generally go to the state where they are located. 2. Immovable assets are always divided equally. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Location is the basis. Only statement 1 is correct.

  36. Consider the statements: 1. Hyderabad stays common capital for exactly ten years in all cases. 2. Hyderabad stays common capital permanently. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    D. Neither 1 nor 2

    The limit is a period not exceeding ten years. Both are wrong.

  37. Consider the statements: 1. Andhra Pradesh received 17 Lok Sabha seats. 2. Telangana received 17 Lok Sabha seats. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    Andhra Pradesh got 25 and Telangana got 17.

  38. Which of the following pairs is correctly matched?

    1. Section 5 - Division of rivers
    2. Section 6 - Governor's role in Hyderabad
    3. Section 5 - Common capital for up to ten years
    4. Section 8 - Expert committee
    Answer

    C. Section 5 - Common capital for up to ten years

    Section 6 is the expert committee and Section 8 is the Governor's role.

  39. In the common capital, the Governor's special responsibility is exercised:

    1. On the advice of the Chief Minister of Andhra Pradesh
    2. On the advice of the Speaker
    3. Only after a Court order
    4. In his discretion
    Answer

    D. In his discretion

    This applies to law and order and internal security.

  40. The Act recognised that residuary Andhra Pradesh would have:

    1. No need for new institutions
    2. A revenue gap needing central support
    3. No water disputes
    4. A permanent revenue surplus
    Answer

    B. A revenue gap needing central support

    Support was promised through special provisions.

  41. Which two states share the rivers Godavari and Krishna in the Act's river management arrangement?

    1. Gujarat and Rajasthan
    2. Tamil Nadu and Kerala
    3. Andhra Pradesh and Telangana
    4. Odisha and Bihar
    Answer

    C. Andhra Pradesh and Telangana

    The river boards cover projects in both states.

  42. The Act ended the status of Hyderabad as the capital of residuary Andhra Pradesh after:

    1. The common-capital period
    2. The next general election
    3. The first Budget
    4. The next Census
    Answer

    A. The common-capital period

    After the period, Hyderabad is the capital of Telangana only.

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