Bifurcation of Andhra Pradesh

What to remember

• The Andhra Pradesh Reorganisation Act, 2014 split the State; the new State of Telangana came into being on the appointed day, 2 June 2014, and Hyderabad became a common capital for up to ten years.
• The Act promised help to residual AP: a new capital, a national project status for Polavaram, special development for backward regions, central institutions and tax incentives.
• Main implications are the loss of Hyderabad's revenue and institutions, the need to build a capital, division of assets, debts and employees, and sharing of river waters.

1. Background: how the two regions came together

• Andhra State was formed on 1 October 1953 (capital Kurnool) after the death of Potti Sriramulu following his fast for a separate Telugu State. It was the first State formed on a linguistic basis.
• The States Reorganisation Commission (Fazl Ali Commission, 1953-55) recommended a separate Telangana State at first with a review later, but Parliament formed Andhra Pradesh on 1 November 1956 by merging Telangana with Andhra State, under the States Reorganisation Act, 1956.
• A Gentlemen's Agreement (1956) gave safeguards to Telangana in jobs, education, funds and administration. Earlier, the Sri Bagh Pact (1937) had dealt with sharing of benefits between coastal Andhra and Rayalaseema.
• Mulki rules reserved jobs for local residents in Telangana.
• 1969 agitation: a strong Telangana movement over alleged violation of safeguards. The Six-Point Formula (1973) and the Presidential Order of 1975 set rules for local reservation in jobs and education.
• Article 371-D (added by the 32nd Amendment Act, 1973, in force from 1 July 1974) gives special provisions for equal opportunities in public employment and education across regions of the State.
• A rival Samaikyandhra (united State) movement existed against division.

2. Road to the 2014 Act

• 2009: announcement by the Central Government on starting the Telangana process; the Justice Srikrishna Committee (2010) studied options and gave its report in 2010.
• 2013: the Congress Working Committee and the Union Cabinet approved a separate State; a Group of Ministers examined the issues.
• The Bill was sent to the AP Legislative Assembly for its views (under Article 3, the President refers the Bill; the State's view is not binding).
• Parliament passed the Bill in February 2014 (Lok Sabha and Rajya Sabha). The President gave assent on 1 March 2014. The Act came into force on 2 June 2014.
• Article 3 gives Parliament the power to form new States and alter the boundaries or names of existing States by a simple law.

3. Key provisions of the AP Reorganisation Act, 2014

• Hyderabad is the common capital of both States for a period not exceeding ten years, after which it will be the capital of Telangana alone (Section 5). AP must establish a new capital.
• Governor: a common Governor for both States; he has special responsibility for safety and security of all citizens in Hyderabad (Section 8).
• Legislature: seats were divided; the Telangana State got the seats from its areas.
• Polavaram: the Act declares the Polavaram irrigation project a national project, with the Central Government carrying the cost and implementation. Some villages in the submergence area were transferred to AP.
• Special development: a package for the backward regions of Rayalaseema and the north coastal region, and the promise of a special status was announced in Parliament in 2014. Later, the Union Government explained that the Finance Commission had changed the system of grants, and a special package was given instead.
• Fiscal measures: revenue gap grants and tax incentives for industries in the residual State.
• Central institutions: a list of institutions to be set up in AP within a time frame, such as IIT, IIM, IISER, a central university, a tribal university, AIIMS, NIT, an oil and gas institution and others.
• Rivers: the Act provides for a Krishna River Management Board and a Godavari River Management Board to regulate water supply and projects, and an apex council.
• Assets and liabilities: immovable assets by location; cash balances, investments, debts and liabilities by population ratio.
• Employees: they were allotted to the two States by the guidelines framed, with options being asked, on the basis of the local cadre.
• Public sector undertakings and institutions listed in the schedules are divided by agreed principles.
• High Court: a common High Court at Hyderabad at first; a separate High Court for AP began functioning in 2019 (notified at the end of 2018) at Amaravati.

4. After 2014: capital and development

• The AP Government chose the Amaravati area on the Krishna for the capital, planned under the AP Capital Region Development Authority (APCRDA), set up by a State law of 2014.
• The Government later announced a three-capital plan (executive, legislative, judicial); the law for it was withdrawn and the matter went to the courts. Check the latest official position for the status of the capital.
• A railway zone for AP (South Coast Railway at Visakhapatnam) was announced as promised in the Act.
• Central institutions established include IIT Tirupati, IISER Tirupati, IIM Visakhapatnam, AIIMS at Mangalagiri, NIT at Tadepalligudem, a central university and a tribal university, as promised.
• Port and industry promises include a steel plant and a refinery and petrochemical complex.
• Special Category Status: this was a category given earlier to hill and border States for extra central help; the Fourteenth Finance Commission made no distinction between special and general category States in tax devolution, and the Union said no new State would get the status, so a special package was offered to AP instead.

5. Implications for residual AP

• Fiscal: high revenue deficit and a large share of agriculture in the economy.
• Social: divided families and workforce, and uncertainty for students and employees.
• Positive side: a long coastline, ports, rich river basins, and the opportunity to plan a new capital and planned cities.

6. Constitutional and administrative aspects

• Article 2 deals with admission of new States into the Union; Article 3 deals with formation of new States and alteration of areas, boundaries or names of existing States. A Bill under Article 3 needs the President's recommendation and a reference to the State Legislature for its views, but Parliament is not bound by them.
• A law under Article 3 is not treated as a constitutional amendment under Article 368, so it can be passed by a simple majority.
• Seats in the Lok Sabha and Rajya Sabha were also divided between the two States, and the number of seats in the Legislative Assembly of the residual State was fixed by the Act.
• Administration: a Chief Secretary and a Director General of Police for each State; All-India Service officers were allotted between the two States by a committee. Government departments, universities and corporations shown in the schedules were shared or located on the basis of where they were physically based.
• Cadre and local rights: residents of local areas keep their right to local cadre posts under the Presidential Order, and students keep admission rights under Article 371-D.
• Higher education: for a period of years after the appointed day, students from both States could take admission in certain institutions in Hyderabad under a fixed arrangement.
• Power sector: the Act also provides for sharing of electricity generation and allocation of power between the two States.
• Taxes and revenue: the Act provides for sharing of taxes collected before the appointed day and for revenue deficit grants to the residual State.

7. Why the topic is important for a village or ward secretariat employee

Many citizens ask about Polavaram, the capital, special status and central institutions. A functionary should know the basic dates, the legal basis (Article 3 and the 2014 Act) and the main promises, and should avoid giving personal opinions on matters in court or in negotiation.

Exam traps

• Andhra State (1953) is not the same as Andhra Pradesh (1956).
• Hyderabad is a common capital for up to ten years, not exactly ten years.
• Polavaram is a national project by the Act; the cost is met by the Centre.
• Appointed day is 2 June 2014; the Act was passed in February 2014.
• Article 3 (new States) is not Article 371-D (equal opportunity within the State).
• The Srikrishna Committee was a 2010 committee.
• Two separate river boards: one for the Krishna, one for the Godavari.
• Telangana was formed as the 29th State of India.

One-liners

• 1. Andhra State was the first linguistic State.
• 2. AP was formed on 1 November 1956.
• 3. Telangana became a State on 2 June 2014.
• 4. Article 3 empowers Parliament to form new States.
• 5. Article 371-D gives equal opportunity in jobs and education across regions.
• 6. Hyderabad is the common capital for up to ten years.
• 7. Governor has special responsibility for security in Hyderabad.
• 8. Polavaram is a national project under the 2014 Act.
• 9. Separate river management boards exist for the Krishna and Godavari.
• 10. APCRDA plans the capital region.
• 11. A separate AP High Court started in 2019.
• 12. Assets are divided by location, and debts by population ratio.

Practice questions

1. The appointed day for the formation of Telangana State was

   1. 1 March 2014
   2. 1 November 2014
   3. 2 June 2014
   4. 20 February 2014
   Answer

   C. 2 June 2014

   The AP Reorganisation Act, 2014 came into force on 2 June 2014.

2. Which Article empowers Parliament to form new States?

   1. Article 356
   2. Article 371-D
   3. Article 1
   4. Article 3
   Answer

   D. Article 3

   Article 3 allows formation of new States and alteration of boundaries.

3. Andhra State, the first linguistic State, was formed in

   1. 1947
   2. 1953
   3. 1969
   4. 1956
   Answer

   B. 1953

   It was formed on 1 October 1953.

4. Hyderabad was made the common capital of AP and Telangana for a period of

   1. not more than ten years
   2. twenty years
   3. exactly five years
   4. one year
   Answer

   A. not more than ten years

   The Act says not exceeding ten years.

5. Statements: 1. Andhra Pradesh was formed in 1956. 2. Andhra State had Kurnool as its first capital. Which 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 are correct.

6. The Gentlemen's Agreement of 1956 concerned

   1. water sharing of the Godavari
   2. safeguards for Telangana in jobs and education
   3. capital of residual AP
   4. railway zones
   Answer

   B. safeguards for Telangana in jobs and education

   It gave assurances to Telangana when it merged with Andhra State.

7. Which Committee, formed in 2010, studied the Telangana issue?

   1. Srikrishna Committee
   2. Fazl Ali Commission
   3. Punchhi Commission
   4. Kothari Commission
   Answer

   A. Srikrishna Committee

   The Justice Srikrishna Committee reported in 2010.

8. Under the 2014 Act, the project declared a national project is

   1. Handri-Neeva
   2. Somasila
   3. Gandikota
   4. Polavaram
   Answer

   D. Polavaram

   Polavaram's central funding and implementation were provided by the Act.

9. Who has special responsibility for the security of citizens in Hyderabad after the bifurcation?

   1. The Chief Minister of AP
   2. The High Court Chief Justice
   3. The Governor
   4. The Union Home Secretary
   Answer

   C. The Governor

   Section 8 gives the Governor this responsibility.

10. Statements: 1. Debts and liabilities are divided by population ratio. 2. Immovable assets are divided by location. Which 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

    The Act follows these two principles.

11. The authority set up to plan the AP capital region is the

    1. APCRDA
    2. RBI
    3. APSFL
    4. NITI Aayog
    Answer

    A. APCRDA

    The AP Capital Region Development Authority was created in 2014.

12. Which River Management Boards were provided by the 2014 Act?

    1. Penna and Vamsadhara
    2. Krishna and Godavari
    3. Narmada and Tapi
    4. Cauvery and Tungabhadra
    Answer

    B. Krishna and Godavari

    The Act created boards for the Krishna and Godavari.

13. Article 371-D mainly deals with

    1. reservation in Parliament
    2. financial emergency
    3. new States
    4. equal opportunity in public employment and education within AP
    Answer

    D. equal opportunity in public employment and education within AP

    It protects local candidates across regions of the State.

14. Telangana became the ___ State of India.

    1. 28th
    2. 30th
    3. 27th
    4. 29th
    Answer

    D. 29th

    Telangana was the twenty-ninth State.

15. Which of these is a central institution promised to AP in the 2014 Act?

    1. AIIMS
    2. Reserve Bank of India head office
    3. Indian Space Research Organisation HQ
    4. Supreme Court bench
    Answer

    A. AIIMS

    AIIMS, IIT, IIM and others were listed in the Act.

16. Statements: 1. The AP Legislative Assembly's view on the Bill is binding on Parliament. 2. Parliament can pass an Article 3 law by simple majority. Which is/are correct?

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

    B. 2 only

    The State's view is not binding, and Article 3 laws need only a simple majority.

17. Which pair is correctly matched?

    1. Six-Point Formula - 1953
    2. Fazl Ali Commission - 2010
    3. Sri Bagh Pact - 1937
    4. Gentlemen's Agreement - 1973
    Answer

    C. Sri Bagh Pact - 1937

    Sri Bagh Pact 1937; SRC 1953-55; Six-Point Formula 1973; Gentlemen's Agreement 1956.

18. The Six-Point Formula was announced in

    1. 1937
    2. 2014
    3. 1956
    4. 1973
    Answer

    D. 1973

    It followed the 1969 agitation and led to 1975 orders on local reservation.

19. A major implication of the bifurcation for residual AP was

    1. loss of Hyderabad's revenue base
    2. loss of all rivers
    3. loss of coastline
    4. gain of a larger area
    Answer

    A. loss of Hyderabad's revenue base

    Hyderabad's service and IT revenue stayed in Telangana.

20. The separate High Court of AP began to work in

    1. 2014
    2. 2019
    3. 2010
    4. 2022
    Answer

    B. 2019

    It started functioning in 2019 at Amaravati.

21. Which is the correct sequence of events?

    1. Andhra State - Telangana State - AP
    2. AP - Andhra State - Telangana State
    3. Andhra State - AP - Telangana State
    4. Telangana State - AP - Andhra State
    Answer

    C. Andhra State - AP - Telangana State

    1953, 1956, 2014.

22. The Fazl Ali Commission is better known as the

    1. States Reorganisation Commission
    2. Law Commission
    3. Finance Commission
    4. Planning Commission
    Answer

    A. States Reorganisation Commission

    It was the SRC of 1953-55.

23. Statements: 1. The Act promised a special development package for Rayalaseema and north coastal regions. 2. Special Category Status is mentioned in the Act as a Fundamental Right. Which is/are correct?

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

    A. 1 only

    The package is in the Act; special status is not a right.

24. Mulki rules were meant to

    1. fix river water shares
    2. allot Assembly seats
    3. set court fees
    4. reserve local jobs for residents of the Telangana region
    Answer

    D. reserve local jobs for residents of the Telangana region

    They protected local residents in public employment.

25. Under the Act, immovable assets of the old State are divided mainly on the basis of

    1. population ratio
    2. their location
    3. literacy
    4. number of mandals
    Answer

    B. their location

    Immovable assets go to the State where they are located.

26. Which of the following is NOT a promise of the 2014 Act?

    1. A railway zone
    2. Central educational institutions
    3. A nuclear power plant at Amaravati
    4. Polavaram national project
    Answer

    C. A nuclear power plant at Amaravati

    The Act does not promise a nuclear plant.

27. Statements: 1. Hyderabad will become capital of Telangana alone after the common period. 2. AP has to establish a new capital. Which 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 follow Section 5.

28. Which of the following was the 'first fast-unto-death' leader linked with the demand for Andhra State?

    1. Kandukuri Veeresalingam
    2. Alluri Sitarama Raju
    3. Tanguturi Prakasam
    4. Potti Sriramulu
    Answer

    D. Potti Sriramulu

    Potti Sriramulu's death in 1952 hastened the creation of Andhra State.

29. The Telangana movement of 1969 was mainly over

    1. national highways
    2. alleged violation of job and education safeguards
    3. river water dispute
    4. language script
    Answer

    B. alleged violation of job and education safeguards

    Complaints on safeguards led to the agitation.

30. For revenue loss, the Act provides

    1. transfer of Hyderabad to AP
    2. free electricity for ever
    3. abolishing taxes
    4. revenue deficit grants and incentives for industries
    Answer

    D. revenue deficit grants and incentives for industries

    Fiscal support for the residual State was provided.

31. The IIT promised to AP under the Act is located at

    1. Tirupati
    2. Warangal
    3. Hyderabad
    4. Bhubaneswar
    Answer

    A. Tirupati

    IIT Tirupati serves residual AP.

32. Which Article deals with admission or establishment of new States?

    1. Article 280
    2. Article 2
    3. Article 21
    4. Article 32
    Answer

    B. Article 2

    Article 2 deals with admission or establishment of new States.

33. Statements: 1. An Article 3 law is a constitutional amendment under Article 368. 2. The President recommends an Article 3 Bill. Which is/are correct?

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

    B. 2 only

    Such a law is not an Article 368 amendment; the Bill needs the President's recommendation.

34. Assume a villager asks why AP needs a new capital. The best answer is

    1. Because AP has no cities
    2. Because of the High Court order only
    3. Hyderabad is a common capital only for a limited period and will go to Telangana
    4. Because Amaravati is bigger than Hyderabad
    Answer

    C. Hyderabad is a common capital only for a limited period and will go to Telangana

    The Act limits the common-capital period.

35. The first capital of Andhra State was

    1. Kurnool
    2. Guntur
    3. Vijayawada
    4. Hyderabad
    Answer

    A. Kurnool

    Kurnool was the capital in 1953-56.

36. Which one is a likely benefit for residual AP?

    1. Large IT base of Hyderabad
    2. Telangana's share of rivers
    3. Largest city in the South
    4. A long coastline with ports
    Answer

    D. A long coastline with ports

    The coast offers port and industry potential.

37. The dispute about water between the two States chiefly concerns

    1. Indus
    2. Krishna and Godavari
    3. Ganga
    4. Brahmaputra
    Answer

    B. Krishna and Godavari

    The two river boards were created for these rivers.

38. Statements: 1. The Act came into force on 2 June 2014. 2. Parliament passed the Bill after the appointed day. Which is/are correct?

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

    A. 1 only

    The Bill was passed in February 2014, before the appointed day.

39. Which of these is a Central Government promise related to railways in AP?

    1. Bullet train to Delhi
    2. Metro at every district
    3. Closure of Vijayawada junction
    4. A new railway zone
    Answer

    D. A new railway zone

    A South Coast Railway zone at Visakhapatnam was announced.

40. The Fourteenth Finance Commission is linked in this debate with

    1. Land reforms
    2. Language policy
    3. changes in grants to States and the end of special category for most States
    4. River boards
    Answer

    C. changes in grants to States and the end of special category for most States

    This is why a package was demanded instead.

41. The Act ensures that Telangana's Rajya Sabha and Lok Sabha seats are

    1. given only to Telangana
    2. abolished
    3. given only to AP
    4. divided between the two States
    Answer

    D. divided between the two States

    Parliamentary seats were redistributed.

42. The AP Capital Region Development Authority was set up by

    1. the Planning Commission
    2. a State law of 2014
    3. a Presidential Order of 1975
    4. a Supreme Court order
    Answer

    B. a State law of 2014

    APCRDA was created under a State Act.

43. Statements: 1. The Act provided for a common Governor for both States. 2. The Act provides separate Governors from the appointed day. Which is/are correct?

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

    A. 1 only

    The two States shared a common Governor.

44. The Telangana agitation of 1969 was followed by which formula in 1973?

    1. Gadgil formula
    2. Five-Year Plan
    3. Six-Point Formula
    4. Mandal formula
    Answer

    C. Six-Point Formula

    The Six-Point Formula was agreed in 1973.

45. The Act directs that the Governor's duty in Hyderabad relates to

    1. law and order and security of all citizens
    2. river boards
    3. tax collection
    4. school admissions
    Answer

    A. law and order and security of all citizens

    Section 8 gives him that special duty.