Business Standard

The logic of Andhra Pradesh division

Related News

On August 19, 1953, the then member of from Nizamabad in said in the Lok Sabha: "Unfortunately, in the whole of Andhra, that is the 11 districts, there is no single town, which, I think, would be worth calling even a district centre. Fortunately, in Hyderabad, we have got a readymade capital, one of the best cities in the whole of India, very good cement roads, many buildings and all the amenities of city life. Therefore, if a decision about Hyderabad city could have been taken, Hyderabad city would have been a very easy and ready capital and so many difficulties and hurdles would have been easily overcome." (Quoted in Srikrishna Commission report, 2010.)

The city of Hyderabad used to fascinate the people of Andhra Pradesh then and the fascination continues till date. For, Hyderabad not only has very "good cement roads and many buildings" but is the engine that drives the economy of the state. It contributes as much as eight per cent to the state's gross domestic product (GDP), is home to top educational institutions, has a per capita income that is almost double the state average, contributes 5.51 per cent of the state's industrial output, generates 14.11 per cent of state's total services and possesses a thriving real estate and IT sector.

Is Hyderabad the reason wants separation from the rest of Andhra Pradesh as the region has geographical claim to the capital city? Or has perceived backwardness of the Telangana region fuelled demand for a separate state? Former bureaucrat and now head of Lok Satta Party Jayaprakash Narayan is not way off the mark when he says: "There is no economic reason behind the division of the state. It is essentially a political issue. If that is not the case, why did the Centre take the decision in the manner in which it did, against the will of 60-70 per cent people of the state."

Ironically, as the Srikrishna Commission report notes, while the demand for a separate state of Telangana was made in the 1960s and 1970s, it gained momentum after the state made rapid progress for almost three decades. "Indeed, it could arguably be said that this very progress has led Telangana to revive the demand for a separate state in order to gain greater political space and to bridge more rapidly the remaining, though diminishing, disparities," the report observes.

A detailed analysis of the Srikrishna report clearly establishes the diminishing disparities among the three regions of the state - Coastal Andhra, Rayalaseema and Telangana. A recent paper by G Gangadhar Rao, director, Agro Economic Research Centre, Andhra University, Visakhapatnam, takes the argument further with updated data. In terms of per capita income, while Telangana (with or without Hyderabad) and Coastal Andhra top the state average, Rayalaseema is a clear laggard.

The pattern is similar if one analyses each region's contribution to three segments of the state economy - agriculture, industry and services. Telangana contributes 36.43 per cent to the state's agriculture, 43.18 per cent to the industrial output and 30.91 per cent to the services sector. For Coastal Andhra, the numbers read 46.98 per cent, 37.16 per cent and 39.79, respectively. The much smaller Rayalseema's contributions are in low double digits at 16.4 per cent, 14.15 per cent and 13.77, per cent, respectively.

However, the picture changes if one looks at the per capita revenue generated in all three regions. Rao's paper (EPW, October 19, 2013) says: "An examination of the revenue of regions in AP in 2012-13 reveals that Telangana (inclusive of Hyderabad) has a share of Rs 48,000 crore (69 per cent); Rayalaseema, Rs 5,000 crore (7 per cent); and Andhra, Rs 17,000 crore (24 per cent), while the population shares stand at 42 per cent for Telangana, 18 per cent for Rayalaseema, and 40 per cent for Andhra."

Rao told Business Standard that following the division, "Telangana will be a net gainer of revenue worth Rs 19,000 every year whereas Coastal Andhra and Rayalaseema would suffer a loss of revenue to the tune of Rs 11,000 crore and Rs 7,000 crore, respectively." Is it possible for the Centre to compensate for such a loss of revenue to would-be Seemandhra, asks Rao.

Telangana's revenue generating power comes from Hyderabad. However, even without Hyderabad, the region can compete with the rest of the state on all parameters. If backwardness is not the reason, what is? Why did the people take to the streets while demanding a separate state of Telangana? Srikrishna commission report offers some answers.

"So far as the income change dynamics is concerned, the coastal Andhra region has moved over to a more equitable distribution of income where the deprived, the wage labourers, and the SCs/STs/minorities have gained income during the decades of 1990 and 2000; whereas these communities were not able to improve their household income and living conditions in Telangana. This analysis provides credence to the fact that the most of the deprived communities in Telangana are facing hardship and therefore are vulnerable to mass mobilisation on one pretext or the other, including political mobilisation with promises which may or may not be met," the report observes.

So, relative deprivation of a section of the population is the reason behind protest movements for a separate Telangana, led by the same set of people who would have perhaps ensured that the deprived stayed deprived! And leaders of the movement have been clearly driven by the ambition to become chief minister and ministers. Andhra Pradesh has been in existence for 57 years now. Leaders of Telangana region occupied the chief minister's chair all of four times spanning almost 12 years. Two of the prominent ones being

M Channa Reddy and P V Narasimha Rao, with the latter subsequently becoming the Prime Minister as well.

However, Andhra Pradesh knows better that the chief minister from a particular region does not ensure overall development of that region. Otherwise, how will one explain the relative backwardness of Rayalaseema, whose leaders have occupied the CM's chair for 28 long years?

While leaders from the Telangana region are eyeing ministerial berths and the chief minister's chair, the fear of losing Hyderabad is now driving protests in Seemandhra.

The Bill to carve out Telangana was passed by the on Tuesday.

Read more on:   
|
|
|

The logic of Andhra Pradesh division

On August 19, 1953, the then member of Parliament from Nizamabad in Andhra Pradesh said in the Lok Sabha: "Unfortunately, in the whole of Andhra, that is the 11 districts, there is no single town, which, I think, would be worth calling even a district centre. Fortunately, in Hyderabad, we have got a readymade capital, one of the best cities in the whole of India, very good cement roads, many buildings and all the amenities of city life. Therefore, if a decision about Hyderabad city could have been taken, Hyderabad city would have been a very easy and ready capital and so many difficulties and hurdles would have been easily overcome." (Quoted in Srikrishna Commission report, 2010.)The city of Hyderabad used to fascinate the people of Andhra Pradesh then and the fascination continues till date. For, Hyderabad not only has very "good cement roads and many buildings" but is the engine that drives the economy of the state. It contributes as much as eight per cent to the state's gross domes On August 19, 1953, the then member of from Nizamabad in said in the Lok Sabha: "Unfortunately, in the whole of Andhra, that is the 11 districts, there is no single town, which, I think, would be worth calling even a district centre. Fortunately, in Hyderabad, we have got a readymade capital, one of the best cities in the whole of India, very good cement roads, many buildings and all the amenities of city life. Therefore, if a decision about Hyderabad city could have been taken, Hyderabad city would have been a very easy and ready capital and so many difficulties and hurdles would have been easily overcome." (Quoted in Srikrishna Commission report, 2010.)

The city of Hyderabad used to fascinate the people of Andhra Pradesh then and the fascination continues till date. For, Hyderabad not only has very "good cement roads and many buildings" but is the engine that drives the economy of the state. It contributes as much as eight per cent to the state's gross domestic product (GDP), is home to top educational institutions, has a per capita income that is almost double the state average, contributes 5.51 per cent of the state's industrial output, generates 14.11 per cent of state's total services and possesses a thriving real estate and IT sector.

Is Hyderabad the reason wants separation from the rest of Andhra Pradesh as the region has geographical claim to the capital city? Or has perceived backwardness of the Telangana region fuelled demand for a separate state? Former bureaucrat and now head of Lok Satta Party Jayaprakash Narayan is not way off the mark when he says: "There is no economic reason behind the division of the state. It is essentially a political issue. If that is not the case, why did the Centre take the decision in the manner in which it did, against the will of 60-70 per cent people of the state."

Ironically, as the Srikrishna Commission report notes, while the demand for a separate state of Telangana was made in the 1960s and 1970s, it gained momentum after the state made rapid progress for almost three decades. "Indeed, it could arguably be said that this very progress has led Telangana to revive the demand for a separate state in order to gain greater political space and to bridge more rapidly the remaining, though diminishing, disparities," the report observes.

A detailed analysis of the Srikrishna report clearly establishes the diminishing disparities among the three regions of the state - Coastal Andhra, Rayalaseema and Telangana. A recent paper by G Gangadhar Rao, director, Agro Economic Research Centre, Andhra University, Visakhapatnam, takes the argument further with updated data. In terms of per capita income, while Telangana (with or without Hyderabad) and Coastal Andhra top the state average, Rayalaseema is a clear laggard.

The pattern is similar if one analyses each region's contribution to three segments of the state economy - agriculture, industry and services. Telangana contributes 36.43 per cent to the state's agriculture, 43.18 per cent to the industrial output and 30.91 per cent to the services sector. For Coastal Andhra, the numbers read 46.98 per cent, 37.16 per cent and 39.79, respectively. The much smaller Rayalseema's contributions are in low double digits at 16.4 per cent, 14.15 per cent and 13.77, per cent, respectively.

However, the picture changes if one looks at the per capita revenue generated in all three regions. Rao's paper (EPW, October 19, 2013) says: "An examination of the revenue of regions in AP in 2012-13 reveals that Telangana (inclusive of Hyderabad) has a share of Rs 48,000 crore (69 per cent); Rayalaseema, Rs 5,000 crore (7 per cent); and Andhra, Rs 17,000 crore (24 per cent), while the population shares stand at 42 per cent for Telangana, 18 per cent for Rayalaseema, and 40 per cent for Andhra."

Rao told Business Standard that following the division, "Telangana will be a net gainer of revenue worth Rs 19,000 every year whereas Coastal Andhra and Rayalaseema would suffer a loss of revenue to the tune of Rs 11,000 crore and Rs 7,000 crore, respectively." Is it possible for the Centre to compensate for such a loss of revenue to would-be Seemandhra, asks Rao.

Telangana's revenue generating power comes from Hyderabad. However, even without Hyderabad, the region can compete with the rest of the state on all parameters. If backwardness is not the reason, what is? Why did the people take to the streets while demanding a separate state of Telangana? Srikrishna commission report offers some answers.

"So far as the income change dynamics is concerned, the coastal Andhra region has moved over to a more equitable distribution of income where the deprived, the wage labourers, and the SCs/STs/minorities have gained income during the decades of 1990 and 2000; whereas these communities were not able to improve their household income and living conditions in Telangana. This analysis provides credence to the fact that the most of the deprived communities in Telangana are facing hardship and therefore are vulnerable to mass mobilisation on one pretext or the other, including political mobilisation with promises which may or may not be met," the report observes.

So, relative deprivation of a section of the population is the reason behind protest movements for a separate Telangana, led by the same set of people who would have perhaps ensured that the deprived stayed deprived! And leaders of the movement have been clearly driven by the ambition to become chief minister and ministers. Andhra Pradesh has been in existence for 57 years now. Leaders of Telangana region occupied the chief minister's chair all of four times spanning almost 12 years. Two of the prominent ones being

M Channa Reddy and P V Narasimha Rao, with the latter subsequently becoming the Prime Minister as well.

However, Andhra Pradesh knows better that the chief minister from a particular region does not ensure overall development of that region. Otherwise, how will one explain the relative backwardness of Rayalaseema, whose leaders have occupied the CM's chair for 28 long years?

While leaders from the Telangana region are eyeing ministerial berths and the chief minister's chair, the fear of losing Hyderabad is now driving protests in Seemandhra.

The Bill to carve out Telangana was passed by the on Tuesday.

image

Read More

Lok Sabha okays T-Bill amid din

Unprecedented blackout of House proceedings on TV draws flak

Recommended for you

Columnists Rss icon

Subir Gokarn

Subir Gokarn: Educational reach and grasp
Subir Gokarn

Analysis of data from a recent NSS survey will provide significant inputs into education policy

A K Bhattacharya

A K Bhattacharya: No time for complacency
A K Bhattacharya

Whenever broad economic numbers look good, the political system loses the drive to reform and fix policy problems. Will it be any different this ...

Editorial Comment Rss icon

Mutual distrust

Pragmatism suggests a veto power for the RBI governor

Ending round-tripping

Time for a road map on abolition of participatory notes

TWEETS @ POLITICS
@SinghRPN
@onlyursmusa Wrong,this was 1st time full court hearing held in court premises at this time of the morning
@milinddeora
@DJasraj thanks, hope you've been well 😊
@digvijaya_28
@ANI_news What a U Turn by Arun Jaitley from "Obstructionism is a Legitimate Parliamentary Practice" to the present Statement.
@thekiranbedi
Attended a very useful initiative taken by PHD Chamber of Commerce Delhi by organising Strategic Role of NGOs in CSR http://t.co/jgr06gVQn3
@ajaymaken
Roads full of potholes- PWD under the Delhi Government is facing resource crunch- Never happened earlier. https://t.co/jn4Ux5IfAp
@MPNaveenJindal
RT @OGQ_India: Mangal Champia continues his great run. Through to the quarters of the world archery championships! #RoadtoRio
@Panda_Jay
My Twitter handle changed yesterday to @PandaJay 😊, please follow that..
@ShashiTharoor
My reminiscences of @APJAbdulKalam in the @NewIndianXpress : http://t.co/HN9I166vCv
@Swamy39
@shivasathesh :Last the Caliphate sent marauders to invade Hindustan the Gujarati Maharatta and Andhra kings came together and thrashed them
@narendramodi
Thoughts on Dr. Kalam, written by me in Gujarati. http://t.co/01VwLW2TOZ
@abdullah_omar
RT @JKNC_: NC Working President @Abdullah_Omar reviews progress of works, macadamization of Magam-Beerwah-Budgam road today. http://t.co/IV
@varungandhi80
A great man whose life showed that true knowledge must breed sensitivity, simplicity and kindness. RIP APJ Abdul Kalam.
@ArvindKejriwal
RT @SatyendarJain: Delhi is first state to notify Witness protection policy today.
@PMOIndia
RT @danielocarmon: Layed a wreath on behalf of the Israeli Government&People in honor of exPresident&great scientist @APJAbdulKalam RIP htt…
@rajeev_mp
RT @CityLab: What are the design traits that most encourage pedestrian activity in smaller cities? http://t.co/997Q8bPZ8B http://t.co/33zbX
@quizderek
RT @AITCofficial: WB Govt launches emergency helpline number 1070 for flood situation | http://t.co/be8wgzflcI http://t.co/AtgxtgaV7Y
@
Rahul Gandhi to visit FTII tomorrow to support students' agitation http://t.co/FgftFD7u7b
@SushmaSwaraj
Dr.APJ Abdul Kalam was people's President. My homage to the great soul.
@arunjaitley
My condolences on the sad demise of former President APJ Abdul Kalam. We have lost an ideal citizen. May his soul rest in peace.
@MVENKAIAHNAIDU
He will remain immortal by his words and deeds. long live Kalam Sir ! (2/2)
@nitin_gadkari
भारत के महान सपूत, पूर्व राष्ट्रपति, " मिसाइल मैन " भारत रत्न डॉ. ए पी जे अब्दुल कलाम जी के निधन पर गहरा शोक प्रकट करता हु
@DVSBJP
Tributes to Dr.Abdul Kalam ji Heart touching art by @VilasNayak . @narendramodi ji http://t.co/6RrTXfjQuJ
@umasribharti
चन्‍द्रशेखर राव को बधाई. तेलंगाना राज्‍य का मेरा संकल्‍प एवं सपना पूरा, तेलंगाना की नदियों का ध्‍यान रखेंगें.
@AnanthKumar_BJP
Meeting with Uniform Code of Pharmaceutical Marketing Practice (UCPMP) and officials of Dept of Pharma 29-July-2015 http://t.co/BY9qeaJg7a
@smritiirani
RT @IIM_Shillong: In memoriam, Dr A. P. J. Abdul Kalam (1931-2015) http://t.co/hU9bIahlqg
@drharshvardhan
Praying to God for the peace of the Soul of a great President known as the Missile Man.The Nation&particularly students shall always miss u.
@Gen_VKSingh
Nation mourns passing away of a gr8 scientist& president.His inspirational presence wil b missed by http://t.co/B4mKJSH0qq @APJAbdulKalam Ji
@Rao_InderjitS
Strongly feel Gurgaon is one of the most suited cities for inclusion in Smart City Scheme @narendramodi @mlkhattar http://t.co/XiTzk4EgRU
@nsitharaman
An achiever, rooted in Indian tradition, simple, motivated the young to dream, dedicated himself to public cause - APJ Abdul Kalam-Respects
@RSSorg
डॉ. ए.पी.जे. अब्दुल कलाम, असंख्य मनों को प्रकाशित करने वाले दूरदृष्टा : Dr Bhagwat http://t.co/HAHFdZ6avB

Back to Top