Cong gives in-principle nod for Telangana state

The party conveyed to Andhra CM that a separate state resembling the former princely state of Hyderabad would be created with the same name

The Congress party has decided in principle to divide Andhra Pradesh and create a separate state of Telangana. Indications of this were evident when the general secretary in charge of the state, Digvijay Singh, told reporters after a protracted core group meeting of the party that the "consultation process on Telangana (is) over" .

The party conveyed to Andhra Pradesh chief minister Kiran Kumar Reddy that a separate state resembling the former princely state of Hyderabad would be created with the same name. The present Andhra capital, Hyderabad, would be a shared capital of the two states for the time being. Two contiguous districts from the Rayalseema region - Anantapur and Kurnool - could be conjoined to the new state but only after the two districts gave their assent to the proposal.

Congress sources said the shared capital arrangement could last anywhere from five to 10 years. No definite decision has been taken on the capital for the rest of Andhra with both Vijayawada and Visakhapatnam being in contention.

Apart from the chief minister, Pradesh Congress Committee chief Botsa Satyanarayana was also present at the two-hour long core group meeting.

The decision is being interpreted as a victory for deputy chief minister Damodar Rajanarasimha, who unlike the former two, is a strong advocate for a separate Telangana.

Meanwhile, the decision would need to be ratified by the Congress working committee (CWC), which is likely to meet soon. The CWC, according to sources, will also take a call on the time frame of how the demerger is to take place.

Other crucial aspects that need to be worked out is the sharing of revenue, assets, river waters, and liabilities. In all likelihood, the actual state would be carved out in 2014.

Hectic parleys took place all day with leaders belonging to both pro and anti-Telangana factions making a beeline for the capital to build pressure on the central leadership. Chief Minister Reddy, the state Congress chief and the deputy chief minister reportedly held a separate meeting with Digvijay Singh.

Meanwhile, several YSR Congress MLAs have already quit and several Congress MLAs, who were in favour oif a united Andhra have, threatened to resign. What had compounded the long simmering problem for the Congress was the clear divisions within the Congress itself on the issue. It may be recalled that senior Congress leader Keshava Rao had already quit some time back and joined the TRS.

The Teleugu Desam Party is purportedly undecided on the issue, while the Telangana Rashtra Samithi expectedly has been weaning away disgruntled Congressmen into its fold.

The Bharatiya Janata arty (BJP) in the state has decided to throw its weight behind a separate Telangana.

The decision has far-reaching economic implications.