Revenues from Hyderabad to go to Telangana after bifurcation: Jairam Ramesh

Union Minister of Rural Development Jairam Ramesh on Thursday said that after bifurcation of Andhra Pradesh revenues from Hyderabad would go to new state of Telangana, and that Hyderabad would serve as common capital of Telangana and Seemandhra for ten years.

He also said that Seemandhra would enjoy special category status for the next five years and would get Rupees 500 billion during the period.

"Not one rupee of the revenues generated in Hyderabad - property tax, motor vehicles tax, sales tax, excise, entertainment tax -- not one rupee will go to Seemandhra; it will all go to Telangana. That is why the prime minister announced a six point package for Seemandhra," said Ramesh, while speaking to mediapersons.

Critics say the Congress, which proposed the bill and leads a coalition government, is seeking to shore up its political fortunes after dragging its feet over an issue that has lasted four decades.

However, Ramesh said that the allegations were all false and the bill had been pending for many years.

To compensate the second half of Andhra Pradesh, Seemandhra, for revenues trickling down to Telangana, Ramesh said that the remaining rump would be given a special category status for the coming five years aimed at promoting industrial development.

"Because Seemandhra is losing revenue from Hyderabad, we have compensated by giving it special category status. At least Rupees 500 billion in the next five years will be the benefit to Seemandhra," said Ramesh.

He also said that only a certain region of Hyderabad would be the shared by both the new states and the rest of the area would specifically belong to Telangana and added that a lot of preparations were needed to be put in place before the execution of the proposal finally happens.

"Roughly 84000 state level employees have to be allocated. Assets have to be bifurcated -APJENCO, SINGERENI, so many companies - they have to be bifurcated. Personnel has to be allotted, boards have to be constituted," said Ramesh.