COMMITTEE FOR CONSULTATIONS ON THE SITUATION IN ANDHRA PRADESH REPORT December 2010 emblem THE COMMITTEE CHAIRPERSON Shri Justice B N Srikrishna (Retd.) Former Judge, Supreme Court of India MEMBER SECRETARY Shri Vinod Kumar Duggal, IAS (Retd.) Former Home Secretary, Government of India MEMBERS Prof (Dr.) Ranbir Singh Vice Chancellor, National Law University, Delhi Dr. Abusaleh Shariff Chief Economist /Senior Fellow, National Council of Applied Economic Research, Delhi Prof (Dr.) Ravinder Kaur Department of Humanities and Social Sciences, IIT, Delhi The Inter State Council Secretariat (ISCS) provided full secretarial assistance including technical and budgetary support to the Committee CONTENTS VOLUME - I Prologue i Approach and Methodology iv Acknowledgements xii List of Tables, Figures, Appendices xvii Abbreviations xxix Chapter 1 Developments in Andhra Pradesh-A Historical Background 1 Chapter 2 Regional Economic and Equity Analysis 63 Chapter 3 Education and Health 125 Chapter 4 Water Resources, Irrigation and Power Development 177 Chapter 5 Public Employment Issues 245 Chapter 6 Issues Relating to Hyderabad Metropolis 295 Chapter 7 Sociological and Cultural Issues 341 Chapter 8 Law & Order and Internal Security Dimensions 423 Chapter 9 The Way Forward 425 VOLUME - II Appendices 1-173 Index 174 “In ages long past a great son of India, the Buddha, said that the only real victory was one in which all were equally victorious and there was defeat for no one. In the world today that is the only practical victory; any other way will lead to disaster”. Pt. Jawaharlal Nehru speaking on „Disputes and Discord. in the United Nations General Assembly on October 3, 1960 Prologue It has not been an easy task. The mandate for the Committee entailed voluminous research work and wide consultations with all stakeholders. During these consultations, the Committee discussed with political parties and concerned groups all events of a serious historical, political, economic, social and cultural significance pertaining to the state of Andhra Pradesh since the country.s independence. Essentially, the Committee, inter alia, was required to “examine the situation in the State of Andhra Pradesh with reference to the demand for a separate State of Telangana as well as the demand for maintaining the present status of a United Andhra Pradesh ……. seek a range of solutions that would resolve the present difficult situation and promote the welfare of all sections of the people, to identify the optimal solutions for this purpose and to recommend a plan of action and a road map ………. and to make any other suggestions or recommendations that the Committee may deem appropriate”. Once the Committee began to investigate the issues in detail, the scope of the research became both wider and deeper. Although the Committee realized at the outset that for an issue of such magnitude with regional as well as national implications, it would be hard-pressed to complete the task in the time allotted, it was equally conscious that any delay in the submission of the Report could only be detrimental to the cause and that delay may even provoke people.s emotions, possibly with serious consequences. The timely completion and submission of the Report was, therefore, given the highest priority by the Committee. We only hope that the efforts invested have done justice to the task at hand. 2. To look back, Andhra Pradesh was formed in 1956 as the first linguistic (Telugu) state with the merger of two different regions, with a majority of the people opting for integration and the rest, forming a sizable section, yearning for an independent identity for Telangana region. The formation of the state was somewhat conditional; brought about through the “Gentlemen.s Agreement”, the objective of which was to bring the less developed region of Telangana on par with the rest of the state. This goal, which looked achievable at the time, however, was not fully realized. Disaffection on both the Telangana and the Andhra sides came to a head in the late sixties and early seventies with both sides, at one point, wishing to go their separate ways. At that time, the Six Point Formula ushered in by Smt. Indira Gandhi, and agreed to by both sides, served to dissolve the tension and keep the state united. Subsequently, the state saw significant economic and social progress for over three decades. As a result, Andhra Pradesh today stands as one of the front runners among the progressive states in the country. 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 resulting agitation which posed a serious law and order problem in the state in late 2009 - early 2010, eventually led to the constitution of this Committee. 3. The details of the approach and methodology followed by the Committee for completing the task are outlined later in this section of the Report while the comprehensive discussion on the subjects investigated has been covered in the subsequent portion. After preliminary meetings, and on examination of the memoranda received from various stakeholders and the general public, the areas needing research and investigation were identified by the Committee. These areas include Historical Background; Regional Economic and Equity Analysis; Education and Health; Water Resources, Irrigation and Power Development; Issues relating to Hyderabad Metropolis; Public Employment; Sociological and Cultural issues; and last but not the least the Internal Security dimensions. Every effort was made to collect exact data and information on these subjects which was analysed thoroughly and as accurately as possible. The legal and Constitutional aspects and the framework required for various possible options for resolution of the issue have been highlighted in Chapter 9 of the Report titled “The Way Forward”. 4. At the end of the investigation, it began to appear that there was a case both for a separate Telangana as well as for keeping the state united. Some other options, particularly bringing into focus the issue of backwardness of Rayalaseema region and some other parts of the state, were also suggested by different stakeholders and these too have been examined. After considering all aspects, the Committee found the balance tilting in favour of keeping the state united, though some valid and strong reasons that had continued to cause discontent in Telangana region since its merger indicated that the demand for separation was also not entirely unjustified. All these aspects have been discussed in detail in Chapter 9 of the Report and conclusions arrived at. The mandate given to the Committee having been fulfilled, the Committee now hopes that the maturity of our governance system will lead to a rightful resolution of this contentious issue. APPROACH AND METHODOLOGY The Committee and its Terms of Reference Pursuant to the Union Home Minister’s meeting with the eight recognized political parties of Andhra Pradesh on January 5, 2010, the Government of India constituted a Committee for consultations on the situation in Andhra Pradesh (CCSAP), with the following composition, vide Home Secretary’s d.o. letter dated February 3, 2010 (Appendix – AM.1), to hold wide ranging consultations with all sections of the people including all the political parties and various groups , with a view to examine the demand for a separate State of Telangana as well as for maintaining the present status of a united Andhra Pradesh: (1) Shri Justice B.N. Srikrishna, Retired Judge, Supreme Court of India ….. Chairman (2) Prof. (Dr.) Ranbir Singh, Vice Chancellor, National Law University, Delhi ….. Member (3) Dr. Abusaleh Shariff, Senior Research Fellow, International Food Policy Research Institute, Delhi1 …..Member (4) Prof. (Dr.) Ravinder Kaur, Professor, Department of Humanities and Social Sciences, Indian Institute of Technology Delhi ….. Member (5) Shri V.K. Duggal, IAS (Retd.), Former Union Home Secretary ….. Member Secretary 1 Now Chief Economist/Senior Fellow, National Council of Applied Economic Research, Delhi The Chairman, the Member Secretary and the Members, accordingly, joined the Committee on February 3, 2010. The Chairman was accorded the status of the sitting Supreme Court Judge and the Member Secretary, the rank of a Union Minister of State, vide Ministry of Home Affairs’ letter No. 12012/1/2009 – SR (Pt. – I) dated March 3, 2010, read with Ministry of Home Affairs’ letter No. IV/12013/9/2004 – CSR dated August 14, 2007. The three Members were appointed on Part-Time basis (Appendices – AM.2 and AM.3). The Terms of Reference of the Committee, as reproduced below, were notified vide d.o. letter No. 12012/1/2009 – SR dated February 12, 2010, of Special Secretary, Ministry of Home Affairs (Appendix – AM.4):- (1) To examine the situation in the State of Andhra Pradesh with reference to the demand for a separate State of Telangana as well as the demand for maintaining the present status of a united Andhra Pradesh. (2) To review the developments in the State since its formation and their impact on the progress and development of the different regions of the State. (3) To examine the impact of the recent developments in the State on the different sections of the people such as women, children, students, minorities, other backward classes, scheduled castes and scheduled tribes. (4) To identify the key issues that must be addressed while considering the matters mentioned in items (1), (2) and (3) above. (5) To consult all sections of the people, especially the political parties, on the aforesaid matters and elicit their views; to seek from the political parties and other organizations a range of solutions that would resolve the present difficult situation and promote the welfare of all sections of the people; to identify the optimal solutions for this purpose; and to recommend a plan of action and a road map. (6) To consult other organizations of civil society such as industry, trade, trade unions, farmers’ organizations, women’s organizations and students’ organizations on the aforesaid matters and elicit their views with specific reference to the all round development of the different regions of the State. (7) To make any other suggestion or recommendation that the Committee may deem appropriate. The Committee was mandated to submit its Report by December 31, 2010. The first meeting of the Committee was held in Delhi on February 13, 2010. The Basic Approach The first task before the Committee was to decide its approach and methodology to fulfil the mandate given by the Government. While working out the approach and methodology for its study, the Committee kept in mind the Terms of Reference as mentioned above. After exhaustive internal discussions, and going by the sensitive nature of the subject, the Committee decided to adopt a participatory and consultative approach for the completion of its task. Besides, the Gazette Notification No. 12012/1/2009 – SR (Pt –I) dated May 4, 2010 (Appendix – AM.5) had also given clear support to this procedure, while at the same time specifying its working parameters. The Notification, inter alia, stated: “The Committee will devise its own procedure for the discharge of its functions, and the Committee may, if it deems it necessary to do so, have investigation or examination of such matters and by such persons as it may consider appropriate. The Ministries and Departments of the Government of India shall furnish such information and documents and provide assistance as may be required by the Committee from time to time.” To enable the Committee to carry out its mandate, Ministry of Home Affairs, Vide its letter No. 12012/1/2009 – SR dated March 16, 2010 (Appendix – AM.6), sanctioned a complement of 28 officers and staff. In addition, Ministry of Home Affairs, vide its Office Memorandum No. 12012/1/2009 – SR dated March 11, 2010, read with its Office Memorandum of even number dated March 12, 2010 (Appendices – AM.7 and AM.8), conveyed that Inter-State Council Secretariat (ISCS) will provide full secretarial assistance, including technical and budgetary support, to the Committee. For the first few weeks, the Committee worked with a skeleton staff and minimal secretarial assistance and as such it took some time to set up the necessary office infrastructure. This period was, however, used to collect and study the existing material related to the State of Andhra Pradesh with particular regard to the Terms of Reference. The basic approach having been decided, the Committee evolved the following methodology to achieve its mandated task:- (a) To start with, to invite the views and the suggestions from the members of the public as well as other stakeholders by issuing a Public Notice in the National and State print media. (b) To hold consultations with various political parties and other identified groups. (c) To commission analytical and empirical studies on complex and vital issues having significant bearing on the subject through subject matter Experts as well as Academic and Research Institutions of repute. (d) To undertake field visits to districts and villages to get first hand understanding of the problems at the grass roots level. (e) To hold one-to-one in depth discussions with eminent personalities such as intellectuals, senior politicians, retired bureaucrats, legal luminaries, etc. (f) To collect all needed information and data from the Government of Andhra Pradesh, Ministries and Departments of the Government of India and other concerned institutions. (g) To carry out internal analysis and assessment of the issues based on the feedback and inputs received through above procedure. (h) And finally, based on the extensive research and consultations, to dedicate the last about 2-3 months of the tenure of the Committee for preparation and submission of the Report to the Government. It may thus be seen that the work of the Committee, according to the methodology decided as above, was to be broadly completed into two phases. While the first phase included building of the complete information bank pertaining to the subject, the second phase included internal analysis of the issues and preparation and submission of the Report to the Government. The details of the approach and methodology adopted and the work plan of the Committee are briefly discussed in the following Paragraphs. The Public Notices Given the scope of the work assigned and its significance, a Public Notice (Appendix – AM.9) was published on February 20, 2010, in 5 major English newspapers of Delhi and 32 Telugu, English, Urdu and Hindi newspapers of Andhra Pradesh, covering all its regions, inviting the views and the suggestions from the political parties and groups representing different interests including individuals, organizations, institutions and associations on the various issues as mentioned in the Terms of Reference, within 30 days of the publication of the Notice. The underlying idea for the issue of a Public Notice was to consult all sections of the people, especially the political parties, industry, trade, trade unions, farmers’ organizations, women’s organizations, students’ organizations, representatives of minorities etc. and to elicit their views and the suggestions in the matter. In addition to the above, Member Secretary also wrote semi-officially to the leaders in-charge of the eight recognized political parties of Andhra Pradesh, on February 18, 2010, and forwarded to them an advance copy of the Public Notice (Appendix – AM.10). While the above time limit of 30 days stipulated in the Public Notice published on February 20, 2010, was to expire on March 21, 2010, requests had been received by the Committee for extension of the date for submission of the responses on the ground that some more time was required as the issues involved required in-depth study and examination. A second Public Notice (Appendix – AM.11) was, accordingly, brought out on March 22, 2010, in the same 37 newspapers in which the first Public Notice had been published, extending the time limit for submission of the responses upto April 10, 2010. There was overwhelming response to the two Public Notices from the various sections of society, including the political parties, and a very large number of Memoranda / Representations were received. A third Public Notice (Appendix – AM.12) was published in the same 37 newspapers on December 28, 2010, thanking all the stakeholders for their help and cooperation as well as for their well-considered views and suggestions. The Studies As some highly complex and technical subjects, having bearing on the mandate given to the Committee, were involved, approval of the Ministry of Home Affairs was sought and obtained to commission studies on such issues. The following four studies were, accordingly, awarded with a view to facilitate the task of the Committee:- (1) Study on “Issues relating to Water Resources and Irrigation in Andhra Pradesh” – to Shri A.D. Mohile, former Chairman of the Central Water Commission (CWC). (2) Study on “Issues relating to Power Sector in Andhra Pradesh” – to Shri V. B. Gupta, former Chief Engineer of the Central Electricity Authority (CEA). (3) Study on “Issues relating to discrimination, if any, in the matters of employment in the Government of Andhra Pradesh and reservation in educational institutions in respect of Telangana region, pursuant to constitutional provisions under Article 371D, G.O. 610 and various other assurances / agreements on this subject” – to Shri Mukesh Kacker, IAS (Retd.), Director General, Institute for Regulation and Competition, New Delhi. (4) Study on “Issues relating to Greater Hyderabad” – to the Centre for Policy Research (CPR), New Delhi. The Terms of Reference for the above studies were decided after detailed discussion. The domain of the studies was limited to technical, financial, legal, constitutional, social and economic aspects only, within the overall ambit of the Terms of Reference of the Committee. The selection of the Experts / Institutions to conduct the studies was made based on their repute and expertise in the relevant fields. The progress of the work of the experts was constantly monitored and before the submission of final reports, the draft reports were examined and evaluated by the Committee and comments, wherever considered necessary, conveyed to ensure that all relevant issues had been analyzed and included. The Consultations Consultations with the various groups were broadly done in two phases. In the first phase, consultation process started immediately after the publication of the first Public Notice on February 20, 2010, when the political parties, concerned groups and individuals started handing over their respective Memoranda / Representations to the Committee. Brief consultations, as such, took place at that time with these groups / individuals at the level of Member Secretary at Delhi. In the second phase, formal meetings were organized with the various political parties and other groups, starting with the first meeting at Delhi, on April 16, 2010. After that, consultations were held mostly in Hyderabad with over one hundred groups, comprising political parties and other social and economic groups etc. A list of meetings of the Committee held in Delhi / Hyderabad with different political parties / groups / organizations is at Appendix – AM.13. These consultations proved to be a great source of information and afforded very useful insights into the issues involved. The Field Visits The Committee or its Members individually visited all the 23 districts of the State and several villages to get a first hand feel at the ground level. These visits were well organized. During its visit to the districts / villages, the Committee received utmost support and cooperation from the political parties and the general public. The information received from them was immensely useful to the Committee. The Meetings of the Committee / Members The Committee had, right in the beginning, decided that as far as possible it would formally meet at least twice a month. In all, the Committee, since its constitution in February, 2010, met 34 times (Appendix – AM.14). As a procedure, between the meetings of the Committee, the Member Secretary held issue based meetings with the Members, whenever required, to arrive at preliminary conclusions. The conclusions reached in these discussions were placed before the full Committee for approval in its subsequent meeting. The Report Internal analysis and assessment of the issues involved was carried out by the Committee based on the feedback and inputs received through the above procedure. The Committee has, thereafter, prepared the Report and submitted the same to the Government. The Committee has the satisfaction of having completed its task competently and professionally in a most desirable manner and in making the Report as exhaustive as possible within the given timeframe. ACKNOWLEDGEMENTS The mandate assigned by the Government to the Committee to enquire comprehensively into various aspects of the demand for a separate State of Telangana as well as the demand for maintaining the present status of a United Andhra Pradesh was both complex and multi-dimensional. Its achievement would not have been possible without the collaborative assistance, untiring efforts and dedicated service of various individuals and institutions. The list of those who supported the Committee in its efforts in efficiently completing the task of preparing the Report is so large that it would be well-nigh impossible to record separate acknowledgements for each and every one. At the very outset, the Committee has great pleasure in acknowledging the help and assistance received from its administrative Ministry, the Ministry of Home Affairs, from time to time. The Committee would like to place on record its thanks to the Union Home Minister, Shri P. Chidambaram, the Home Secretary, Shri G.K. Pillai and the other concerned officers in the Ministry for providing timely and unstinted administrative and logistical support which greatly facilitated the completion of the task in the stipulated time. The Committee also wishes to thank the Secretaries and other senior officers of various Ministries / Departments of the Government of India and other institutions for furnishing information and statistical data on many vital topics whenever asked for by the Committee. The list of these Ministries / Departments and the institutions is at Appendix – A.1. The first task before the Committee was to decide its approach and methodology to fulfil the mandate given by the Government. After exhaustive internal discussions, and going by the significance of the subject, the Committee decided to adopt a participatory and consultative approach for the completion of its task. As such, the Terms of Reference of the Committee were notified in the Public Notice dated February 20, 2010, published in Telugu, Urdu, English and Hindi newspapers of Andhra Pradesh as well as in the leading English dailies of Delhi. The underlying idea for the issue of the Public Notice was to consult all sections of the people, especially the political parties, industry, trade, trade unions, farmers’ organizations, women’s organizations, students’ organizations, minorities, SCs / STs / BCs, nongazetted officers, lawyers, engineers, etc., with a view to elicit their views and suggestions on the various issues as mentioned in the Terms of Reference. A second Public Notice was issued on March 22, 2010. The Committee expresses its gratitude and appreciation to the leaders and representatives of the political parties, organisations and groups as also to the various sections of the society, which interacted with the Committee and gave their well-considered views and suggestions. It was particularly heartening to receive practical advice from the general public on several topics having bearing on the issue. These valuable inputs helped the Committee a great deal in formulating its recommendations. The Committee awarded four research studies on certain key topics relevant to the issue, to eminent subject matter experts and academic and research institutes of repute. A list of such studies and the names of institutes and individuals is given in the Chapter on ‘Approach and Methodology’ in this Report. The Committee has greatly benefitted from the studies which were based on exhaustive research of the relevant material and its in-depth analysis. The Committee sincerely thanks the institutes and the individuals involved in conducting these studies. The Committee held most of its meetings at Hyderabad. Besides, the Committee or its Members individually undertook field visits to all the 23 districts of the State of Andhra Pradesh as well as the villages in these districts to get a first hand feel at the ground level. The Committee places on record its deep appreciation for the State Government and managements of the other institutions, such as the Lake View State Guest House, the Jubilee Hall and the Dr. MCR Institute of Public Administration for providing full assistance in the successful organization of these meetings and visits. The Committee is particularly grateful to Excellency Shri E.S.L. Narasimhan, Hon’ble Governor, Shri K. Rosaiah, the previous Chief Minister, Shri N. Kiran Kumar Reddy, the present Chief Minister, Shri S.V. Prasad, Chief Secretary, Shri R.R. Girish Kumar, the former Director General of Police, Shri K. Aravinda Rao, the present Director General of Police, Shri R.M. Gonela, Principal Secretary (GAD), other senior officers, district civil and police officials, support staff and civil society in general in this regard. The Committee is particularly appreciative of the tremendous help and high quality assistance provided by Dr. Rajiv Sharma, IAS, Director General, Centre for Good Governance, who was nominated by the State Government as the Nodal Officer of the Committee, and Shri N.V. Ramana Reddy, Special Secretary (Protocol), who most efficiently looked after the protocol and logistical arrangements during the Committee’s numerous visits to the state. The Committee, all along, received able administrative support from the officers and the staff of the Inter-State Council Secretariat (ISCS). During the Committee’s tenure of eleven months, the Secretaries, namely Shri Mukul Joshi and Shri Ajoy Acharya, at different periods, provided full assistance and help to the Committee, not only by attending to the Committee’s needs and requirements but also by placing all available resources at its disposal. In addition, Special / Additional Secretaries & Advisers, namely Shri Shashi Prakash and Shri A.K. Patnaik, at different periods, also provided full support and unstinted cooperation to the Committee. Besides administrative support, the valuable inputs of senior officers in the meetings of the Committee and in the meetings with the various groups are also greatly appreciated. The fact that the ISCS had to support the Committee in addition to their normal duties has also to be recognized. The Government had sanctioned five positions of Senior Consultants/Consultants for the Committee. The following persons were appointed against these positions keeping in view their rich and varied experience; Shri Ravi Dhingra, a retired IAS officer, appointed as Sr. Consultant. He had worked as Additional Secretary & Adviser, ISCS, Chief Secretary, Government of Himachal Pradesh, and had retired as Secretary, ISCS; Shri S.D. Sharma, a retired IAS officer, appointed as Sr. Consultant. He too had worked as Additional Secretary & Adviser, ISCS, and had retired as Member, Board of Revenue, Government of Jharkhand. (Consequent upon his appointment as State Election Commissioner, Government of Jharkhand, he was relieved w.e.f. 16.05.2010.); Shri B.L.Joshi, a retired Senior Economist of National Council of Applied Economic Research, appointed as Sr. Consultant; Dr. (Ms.) Ameeta Motwani, Associate Professor, Department of Commerce, Jesus and Mary College, University of Delhi, appointed as Sr. Consultant; Shri V. Venkatesan, a retired Director of Ministry of Rural Development / Ministry of Power, appointed as Consultant; and Ms. Pradeep Bolina, a retired Joint Secretary of Ministry of Women & Child Development, appointed as Consultant after Shri S.D. Sharma. The Sr.Consultants/ Consultants contributed significantly in the collection of the relevant material and compilation of the same for writing the various chapters of the Report. The Committee would also like to place on record its appreciation of Shri Ilyas Pasha and Ms. Meghna Sharma, attached to the Members, for their help in preparing the Report. Shri Pasha, an officer of the Government of Karnataka, who worked in the Committee on deputation basis, proved to be an asset to the Committee. Like-wise, Ms. Sharma also put in a splendid effort in ensuring that the tasks assigned to her were completed on time. In addition, Prof. G.S. Bhalla and Dr. Gurmail Singh, both Agriculture Experts, Shri Ketan Mukhija, Legal Expert, Shri Anurag Kumar, IIT Delhi, and Shri Devendra Kumar, Ms. Veerpal Kaur and Ms. Jaya Koti of the National Council of Applied Economic Research, also contributed a great deal in their respective fields. The other senior officers, both in the Inter-State Council Secretariat (ISCS) and the Committee, also worked very hard and tirelessly throughout the entire tenure of the Committee. Specific mention may be made here to the efforts put in by the Directors, S/Shri Amitabh Kharkwal, B. Jana, K.P. Mishra, J.B. Sinha and the Deputy Secretaries, S/Shri R.Vaidyanathan, A.K.Sharma and Sushil Kumar. Besides, the Committee is also highly appreciative of other officers, such as the Under Secretaries, the Section Officers and the support staff of both the ISCS and the Committee in contributing a great deal to the smooth functioning of the Committee. The list of the officials, who did a commendable job, however, does not end here. The Committee wishes to place on record the excellent service rendered by the personal staff attached to the Member Secretary and the Secretary, ISCS. In this regard, the Committee would like to specifically mention the names of S/Shri M.M. Sharma, Senior Principal Private Secretary, T.S. Bhumbrah, Private Secretary and Sudarshan Kumar, Assistant, who worked with the Member Secretary, and Smt. Raj Kumari Kewlani, Personal Staff Officer and Shri Inder Jeet Arora, Private Secretary, who worked with the Secretary, ISCS. The Committee is particularly happy to commend Shri Sudarshan Kumar who, in addition to his normal duties, also performed the tedious job of Protocol Assistant in the Committee. A list of the officers and the clerical staff of the ISCS and the Committee is placed at Appendix– A.2. The Committee is happy to acknowledge the dedicated and painstaking work put in by all the officers and staff of the ISCS and the Committee. As mentioned in the beginning itself, it would be almost impossible to acknowledge the contribution of each and every individual by name. While the Committee has taken care to acknowledge the contribution made by various institutions and individuals, it is possible that some names may have been left out inadvertently. As such, the Committee would like to record its sincere thanks for the help and support provided to the Committee by all such institutions and individuals. LIST OF TABLES Table No. Title Page No. 2.1 A Profile of Andhra Pradesh 64 2.2 Per Capita DDP Aggregated at Various Combinations of Regions in AP 67 2.3 Gross cropped area across regions of A.P 86 2.4 Agriculture Operational Land Holdings across regions in AP (2005- 06) 93 2.5 Electricity Consumption of Various Types by Regions in AP (Kwh) 94 2.6 Workers by level of education and gender by Regions, 2007-8 99 2.7 Distribution of Out of District Migrants by Regions in AP, 2007-08 105 2.8 Income inequality (gini coefficient) by rural socio-religious category 111 2.9 Monthly per capita consumption expenditure (`) regions and social groups (2007-08) 112 3.1 Literacy Rate in India and Andhra Pradesh 126 3.2 Region-wise literacy rates of different social groups 130 3.3 Region-wise data for Govt. and Aided Degree Colleges (2008-09) 145 3.4 Region-wise data on Professional Colleges (2009-2010) 147 3.5 Per capita Grant as Calculated by Various Political Groups 150 3.6 Block Grants Released to Regional Universities 150 4.1 Land under cultivation in Andhra Pradesh and the Three Regions in 2007-08 183 4.2 Region Wise Area under Groundwater Irrigation 2007-08 183 4.3 Overexploited, Critical, Sub-critical and Safe Blocks (2007) 184 4.4 Well densities and area irrigated per well (2008-09) 184 4.5 River lifts being planned 185 4.6 Comparison of Total & Surface Minor Irrigation Potential Utilised 194 4.7 Net Area Under Minor Tanks 194 4.8 Status of Tanks in Andhra Pradesh (1993-94) 195 4.9 Regionwise Sectoral Contribution to Gross District Domestic Product at Constant (1999-2000) Prices in Andhra Pradesh 199 4.10 Rural and Urban Population 199 4.11 Generation installed capacity (MW) As on 30-06-2010 223 4.12 Region and District wise Hydro Power Stations installed capacity in A.P. (as on 30-06-2010) 224 4.13 District wise Private Gas based generating installed capacity in coastal Andhra (As on 30.6.2010) 225 4.14 Plans of APGENCO to add new generating plants 227 4.15 Transmission Lines and Distribution Transformers (DTRs) existing as on 31.03.2010 228 4.16 Categorywise sales of electricity in 2009-10 (MUs) 233 4.17 Power consumption of high tension in Million KWH 233 4.18 Total Connected Load HT & LT (MW) 234 4.19 Regionwise number of existing sub-stations in 2010 235 4.20 Per Capita Consumption of Electricity in AP (2009-10) 235 4.21 Irrigation under Bore Wells (2009-10) 236 4.22 Regionwise sales of Electricity (2009-10) for Industry (MUs) 236 4.23 Subsidy provided to agricultural sector inclusive of cross subsidy 237 4.24 Region wise/Station wise employee strength (as on 31.7.2010) 237 4.25 Details of Man power at RTPP (as on 17.08.10) 238 4.26 Details of man power in Distribution Companies in AP 238 4.27 Region-wise Abstract of Manpower Planning in AP Transco 239 4.28 Number of Employees (region-wise) in APgenco and APtrasco and in Power Stations KTPS/RTPS 239 4.29 Infrastructure and Consumption 240 6.1 Various Governance Structures in Hyderabad 303 6.2 Structure of Regional GDPs: Sector Shares for 2005-06 308 6.3 Employment Share (2007-08) and Change (1999-2000 to 2007- 08) by Major Sectors in Hyderabad 312 6.4 SEZs in Andhra Pradesh 314 6.5 Revenue from Property Transfers (share by region) 318 6.6 Residential price index for Hyderabad and other cities (2007 = 100) 319 6.7 Migration Patterns in Hyderabad and Other Regions 322 6.8 Migrants by State of Origin 2001 (Males migrating for work and business) 324 6.9 Population of Hyderabad and Rangareddy by Place of Birth 327 6.10A Destination of Circulatory Migrants by Region 328 6.10B Occupation of Circulatory Migrants by Region 329 6.11A Investment in Hyderabad and Rangareddy by Investor Type 331 6.11B Projects in Hyderabad and Rangareddy (` crore) 332 7.1 Distribution of social groups by state and region (percentage) 360 7.2 Region-wise distribution of religious groups 2001 381 7.3 Language spoken by regional distribution 393 7.4 Chief Ministers/Ministers of Andhra Pradesh from 1956 to 2010 407 7.5 Distribution of Important Portfolios 408 7A Socio-Cultural Groups and development, Regions of Andhra Pradesh, 1983 to 2007/8 418 7B Socio-Cultural Groups and development, Regions of Andhra Pradesh, 1983 to 2007/8 419 7C Socio-Cultural Groups and development, Regions of Andhra Pradesh, 1983 to 2007/8 420 7D Socio-Cultural Groups and development, Regions of Andhra Pradesh, 1983 to 2007/8 421 7E Socio-Cultural Groups and development, Regions of Andhra Pradesh, 1983 to 2007/8 422 LIST OF FIGURES Figure No. Title Page No. 2.1 Growth in Per capita Income across Regions of AP 67 2.2 Regions contribution to State Gross Domestic Product (in %) 68 2.3 Three Year Moving average growth rate of GDDP (constant prices, 1999-2000) by region 69 2.4 Sectoral Contribution to GDDP by Region 69 2.5 SCB Accounts per thousand population and Amount Outstanding per account by regions in AP (As on March 2009) 70 2.6 Growth in Non-Agricultural Credit (amount outstanding) of SCBs by Region 71 2.7 Growth in Non-Agricultural Amount Outstanding per Account of SCBs by Region 72 2.8 Agriculture Credit: Accts per thousand rural population, Amount Outstanding per account and per Hectare GCA of SCBs by regions (As on March 2009) 72 2.9 Growth in Amount Outstanding of SCBs by Regions - (Agriculture) 74 2.10 Growth in Amount Outstanding per Account of SCBs by Regions - (Agriculture) 74 2.11 Percentage Share of Sales Tax Collection across Regions of A.P. 76 2.12 Foreign Direct Investment in AP from 1991 to 2010 by Region 77 2.13 Per capita Expenditure of PRIs (ZP, MP & GP) by region, 2007-08 78 2.14 Representation of Women, SCs and STs in Panchayats across region of A.P. 79 2.15 Percent share in enrolment and expenditure under SSA (upto end of 2007-8) 80 2.16 Regional Shares under NREGS in AP 82 2.17 Motor vehicles per '000 population across regions of A.P.-2009 83 2.18 Trend in road infrastructure 85 2.19 Gross cropped area across regions of A.P 87 2.20 Net Irrigated Area by Region 87 2.21 Trends in Irrigation Intensity across Regions of A.P. 87 2.22 Net Area Irrigated by Source in Telangana 90 2.23 Net Area Irrigated by Source in Rayalaseema 90 2.24 Net Area Irrigated by Source in Coastal Andhra 90 2.25 Land productivity across regions in A.P. (output per hectare of net sown area) 91 2.26 Growth of Electricity consumption per agriculture connection 95 2.27 Growth rates in per capita electricity (LT) consumption 95 2.28 Growth rates in per capita electricity (HT) consumption 95 2.29 Percentage of HHs Electrified across Regions 2004-05 96 2.30 Work participation rate across regions in A.P. 96 2.31 Work Participation Rate by Gender across regions in A.P. (2001) 97 2.32 Broad occupation groups for workers by region (2007-8) 98 2.33 Above Matriculate workers by occupations (2007-8) 99 2.34 Up to Matriculate workers by occupations (2007-8) 100 2.35 Employment share by type and region (2004-05 and 1993-94) 100 2.36 Live Register Enrollment in Employment Exchanges across Regions of AP 102 2.37 Worker per factory across regions of A.P (as on December 2007) 103 2.38 Change in rural per-capita income by income category and region between 1993-94 and 2004-05 109 2.39 Change in rural per-capita income by occupation and region between 1993-94 and 2004-05 109 2.40 Change in rural per-capita income by social groups and region between 1993-94 and 2004-05 109 2.41 Land inequality (gini coefficient) 112 2.42 Deprivation index across regions of AP 114 2.43 Socio-religious composition across regions of AP – 2001 116 2.44a %age Share Then and Now in Population and Area in Telangana 118 2.44b %age Share Then and Now in Educational and Health Infrastructure in Telangana Region 118 2.44c %age Share Then and Now in Road Network, Power consumption & other Indicators in Telangana 118 2.44d %age Share Then and Now in Cropped & Irrigated Area and Foodgrains Production in Telangana Region 118 3.1 Change in Literacy Rate across Regions (1961-2001) 127 3.2 Percentage increase in Literacy (1971-2001) 127 3.3 Literacy Rates Among Population aged 8-24 Years 128 3.4 Number of Years of Schooling among 8-24 Years' Olds 129 3.5 Distribution of Literates by Level of Education across Regions – 2001 133 3.6 Region wise No. of PrimarySchools per Lac Population 134 3.7 Region wise No. of Upper PrimarySchools per Lac Population 135 3.8 Region wise No. of High Schools per Lakh Population 137 3.9 Regional Distribution of Higher Secondary Schools and Junior Colleges 138 3.10 Regional Distribution of Enrolment in Junior Colleges including Higher Secondary Schools 139 3.11 Regional Distribution of SC Hostels per Lac SC Population 140 3.11(a) Regional Distribution of Enrolment in SC Hostels per Lac SC Population 140 3.12 Regional Distribution of ST Hostels per Lac ST Population 141 3.12(a) Regional Distribution of Enrolment in ST Hostels per Lac ST Population 141 3.13 Percapita Block Grants to Regional Universities (Average for 2006- 2010) 151 3.14 Expenditure per Student in Govt. Degree Colleges Average for the Years 2006-10 152 3.15 Expenditure per student in Govt. Polytechnics (Average for the years 2004-05 to 2008-09) 152 3.16 Regional Distribution of Dispensaries per Lakh Population 165 3.17 Region wise No. of Allopathic PHCs per Lakh Rural Population 166 3.18 Regional Distribution of Hospitals per Lakh Population 167 3.19 Regional Distribution of Hospital Beds per Lakh Population 168 3.20 Regional Distribution of Doctors per Lakh Population 169 3.21 Multi Purpose Health Assistants Per lac Rural Population 170 3.22 Selected Indicators of Reproductive Health across Regions 173 3.23 Selected Indicators of Child Health across Regions 174 4.1 Basin Map of Andhra Pradesh 178 4.2 Gross Cropped Area (Stacked*) by regions and years 187 4.3 Gross Irrigated Area 188 4.4 Net Irrigation Composition (Stacked) through all sources-Telangana 189 4.5 Net Irrigation Composition (Stacked) through all sources – Rayalaseema 190 4.6 Composition of Net Irrigation (Stacked) through all sources – coastal Andhra 191 4.7 Net Irrigation by Years and Regions, as Stacked Lines 192 4.8 Multiple Irrigation (Cropping) 193 4.9 Income from Agriculture and Allied activities, per rural person at constant (1999-00) prices 196 4.10 Percentage of Rice in GCA 197 4.11 Percentage of Foodgrains to Gross Cropped Area (GCA) 197 4.12 Foodgrain Production by Regions (Stacked) and Years 198 4.13 Comparison - % GIA to Geographic Areas – coastal Andhra and North coastal Andhra 201 4.14 Comparison – GDP per capita – coastal Andhra and North coastal Andhra 202 6.1 Location of key institutions in Hyderabad 307 6.2: Change in Structure of GDP: Hyderabad and Rest of Andhra Pradesh 310 6.3 Employment share: Andhra Pradesh and Hyderabad 311 6.4: Regional Share of State GDP from Modern Services 314 6.5: Work and Business Related Male Migration by Region 325 7.1 Regional Distribution of SC Caste Groups 369 7.2: Population Distribution of Major Tribal Communities in the State 372 7.3 Distribution of Tribal Groups across Regions and in proposed Manya Seema 374 LIST OF APPENDICES Appendix No. Title Page No. Volume II Acknowledgements A.1 List of the Ministries / Departments of the Government of India and other institutions which furnished the information to the Committee 1 A.2 List of the officers and the clerical staff of the Inter-State Council Secretariat and the Committee 2 Approach and Methodology AM.1 Constitution of the Committee 4 AM.2 Terms and conditions of the Chairman, Members and Member Secretary of the Committee 6 AM.3 Terms and conditions of appointment Member Secretary of the Committee 8 AM.4 Terms of reference of the Committee 11 AM.5 Gazette notification dated: May 4, 2010 regarding constitution of the Committee 14 AM.6 Terms and conditions of officers and staff of the Committee 16 AM.7 Office Memorandum regarding secretarial, technical and budgetary support for the Committee 19 AM.8 Office Memorandum regarding secretarial, technical and budgetary support for the Committee 20 AM.9 Public Notice dated February 20, 2010 21 AM.10 Copy of public notice dated February 20, 2010 forwarded to political parties 22 AM.11 Second public notice dated March 22, 2010 24 AM.12 Third public notice dated December 28, 2010 25 AM.13 List of meetings of the Committee held in Delhi and Hyderabad with different political parties / groups / organisations 29 AM.14 List of meetings of the CCSAP 32 CHAPTER 1 1.1 The Sri Bagh Pact 33 1.2 Excerpts from the Report of the States Reorganisation Commission (Paras 359 to 393) 35 1.3 Gentlemen’s Agreement 1956 (as given by State Government) 46 1.4 Home Ministry’s Note on Gentlemen’s Agreement as tabled in Lok Sabha on August 10, 1956 53 1.5 Union Ministry of Home Affairs Order, 1958 on the constitution of Regional Committee 57 1.6 Gazette Notification – Andhra Pradesh Government on the Regional Committee 71 1.7 Presidential Order dated March 7, 1970 under Article 371 amending the original order of 1958 on the Regional Committee 77 1.8 Prime Minister’s Address in Lok Sabha on December 22, 1972 on the Mulki Rules Bill 80 1.9 Thirty-Second Amendment Act – Insertion of new clause 371-D 91 1.10 Six Point Formula and Presidential Order 97 1.11 Presidential Order Vide G.O. No. 674 dated 20.12.1975 103 1.12 Implementation of Girglani Commission Report 119 CHAPTER 2 2.1 AP & Comparison of Regions 121 2.2 Outstanding Credit of Scheduled Commercial Banks by Occupations and Regions of AP 122 2.3 Productivity growth Kgs /Hectare for Rice, Groundnuts and Cotton by Regions in AP 123 2.4 Percapita DDP at 1999-2000 Prices 124 2.5 Growth in Percapita DDP at 1999-2000 Prices across Districts/Regions 125 2.6 Contribution to State Gross Domestic Product (constant prices, 1999-2000) at factor cost by District/Region 126 2.7 Sectoral Contribution to GDDP (constant prices, 1999-2000) at factor cost by District/Region 127 2.8 Outstanding Credit (All & Agriculture) of Scheduled Commercial Banks across Regions/Districts of AP 128 2.9 Percent share in enrolment and expenditure under SSA by District/Region (upto end of 2007-8) 129 2.10 Gross Cropped Area across Districts/Regions 130 2.11 Net Irrigated Area across Districts/Regions 131 2.12 Irrigation Intensity across Districts/Regions 132 2.13 Percentage of Net Irrigated Area by Canals across Districts/regions 133 2.14 Percentage of Net Irrigated Area by Tanks across Districts/regions 134 2.15 Percentage of Net Irrigated Area by Wells across Districts/regions 135 2.16 Percentage of Net Irrigated Area by Other Water Source across Districts/regions 136 2.17 Agriculture Operational Land Holdings across regions/districts in AP (2005-06) 137 2.18 Work Participation Rate 1961 to 2001 across Districts and Regions 138 2.19 Work Participation Rate by Sex across Districts and Regions 139 2.20 No. of factories (working under Factories Act) and persons employed (As on 31st December, 2007) 140 2.21 District deprivation index across districts/regions of AP during 1990 (early to mid) and 2000 (early to mid) 141 2.22 Combined district deprivation index across districts/regions of AP during 1990 (early to mid) and 2000 (early to mid) 142 2.23 Education, health and infrastructure deprivation index across districts of AP during 1990 (early to mid) and 2000 (early to mid) 143 2.24 Reference years for ‘Then’ and ‘Now’ for indicators shown in Figure 2.44 a to d 144 2.25 A.P. Regional Area, Population and GSDP Compared to Other States 145 CHAPTER 3 3.1 Districtwise Literacy Rates from 1961 To 2001 146 3.2 Education Dimension of Human Development - Schooling and Adult Literacy Levels across Districts of Andhra Pradesh 147 3.3 Enrolment Ratios in Classes I-V, VI-VII and VIII-X 148 3.4 Dropout Rates in Classes I-V, I-VII and I-X (ALL), 2008-09 149 3.5 Districtwise Data for Schools at Primary Level 150 3.6 Districtwise Data on Upper Primary Schools 151 3.7 Districtwise and Regionwise Data on Schooling 152 3.8 Districtwise Data on High Schools 153 3.9 Districtwise Data on Higher Secondary Schools and Junior Colleges 154 3.10 State Universities 155 3.11 Regional Universities 156 3.12 Definition of Local Candidates 157 3.13 Districtwise data for Govt. and Aided Degree Colleges (2008-09) 158 3.14 Districtwise data on Professional Colleges (2009-2010) 159 3.15 List of Universities, Institutions and Research Centres in Hyderabad 160 3.16 Detailed note of Higher Education Department for the Queries and Clarifications raised by CCSAP 161 3.17 Expenditure per Student in Govt. Polytechnics 171 3.18 Locals Enrolled as Percentage of Total 172 3.19 Districtwise Selected Indicators of Reproductive and Child Health 173 Abbreviations Addl. Additional AE Assistant Engineer AIMIM All India Majlis-e-Ittehadul Muslimeen Anicut A diversion structure AP Andhra Pradesh APERC Andhra Pradesh Electricity Regulatory Commission APgenco Andhra Pradesh Generation Company APIIC Andhra Pradesh Industrial Infrastructure Corporation APL Adaptable Programme Lending APPSC Andhra Pradesh Public Service Commission APSEB Andhra Pradesh State Electricity Board APSIDC Andhra Pradesh State Irrigation Development Corporation APSRTC Andhra Pradesh State Road Transport Corporation APtransco Andhra Pradesh Transmission Corporation APTRANSCO AP Transport Corporation ARR Aggregate Revenue Requirements Art. Article ASER Annual Status of Education Report Ayacut Irrigated (Command) Area BBMB Bhakra Beas Management Authority BC Backward Caste BCM Billion Cubic Meters BHEL Bharat Heavy Electricals Limited BPL Below Poverty Line BPPA Buddha Purnima Project Authority BSNL Bharat Sanchar Nigam Limited C E Chief Engineer CCPP Combined Cycle Power Project CCSAP Committee for Consultations on the Situation in Andhra Pradesh CDA Cyberabad Development Authority CEA Central Electricity Authority CEPT Center for Environmental Planning and Technology University CFL Compact Fluorescent Lamp CGM Computer Graphics Metafile CKM Circuit Kilo Meters CM Chief Minister CMIE Centre for Monitoring Indian Economy CMP Common Minimum Programme CPDCL Central Distribution Power Company CPI Communist Party of India Crore Ten million CSO Central Statistical Office CWC Central Water Commission Discoms Distribution companies DOP&T Department of Personnel & Training Dy Deputy E in C Engineer in Chief EE Executive Engineer EHV Extra High Voltage EPDCL Eastern Distribution Power Company Ex Earlier Ft Feet GCA Gross Cropped Area GDDP Gross District Domestic Product GDP Gross Domestic Product GHMC Greater Hyderabad Municipal Corporation GIA Gross Irrigated Area GLC Gas Linkage Committee GMR Giant Magnetoresistive Company GO Government Order GoAP Government of Andhra Pradesh GOI Government of India GoM Group of Ministers GP Gram Panchayats GWDT Godavari Water Dispute Tribunal GWH Giga watt hours Ha. Hectare HADA Hyderabad Airport Development Authority HDPI Human Development Profile of India Hects Hectares HLC High Level Canal HMDA Hyderabad Metropolitan Development Authority HMWSSB Hyderabad Metropolitan Water Supply and Sewerage Board HPCL Hindustan Petroleum Corporation Limited HT High tension (voltage) HUDA Hyderabad Urban Development Authority HVDS High Voltage Distribution System Hydel Hydro-electric IAS Indian Administrative Service ICAP Infrastructure Corporation of Andhra Pradesh IIT Indian Institute of Technology IMA Implementation and Monitoring Authority IMR Infant Mortality Rate IPP Independent Power Producers IT Information Technology ITES Information Technology Enabled Services JAC Joint action Committee KC Canal Krishna Cudappah Canal KG basin Krishna Godavari basin Km Kilometer KM Kilo meter kms Kilo meters KTPS Kothagudam Thermal Power Station KV Kilo volt KWDT Krishna Water Dispute Tribunal Kwh Kilowatt-hour KWH Kilo Watt Hour Lakh Hundred thousand LP Land Productivity LPG Liquefied Petroleum Gas LT Low tension (voltage) M Meter Mandals An administrative unit consisting a group of villages MCH Municipal Corporation of Hyderabad MCM Million Cubic Meters MDDL Minimum Draw Down Level MG-NREGA Mahatma Gandhi National Rural Employment Guarantee Act MHRD Ministry of Human Resource Development MKVDC Maharashtra Krishna Valley Development Authority MLA Member of Legislative Assembly MLC Member of Legislative Council MMRDA Mumbai Metropolitan Region Development Authority MMTS Multi-Modal Transport Service MoWR Ministry of Water Resources MP Madhya Pradesh MP Member of Parliament MP Mandal Parishad MPCE Monthly Percapita Consumption Expenditure MU Million Units MW Mega Watt Nala A small stream NCA Narmada Control Authority NCAER National Council of Applied Economic Research NCE Non Conventional sources of Energy NCMP National Common Minimum Programme NCR National Capital Region NDA National Democratic Alliance NGO Non Governmental Organisation NGOs Non-gazetted Officers NIA Net Irrigated Area NLBC Nagarjunsagar Left Bank Canal NPDCL Northern Distribution Power Company NSA Net Sown Area NSS National Sample Survey NSSO National Sample Survey Organisation NSTL National Software Testing Laboratories NTPC National Thermal Power Corporation NUEPA National University of Educational Planning & Administration OBC Other Backward Classes OMC One Man Commission Para Paragraph PCC Pradesh Congress Committee PCPIR Petroleum, Chemicals and Petrochemical Investment Region PFC Power Finance Corporation PGCIL Power Grid Corporation of India Ltd. PHC Primary Health Centre PLF Plant Load Factor PPP Public Private Partnership PRI Panchayat Raj Institution PRP Praja Rajyam Party QQSUDA Quli Qutb Shah Urban Development Authority R-APDRP Restructured Accelerated Power Development Reforms Programme RBC River Basin Council RBI Reserve Bank of India RDS Rajolibanda Diversion Scheme Retd. Retired RGGVY Rajiv Gandhi Grameen Vidutyikaran Yojana RTPP Rayalaseema Thermal Power Project SAIL Steel Authority of India Limited SC Scheduled Caste SCB Scheduled Commercial Bank SCR South Central Railway SCs Scheduled Castes SE Superintending Engineer SEZ Special Economic Zone SLRB State Level Recruitment Board SPDCL Southern Distribution Power Company SPF Six Point Formula Sq Square Sq. kms Square kilometers SRBC Srisailam Right Bank Canal SRC States Reorganisation Commission SRSP Sriramsagar Project SSA Sarva Shiksha Abhiyan ST Scheduled Tribe STs Scheduled Tribes T&D Transmission and Distribution TBP Tungabhadra Project TCLF Telangana Congress Legislators Forum TDP Telugu Desam Party Telangana exc Hyd Telangana excluding Hyderabad Telangana inc Hyd Telangana including Hyderabad TJAC Telangana Joint Action Committee TMC Thousand million cubic feet TMC Billion cubic feet ToR Terms of Reference TPR Teacher Pupil Ratio TRC Telangana Regional Committee TRS Telangana Rashtra Samithi TVA Tennessee Valley Authority UN United Nations UPA United Progressive Alliance UPSC Union Public Service Commission VAO Village Administrative Officer WPR Work Participation Rate XLPE Cross linked polyethylene insulated power cable (XLPE cable) ZP Zilla Parishad CHAPTER 1 DEVELOPMENTS IN ANDHRA PRADESH- A HISTORICAL BACKGROUND 1.1 Introduction 1 1.2 Andhra Pradesh (1956-1973) 18 1.3 Andhra Pradesh (1973-2000) 37 1.4 Andhra Pradesh (2001-2009) 50 1.5 Andhra Pradesh (November 29,2009 – December 31,2010) 55 1 DEVELOPMENTS IN ANDHRA PRADESH – A HISTORICAL BACKGROUND 1.1 Introduction 1.1.01 The present state of Andhra Pradesh came into being on November 1, 1956. It was constituted with the merger of the large and predominantly Telugu-speaking residuary part of the erstwhile state of Hyderabad with the state of Andhra that had come into existence earlier after its separation from the then Madras state. 1.1.02 Andhra state was constituted as a result of the efforts of Teluguspeaking people of Madras state who wished to have a separate linguistic state for promoting their own distinct culture. The state was formed on October 1, 1953, after the Act of Parliament (the Andhra State Act of 1953) received the President.s assent on September 14, 1953. It was the first state constituted on linguistic basis after India.s independence. At the time of its formation, Andhra state consisted of the districts of Anantapur, Kurnool, Kadapah, Chittoor, Nellore, Krishna, Guntur, East Godavari, West Godavari, Visakhapatnam and Srikakulam. In addition, Alur, Adoni and Rayadurg talukas of the Bellary district were also added to Andhra state. The first two talukas were included in Kurnool district and the last mentioned was added to Anantapur district. Prakasham (Ongole) district came into existence on February 2, 1970, by carving out portions of Nellore, Kurnool and Guntur districts. Similarly, in 1979- 80, a new district Vijayanagaram (now Vizianagaram) was created out of Srikakulam and Visakhapatnam districts. Kurnool, which was the district headquarters, was selected and developed as the capital of Andhra state. The Legislative Assembly functioned from Kurnool and consisted of 196 members. The Andhra High Court was set up on July 5, 1954, and was located at Guntur.1 This arrangement was in keeping with the Sri Bagh Pact that had been arrived at as early as on November 15, 1937, between the leaders of coastal Andhra and Rayalaseema, in which it had, inter-alia, been agreed “that the location of the University, the Headquarters and the High Court may advantageously be in different places so as not to concentrate all civil importance at the same Centre. Accordingly, it is agreed that while the University may continue to be where it is, the High Court and the metropolis be located in suitable places in the coastal districts and the Rayalaseema, the choice being given to Rayalaseema. ” Earlier, in 1927 the University had been located in the north coastal district of Visakhapatnam (Waltair). The details of the Sri Bagh Pact are given at Appendix 1.1. 1 Khan, Md Abdul Waheed (ed.) Brief History of Andhra Pradesh- State Archives, Government of Andhra Pradesh, Hyderabad, p 113-114 2 A.P. State Archives Research Institute, Govt. of Andhra Pradesh, Hyderabad 1.1.03 The Nizam state of Hyderabad, in the meanwhile, had become part of the Indian Union following the Police Action by the Government of India during September 13-18, 1948. The state of Hyderabad was kept under the rule of a military governor till the end of 1949. In January, 1950 a senior administrator M.A.Vellodi, ICS, was made the Chief Minister and the Nizam was given the status of Rajpramukh. After general elections of 1952, the first popular ministry, headed by Burgula Ramakrishna Rao, took charge of the state. The state of Hyderabad, during 1952-56, consisted of the primarily Telugu-speaking districts of Mahabubnagar, Nalgonda, Warangal, Karimnagar, Adilabad, Nizamabad, Khammam, Medak and the city of Hyderabad (including Ranga Reddy district), the predominantly Marathi-speaking northern districts of Aurangabad, Bir, Pharbani, Osmanabad and Nanded and the Kannada-speaking southern districts of Gulbarga, Raichur and Bidar.2 The Telugu-speaking districts together formed more than 50% of the area of Hyderabad state. Notwithstanding the same, Hyderabad, during Nizam.s rule, was the only native state where the language of administration was neither English, nor that of the people of the state. The language of the courts, the administration and instruction in educational institutions was primarily Urdu. 1.1.04 After the formation of Andhra state in October, 1953, the demand for creation of other linguistic states gained momentum. On December 22, 1953, the then Prime Minister, Pt. Jawaharlal Nehru, announced in the Lok Sabha the decision to set up a States Reorganization Commission to examine “objectively and dispassionately” the whole question of the reorganization of the states of the Indian Union. Accordingly, the Government of India, vide Ministry of Home Affairs resolution, dated December 29, 1953, appointed the “States Reorganization Commission” headed by Justice S. Fazal Ali with H.N. Kunzru and K.M. Panikkar as members, to examine and suggest a rational solution for the reorganization of states, based on language. The Commission submitted its report to the Government of India in 1955. “The Commission, after consultations and interactions with various groups of people, is reported to have found the public will in favour of linguistic reorganization. The rationale was that language being the most faithful reflection of the culture of an ethnic group, ethno-lingual boundaries would be considered the most stable and suitable arrangement for the effective working of democratic entities and institutions. It was also perceived that the same would also have the advantage of ease for people.s interaction with the government.”3 1.1.05 SRC itself in the above context concluded in their Report: 3 Report of the Second Commission on Centre-State Relations – Vol. I, Evolution of Centre-State Relations in India, p. 64 “It is obviously an advantage that Constituent units of a federation should have a minimum measure of internal cohesion. Likewise, a regional consciousness, not merely the sense of a negative awareness of absence of repression of exploitation but also in the sense of scope of positive expression of the collective personality of a people inhabiting a state or a region may be conducive to the contentment and well being of the community. Common language may not only promote the growth of such regional consciousness but also make for administrative convenience. Indeed, in a democracy, the people can legitimately claim and the government has a duty to ensure that the administration is conducted in a language which the people can understand.”4 The States Reorganization Commission, accordingly, unanimously adopted the principle of linguistic homogeneity as the basis to recommend the reorganization of states. Based on the recommendations, the States Reorganization Act was passed by the Parliament and came into effect on November 1, 1956. 1.1.06 The SRC in its report also mentioned: 4 SRC Report, p.142 5 SRC Report, p. 359-360 6 SRC,Recommendation No. 4, p. 257 7 SRC Report, Para.4, p. 257 “further reorganization of States in the South is dependent in a large measure on the future of Hyderabad. ………There has been a general demand, with popular support behind it, that the State should be disintegrated on the basis of linguistic and cultural affinity.”.5 Considering the above and other issues, the SRC recommended that: (i) the Kannada-speaking districts of Raichur and Gulbarga be transferred to the then Mysore State (the proposed Karnataka State), (ii) the Marathwada districts should also be detached from Hyderabad State; and as for the primarily Telugu speaking areas, the Commission.s recommendation was that (iii) the residuary State of Hyderabad might unite with Andhra after the General Elections likely to be held in about 1961, if by a two-thirds majority the Legislature of Hyderabad State expresses itself in favour of such a unification.6 The SRC also recommended that the residuary state should continue to be known as Hyderabad state and should consist of Telugu-speaking districts of the then princely state of Hyderabad, namely, Mahabubnagar, Nalgonda, Warangal (including Khammam), Karimnagar, Adilabad, Nizamabad, Hyderabad and Medak, along with Bidar district, and the Munagala enclave in the Nalgonda district belonging to the Krishna district of Andhra.7 1.1.07 The SRC, with the above recommendation regarding the residuary part of Hyderabad, had clearly given an indication that, at that point of time in 1955, it was not sure as to whether its immediate merger or unification with Andhra was the best or most satisfactory answer and that is why it wanted enough time to be given to the people of Hyderabad to think about the matter and determine their future after the general elections that were likely to be held after six years or so. Even in the detailed discussion on the subject, the Commission expressed different viewpoints in its report, giving several pros and cons of the two possibilities, such as:- i) The creation of Vishalandhra is an ideal to which numerous individuals and public bodies, both in Andhra and Telangana, have been passionately attached over a long period of time, and unless there are strong reasons to the contrary, this sentiment is entitled to consideration.8 ii) Another advantage of Vishalandhra will be that the development of Krishna and Godavari rivers will thereby be brought under unified control. The Krishna and Godavari projects rank amongst the most ambitious in India. They have been formulated after prolonged period of inactivity,…. Since Telangana as part of Vishalandhra will benefit both directly and indirectly from this development, there is a great deal to be said for its amalgamation with the Andhra State.9(Para 372 : page 104) iii) The case for Vishalandhra thus rests on arguments which are impressive. The considerations which have been urged in favour of a separate Telangana State are, however, not such as may be lightly brushed aside. (Para 375: page 105) iv) One of the principal causes of opposition to Vishalandhra also seems to be the apprehension felt by the educationally-backward people of Telangana that they may be swamped and exploited by 8 SRC Report, Para 375 9 SRC Report, Para 378, p 105 the more advanced people of the coastal area. In the Telangana district outside the city of Hyderabad education is woefully backward……the real fear of the people of Telangana is that if they join Andhra they will be unequally placed in relation to the people of Andhra and in this partnership the major partner will derive all the advantages immediately while Telangana itself may be converted into a colony by the enterprising coastal Andhra. The full text of the debate on this issue in the Report of the States Reorganisation Commission (Paras 359 to 393) is given at Appendix 1.2. 1.1.08 Following the States Reorganization Act, while the Marathi-speaking districts of the composite Hyderabad state, as mentioned in para 1.1.06, were merged with the then Bombay state, the Kannada-speaking districts of Gulbarga, Raichur and also Bidar were included in the then Mysore state. 1.1.09 In the meanwhile, from the time of formation of Andhra state, in the parliamentary debates during 1953-1955, sentiments were expressed by members of parliament representing the erstwhile state of Hyderabad, in favour of unification of all the Telugu-speaking areas of both Andhra state and erstwhile Hyderabad state. Even stronger expressions were in favour of Hyderabad to be considered and made the capital in place of Kurnool. To quote a few, Shri Heda, MP from Nizamabad, on August 19, 1953, while speaking on the Andhra State Bill mentioned 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………. If Hyderabad is going to be the future capital of Vishal Andhra, why not create those links; why not develop those links which are already there and thereby facilitate the future location of your capital? That is my point………” Shri M.R.Krishna, MP from Karimnagar, talking on the same Bill on August 19, 1953, mentioned on similar lines: “I would like to say that if the temporary capital of Andhra is located somewhere outside Hyderabad, then, after some time when the Government of India decides that Hyderabad should be disintegrated, it would create more problems for the people of Hyderabad who have been all the time patiently hearing and acting on the advice of the Central Government. Therefore, I would say that instead of locating the temporary capital outside Hyderabad, Hyderabad should be immediately disintegrated and the capital should be located in Hyderabad.” Shri Krishnacharya Joshi, M.P. from Yadagiri, in the same session mentioned: “Many people hold the view that unless Hyderabad is disintegrated and the 8 districts of Telangana integrated with the Andhra State, the Andhra State will remain incomplete.…………………….” In other words, the expression was largely in favour of Hyderabad city (not Kurnool) to function as the capital of the Andhra state, with the unification of the Telugu-speaking areas, looking possible in not too distant a future. While these views had been expressed in the Parliament in 1953, in the Telangana convention held in November, 1955, at Secunderabad, Harishchandra Heda, MP, changed his earlier position and strongly supported the formation of a separate Telangana state on a permanent basis. In the resolution so passed at this convention after a long debate, besides the known Telangana protagonists K.V. Ranga Reddy and M. Chenna Reddy, Heda was supported by several other senior Congress leaders, such as APCC President J.V.Narasinga Rao, Ahmed Mohiuddin, MP, M. Hanumantha Rao and the like. 1.1.10 There had been a strong sentiment for the unified Telugu-speaking state for a long time, and more so, since the time the national leadership had agreed in principle on formation of Andhra state in 1946. Towards this end, an organization called Vishalandhra Mahasabha was formed in 1949 by the leaders of Andhra area. This also had the support of a sizeable section of Teluguspeaking people of the Hyderabad state. In fact, the idea of Vishalandhra had originated in Circar districts as early as in 1937. The Andhra Congress Swarajya Party aimed at formation of Andhra province for all Telugu areas, including Telangana. The Working Committee of Andhra Mahasabha, in October, 1942, had resolved in favour of Vishalandhra. The advent of Independence and accession of Hyderabad to the Indian Union in 1948 gave an impetus to the demand of Vishalandhra. Shri A. Kaleswara Rao (who later became the Speaker of Andhra Pradesh Assembly) formed the Vishalandhra Mahasabha in November 1949, ten days after the Congress Working Committee recommended steps for formation of an Andhra Province. The Standing Committee of Vishalandhra Mahasabha met at Warangal in February 1950 and demanded the immediate formation of a separate Andhra state, the disintegration of Hyderabad state and the constitution of Vishalandhra state with Hyderabad as capital. About a month later, the Hyderabad State Congress unanimously demanded the disintegration of Hyderabad and merger of three areas, namely, Telangana, Marathwada and Karnataka in the adjoining linguistic provinces.10 These efforts were intensified in 1953 with the decision of the Government of India on the formation of Andhra state. Notwithstanding the same, there was also a counter-sentiment in the Telugu-speaking areas of Hyderabad state for retaining their independent identity. During this period, Pt. Nehru had also initially spoken in favour of retaining a separate state of Hyderabad and this encouraged the protagonists of independent Telugu-speaking Hyderabad state to intensify their efforts for this cause. Accordingly, SRC became a platform, for both the opponents and the supporters of unification, for submitting their respective viewpoints, which was done very effectively. It is believed that, this is why the SRC could not decide the status of Hyderabad, one way or the other. The SRC report, simultaneously favouring the separate residuary Hyderabad state as well as mentioning 10 Rao, K.V.N. 1973 The Emergence of Andhra Pradesh, Popular Prakashan (Sri K.V.N. Rao is a noted historian who had also served earlier as a Consultant in the Research and Policy Division of the Union Ministry of Home Affairs) unification, led to intensive lobbying by both the groups and both continued with their efforts to achieve their respective goals. In the context of submitting a Memorandum to SRC, the Hyderabad Pradesh Congress Committee under the Presidentship of K.V. Ranga Reddy (who was for separate Telugu state of Hyderabad) resolved in early 1954, that the future of the three linguistic regions should be decided by the Congress delegates of Telangana, Marathwada and Karnataka in separate meetings which were to be held in June, 1954. Of the Telangana delegates numbering 107, only 50 attended the meeting arranged on June 7, 1954. At the time of voting the next day, only 44 were present. K.V. Ranga Reddy himself did not attend. Dr. M. Chenna Reddy, a Minister in the Hyderabad Government (who was also for separate Telugu State of Hyderabad), moved a resolution recommending the formation of two Telugu states, which was carried by 31 votes to 13. The 13 delegates who opposed, urged the PCC President that the Resolution should not be considered representative of the Telangana opinion. The Hyderabad PCC executive felt that the integrity of Telangana should be preserved in one Telugu state. The Telangana state, as finally demanded, was to consist of the Telangana districts and some Telugu speaking parts in the Marathwada and Karnataka districts and some portion of the Bhadrachalam Taluk of the East Godavari district. However, at the Chief Ministers. conference on October 22, 1955, Andhra and Hyderabad Chief Ministers suggested immediate merger of Telangana and Andhra instead of waiting for five years as proposed by the SRC. In this situation, the Hyderabad Assembly discussed an official resolution on SRC Report from November 25 to December 3, 1955. The trend of the debate was that, out of the 174 members of the House barring the Speaker, who participated in the discussion, 147 members expressed their views. Of these, 103 favoured Vishalandhra, 29 favoured independent Hyderabad state and 15 remained neutral. From the residuary states, 59 wanted Vishalandhra, 25 separate Hyderabad state and 1 was neutral. 1.1.11 The central leadership of the Indian National Congress decided that the issue of “unified larger Telugu state” deserved further examination since the views on the same were somewhat divided. As such, a sub-committee for this purpose was appointed by the Congress Party. The Government of India, therefore, while accepting other SRC recommendations, kept aside the decision on this particular issue. Both Andhra and Hyderabad states were ruled by the Congress Party at that time. (The two visits by some members of the subcommittee, headed by the then Congress President, U.N. Dhebar, and including luminaries such as Pt. Nehru, Lal Bahadur Shastri, K.N. Katju and others in December 1955 and January 1956 to Hyderabad state, led to the final decision of the trifurcation of the state, but the sub-committee could not decide with regard to the status of the Telugu-speaking areas of “Hyderabad State”). The national leadership of the Congress Party was divided on the question of merging the residuary Hyderabad state with Andhra, with its senior leader Maulana Azad opposed to such a merger. However, with the leadership from Andhra and a majority of the public opinion from the Hyderabad state favouring unification, it is reported that Pt. Nehru was able to persuade Maulana Azad, whereafter, the central leadership took the decision for the formation of Vishalandhra.11 In keeping with the proposal made by both the Chief Ministers in the CMs. Conference of October, 1955, the Central Government thus became agreeable to create the unified state. The leading protagonists of Telangana, like K.V. Ranga Reddy and M. Chenna Reddy, both Ministers in Hyderabad state, nevertheless, stuck to their demand for two separate Telugu states and continued their efforts towards that end. At this point of time, it was felt necessary that some safeguards be ensured in the interest of Telangana and the exercise that was made in this regard resulted in an Agreement between the two regions. At the instance of the Central Government, a meeting of the representatives of both the regions was called in Delhi, which took place at Hyderabad House on February 20, 1956. The two groups were represented by their top state leadership in the Governments and the Pradesh Congress Committees in equal numbers (four each) from both the regions, as given below in the text. After a detailed discussion in the meeting, a 11 Rao, K.V.N. 1973 Emergence of Andhra Pradesh, Popular Prakashan, p 300 comprehensive agreement on the “Safeguards for Telangana” was signed by all the eight participants. The proceedings of this important meeting, as signed by both the groups, popularly known as Gentlemen.s Agreement 1956, are reproduced below verbatim (see also Appendix 1.3) SAFEGUARDS FOR TELANGANA Proceedings of the meeting held at Hyderabad House, New Delhi on 20th February, 1956: Present: 1. Shri B.Gopala Reddy 2. Shri Sanjeeva Reddy 3. Shri G. Latchanna 4. Shri A.Satyanarayana Raju 5. Shri B.Ramakrishna Rao 6. Dr. M. Chenna Reddy 7. Shri J.V. Narsing Rao, 8. Sri K.V.Ranga Reddy. The following points, arising out of the unification of Telangana and Andhra, were discussed, and the conclusions arrived at are as follows: 1. The expenditure of the Central and General Administration of the State should be borne proportionately by the two regions and the balance of income from Telangana should be reserved for expenditure on the development of Telangana area. This arrangement will be reviewed after five years and can be continued for another five years if the Telangana members of the Assembly so desire. 2. Prohibition in Telangana should be implemented in the manner decided upon by the Assembly members of Telangana. 3. The existing educational facilities in Telangana should be secured to the students of Telangana and further improved. Admission to Colleges, including technical institutions in the Telangana area, should be restricted to the students of Telangana area, or they later should have admission to the extent of onethird of the total admission in the entire state, whichever course is advantageous to Telangana students. 4. Retrenchment of services should be proportionate from both regions if it becomes inevitable due to integration. 5. Future recruitment to services will be on the basis of population from both regions. 6. The position of Urdu in the administrative and judicial structure existing at present in the Telangana area may continue for five years, when the position may be revised by the Regional Council. So far as recruitment to services is concerned, knowledge of Telugu should not be insisted upon at the time of recruitment, but they should be required to pass a prescribed Telugu test in two years time after appointment. 7. Some kind of domicile rules e.g., residence for 12 years should be provided in order to secure the prescribed proportion to recruitment of services for Telangana area. 8. Sales of agricultural lands in Telangana area to be controlled by the Regional Council. 9. A Regional Council will be established for the Telangana area with a view to secure its all-round development in accordance with its needs and requirements. 10. The Regional Council will consist of 20 members as follows: 9 members of the Assembly, representing each district of Telangana, to be elected by the Assembly members of the Telangana districts separately. 6 members of the Assembly or the Parliament, elected by the Telangana representatives in the Assembly. 5 members from outside the Assembly to be elected by the Telangana members of the Assembly. All ministers from Telangana region will be members. The Chief Minister or the Deputy Chief Minister, whoever is from Telangana, will be the Chairman of the Council. Other Cabinet Ministers may also be invited. 11. (a) The Regional Council will be a statutory body empowered to deal with and decide about matters mentioned above, and those relating to planning and development, irrigation and other projects, industrial development within the general plan and recruitment to services in so far as they relate to Telangana area. If there is difference of opinion between the views of the Regional Council and the Government of the state, a reference may be made to the Government of India for final decision. (b) Unless revised by agreement earlier, this arrangement will be reviewed at the end of ten years. 12. The Cabinet will consist of members proportionately 60:40 per cent for Andhra and Telangana respectively. Out of the 40 per cent Telangana Ministers, one will be a Muslim from Telangana. 13. If the Chief Minister is from Andhra, the Deputy Chief Minister will be from Telangana and Vice versa. Two out of the following portfolios will be assigned to Ministers from Telangana: (a) Home (b) Finance (c) Revenue (d) Planning and Development and (e) Commerce and Industry. 14. The H.P.C.C. President desires that the P.C.C. should be separate for Telangana up to the end of 1962. A.P.C.C. President has no objection. The above agreement was arrived at on February 20, 1956. It was signed by 1. B.Gopala Reddy, Chief Minister of Andhra; 2. N.Sanjeeva Reddy, Deputy Chief Minister of Andhra; 3. G.Latchanna, Minister in the Andhra Cabinet & Leader of the Krishikar Lok Party - a constituent of the United Congress Front which contested the Andhra elections (1955) and formed the Ministry; 4. A.Satyanarayana Raju, President, Andhra Provincial Congress Committee; 5. B.Ramakrishna Rao, Chief Minister, Hyderabad; 6. K.V.Ranga Reddy, Minister, Hyderabad; 7. Dr. M. Chenna Reddy, Minister, Hyderabad; and 8. J.V.Narsinga Rao, President, Hyderabad Provincial Congress Committee. The agreement has been recorded in a book, „THE STRUGGLE AND THE BETRAYAL the Telangana story. written by K.V. Ranga Reddy, the then Deputy Chief Minister, who was also one of the signatories to the agreement in which he has recorded the following: All those above points (meaning thereby the points covered in the Gentlemen.s Agreement) were agreed upon in meeting held as above on 20th February, 1956. We have today further discussed about the two following points, on which agreement could not be arrived at: (1) The name of the new state – the Telangana representatives wanted that the name of Andhra Telangana (as proposed in the draft bill) be retained, while the Andhra representatives wanted that Andhra Pradesh, as amended by the Joint Selection Committee, be retained. (2) Regarding the High Court, the Telangana representatives wanted that there should be a bench at Guntur, with the principal seat at Hyderabad, while the Andhra representatives desired that there should be no bench at Guntur and the entire High Court be located only at Hyderabad. (It may be noted that the States Reorganization Act had already provided satisfaction with regard to the location of Benches of the High Court.) Subsequently, a note on the safeguards proposed for Telangana area providing, inter-alia, for the constitution and functions of a regional committee of the Legislative Assembly of the Andhra Pradesh state was laid before the Parliament, in the Lok Sabha, on August 10, 1956. Thereafter, the Andhra Pradesh Regional Committee Order, 1958, as approved by the President of India, under Clause 1 of Article 371 of the Constitution to give effect to this scheme embodied in the said note, was issued on February 1, 1958. Copy of the note referred to above is reproduced below verbatim (see also Appendix 1.4) A. Regional Standing Committee 1. There will be one legislature for the whole of the Andhra Pradesh state, which will be the sole law-making body for the entire state, and there will be one Governor for the state, aided and advised by a Council of Ministers, responsible to the state Assembly for the entire field of administration. 2. For a more convenient transaction of business of the Government with regard to some specified matters, the Telangana area will be treated as a region. 3. For the Telangana region, there will be a regional standing committee of the State Assembly consisting of the members of the State Assembly belonging to that region, including the ministers from the region, but not including the Chief Minister. 4. Legislation relating to specified matters will be referred to the Regional Committee. In respect of specified matters proposals may also be made by the Regional Committee to the state Government for legislation, or with regard to questions of general policy not involving any financial commitments other than expenditure of a routine and incidental character. 5. The advice tendered by the Regional Committee will normally be accepted by the Government and the State Legislature. In case of difference of opinion, reference will be made to the Governor, whose decision will be final and binding. 6. The regional committee will deal with the following matters:- i) Development and economic planning within the framework of the general development plans and policies formulated by the State Legislature; ii) Local Self-Government, that is to say, the constitutional powers of Municipal Corporations, Improvement Trusts, District Boards, and other district authorities for the purpose of local self-Government or village administration; iii) Public Health and sanitation, local hospitals and dispensaries; iv) Primary and Secondary education; v) Regulation of admissions to the educational institutions in the Telangana region; vi) Prohibition; vii) Sale of agricultural land; viii) Cottage and Small Scale Industries; and ix) Agriculture, Co-operative Societies, Markets and Fairs. Unless revised by agreement earlier, this arrangement will be reviewed after ten years. B. Domicile Rules A temporary provision will be made to ensure that for a period of five years, Telangana is regarded as a unit, as far as recruitment to subordinate services in the area is concerned; posts borne on the cadre of these services may be reserved for being filled by persons who satisfy the domicile conditions as prescribed under the existing Hyderabad Rules. C. The position of Urdu The Government of India would advise the State Government to take appropriate steps to ensure that the existing position of Urdu in the administrative and judicial structure of the state is maintained for a period of five years. D. Retrenchment of surplus personnel in the new State The Government of India does not anticipate any retrenchment. The intention is that so far as possible, the service personnel from the Hyderabad State should be automatically integrated into the services of the Andhra Pradesh without any process of screening. Should, however, any retrenchment be found necessary, the entire personnel of the services of the enlarged State will be treated on an equal footing. E. Distribution of expenditure between Telangana and Andhra Region Allocation of expenditure with the resources of the State is a matter which falls within the purview of the State Government and State Legislature. Since, however, it has been agreed between the representatives of Andhra and Telangana that the expenditure of the new State on central and general administration should be borne proportionately by the two regions and the balance of income from Telangana should be reserved for expenditure on the development of Telangana area. It is open to the state Government to act in accordance with the terms of this agreement in making budgetary allocations. The Government of India proposes to invite the attention of the Chief Minister of Andhra to this particular understanding and to express the hope that it would be implemented. In the book by K.V. Ranga Reddy, while reproducing the Gentlemen.s Agreement and the constitution of the Regional Committee, the following is also mentioned:- Note: Items 2, 3, 7, 8, 10, 11 are included in Andhra Pradesh Regional Committee order 1958 First Schedule. Item 4 is included in section 115-116 of States Re-organization Act, 1956. Item 9 is included in Article 371 of the Constitution of India. Safeguards Item 2 to 7 are included in Andhra Pradesh Regional Committee order 1958 First Schedule. Item 6 is included in Domicile rules of State Govt. and Regional committee order 1958 First Schedule. The remaining items are treated as terms of “Gentlemen.s Agreement”. 1.1.12 This path breaking Agreement was signed with the intention that the same would pave the way for good and equitable governance of both the regions in the unified state. However, as future events would tell, nonimplementation of some provisions of the Agreement, once again, led to the agitations demanding the division of the state. As can be seen from the text in sub-para 1.1.11 above, the Gentlemen.s Agreement, consisting of 14 items, covered constitution and functions of a statutory Regional Council and various matters in respect of Telangana, like services, development, sale of agricultural lands, the position of Urdu, appropriate political arrangement for CM/Dy. CM and representation in the ministry etc. Besides, there was no mention of a Regional Committee. However, the Regional Committee of the Assembly was constituted as per Article 371 (1) of the Constitution, to provide support for the implementation of certain elements of the Agreement. This was one of the major reasons for the early discontent in Telangana. 1.1.13 Two other points were discussed subsequently and understanding was arrived at. In the draft Bill of the States Reorganization Act, the name of the unified state was captioned as “Andhra-Telangana”. However, keeping in view the point raised by Andhra leaders that, the name would underline the differences between the two regions, the Joint Select Committee which went into the provisions of the draft Bill amended the name as “Andhra Pradesh”. There was another point of difference over the location of Bench at Guntur where the High Court was functioning. This was met with the provision of section 51(2) in the States Reorganization Act, which provided for the establishment of a permanent bench or benches of the High Court at one or more places within the state, other than the principal seat of the High Court and for any matter connected therewith. 1.1.14 The Government of India, prepared a Note on Safeguards proposed for the Telangana area and placed it on the table of Lok Sabha on August 10, 1956. By the Constitution (Seventh Amendment) Act, 1956, the provision under Article 371, for temporary supervision of the Union Government over the states in Part B of the Constitution, was substituted to create, by order, Regional Committees of the Assembly in Andhra Pradesh (and Punjab) and Development Boards for the different regions in the then Bombay state, by special provisions with respect to the states of Andhra Pradesh, Punjab and Bombay. The new Article 371, inter-alia, empowered the President to create, by order, Regional Committees of the Assembly in Andhra Pradesh. 1.1.15 Thus came into being the state of Andhra Pradesh. The Prime Minister, Pt. Jawaharlal Nehru, inaugurated the new state on November 1, 1956. 1.2 Andhra Pradesh (1956- 1973) 1.2.01 Although Andhra Pradesh constitutionally became a geographically unified state, in many respects it continued to function as a political mix of two entities, namely, the Andhra and the Telangana regions. However, in socioeconomic comparisons, given the historical background, it was considered as a mix of three distinct regions i.e. coastal Andhra, Rayalaseema and Telangana. 1.2.02 Looking back, it can be said that, the identification of Andhra Pradesh as a political mix of two entities caused and resulted in more discomfiture than advantage as events continued to evolve. As discussed elsewhere in the Report, the economic and political life of Andhra Pradesh in its fifty four years of existence has shown different kinds of turbulence at various points of time. During the first two decades itself, the state was rocked by two major movements; one in 1969, popularly known as “Jai Telangana” and the other in 1972, popularly known as “Jai Andhra”. While the former was concentrated in Telangana region and the latter in Andhra region, the impact of the two was felt generally all over the state. A detailed account of these two agitations has been given later in this paragraph. During this period, the effectiveness of the implementation of the “Gentlemen.s Agreement”, made at the time of the formation of the state, was also put to a test. There was criticism that though the implementation of the Agreement cast some shades of illumination, but at the same time, had many patches of darkness. Of the fourteen points included in the Agreement, there were mainly three items which, were considered to be of immense political and socio-economic importance and generally the focus was on these three areas only. These items were (i) the political issues relating to representation of Telangana in the power sharing structure; (ii) the socioeconomic issues relating to the utilization of revenue surpluses/apportioning of budget for the Telangana region and (iii) proper sharing of employment and educational opportunities in the state. It may be worthwhile to mention here that, the implementation of the Agreement itself started on a discordant note. The political space in the institution of Deputy Chief Minister (or Chief Minister) for the Telangana region was denied by the signatory to the Gentlemen.s Agreement and the Chief Minister from Andhra area, Neelam Sanjeeva Reddy (who became the first Chief Minister of the united Andhra Pradesh) in the very first Ministry in 1956 by reportedly calling it an ”unwanted sixth finger of the hand”.12 This issue was to become a major sore point for Telanganites for all times to come. With the passage of time, in later years, other issues such as the sharing of waters and irrigation resources, land management etc., also became quite contentious. Forced by the events caused by the discord that had been created, in the second ministry which was formed on January 11, 1960, with D. Sanjeevaiah as Chief Minister, this imbalance was rectified and Shri K.V. Ranga Reddy from Telangana was appointed as Deputy Chief Minister. This arrangement continued only for two years, whereafter, when Neelam Sanjeeva Reddy came back as Chief Minister, he again dispensed with the appointment of Deputy Chief 12 Rao, P.R., History and Culture of Andhra Pradesh: From the Earliest Times to 1991, p 324 Minister. The arrangement of Chief Minister/Dy. Chief Minister got restored only after the 1969 “Jai Telangana” agitation. 1.2.03 The States Reorganization Act, 1956, and the seventh Amendment to the Constitution of India, 1956, in the form of Article 371, took into account the Gentlemen.s Agreement and included, besides the Constitution of the new state, the important provision regarding the Constitution of the Regional Committee. The relevant provisions of the SRC and Article 371 respectively are: (i) Andhra Pradesh…..The territories specified in subsection (1) of section 3 of the Andhra State Act, 1953 and the territories Specified in sub-section (1) of section 3 of the State Reorganization Act, 1956. (ii) Substitution of a new Article for Article 371- For Article 371 of the Constitution the following Article was substituted, namely:- 371. Special Provisions with respect to the states of Andhra Pradesh, Punjab and Bombay:-(1)Notwithstanding anything in this Constitution, the president may, by order made with respect to the State of Andhra Pradesh or Punjab, provide for the Constitution and functions of the Regional Committees of the Legislative Assembly of the State, for the modification to be made in the rules of business of the Government and in the Rules of procedure of the Legislative Assembly of the State and for any special responsibility of the Governor in order to secure the proper functioning of the Regional committee. 1.2.04 Thus, a Regional Committee of the Legislative Assembly of the state got constituted in 1958. The Regional Committee of the Assembly was believed to have been fashioned after the Scottish Standing Committee of the British House of Commons with intentions of safeguarding the regional interests. It had been tried earlier in Punjab (1957-66) to keep together the Hindi-speaking areas having majority of Hindus and Punjabi-speaking areas inhabited by Sikhs under one administration. Prime Minister Jawaharlal Nehru stated in Parliament that the settlement with the Akali Dal and consequent establishment of the Regional Committee in Punjab had a relevant precedent in the “Scottish Convention” of the British Parliament and that the scheme was modeled on the practice obtaining in the United Kingdom13. However, as decided in the Gentlemen.s Agreement, 1956, the statutory Regional Council which was to look after the political space, the implementation of development and other related issues was not constituted. This has been noted in sub-para 1.1.12 also. 1.2.05 Following the formation of the unified Andhra Pradesh state, elections to the Assembly from the Telangana Constituencies were held in 1957. Since Assembly elections had been held for the erstwhile Andhra Legislature in 1955, before the merger of Telangana region with Andhra, the Assembly membership for that portion of the Legislature was allowed to continue. 13 Kapur, A.C. 1959 Government of Indian Republic, in, KVN Rao, State Government and Politics: Andhra Padesh, p 115 1.2.06 In pursuance of the decisions of the Central Government, as given in Para 1.2.04, and in exercise of the powers conferred by clause (i) of Article 371 of the Constitution, the “Andhra Pradesh Regional Committee Order, 1958” was issued by the Union Ministry of Home Affairs on first February 1958. Copy of the Gazette notification is at Appendix 1.5. The Andhra Pradesh Government, in its Gazette notification dated March 13, 1958, reproduced the said notification to the Government of India for constitution of the Andhra Pradesh Regional Committee along with the modifications that to be made in the Andhra Pradesh Legislative Assembly Rules. Copy of the Gazette Notification of the Andhra Pradesh Government is at Appendix 1.6. Later events would tell that the “Regional Committee” could only play a limited role, at least till 1969. It is generally contended that, providing the agreed political space to the leaders from Telangana and the establishment of the statutory Regional Council as an implementation body, as enshrined in the Gentlemen.s Agreement, would have made a substantial difference in the historical growth of the integrated state, besides economic development of Telangana region. Most delegations from Telangana region, which appeared before the Committee, raised these issues adding that this was the beginning of the mistrust between the two regions. 1.2.07 The Schedule matters that the Committee could deal with were spelt out in the first schedule of the Order of the Union Ministry of Home Affairs. These were: (i) Local self Government that is to say, the Constitutional powers of Municipal Corporations, Improvement Trust, District Boards and other district Authorities for the purpose of Local Self Government or village Administration; (ii) Public Health and Sanitation; Local Hospitals and Dispensaries; (iii) Primary and Secondary Education; (iv) Regulation and Admissions to educational Institutions in the Telengana region; (v) Prohibition; (vi) Sale of Agriculture Lands; (vii) Cottage and Small scale Industries; (viii) Agriculture, Cooperative Societies, Markets and Fairs; (ix) Development and Economic Planning within the framework of general development Plans and Policies formulated by the State legislature. 1.2.08 For the purposes of comparison with the matters identified for the Regional Committee, it would be seen that the following subjects were not included in a modified form in the Government Order. (i) The important areas of “services in the Government” and “employment opportunities” were not included; (ii) “Development and planning” was restricted to matters not involving any financial commitment by introducing the words “is in conformity with the overall financial arrangement contemplated in the Budget„.” Besides, there was a strong demand from Telangana for adding higher education in the list of subjects included in the schedule, as it was related to the implementation of Mulki Rules. These omissions also added to the discontent already being harboured by the people of Telangana region. 1.2.09 An agitation that began in December, 1968, initially based on discontent in service and employment matters and further covering financial matters called “Telengana revenue surpluses”, quickly spread like wild fire all over Telangana area with devastating effect. The agitation, the details of which will be covered in the later portion of this para, spanned nearly a year and ended in late 1969, came to be known as “Jai Telangana agitation”. During the height and course of this agitation, Prime Minister Smt. Indira Gandhi made a statement in the Lok Sabha on April 11, 1969, dealing with various issues which had resulted in the violent agitation. In this statement, the lack of understanding between the Government and the Telengana Regional Committee, TRC (as by then it was popularly called) in matters including what was then called “the Telengana surpluses”, was, inter alia, dealt with. The Prime Minister, in her statement, also stated “The overall aim is to ensure that the pace of development and the expansion of employment opportunities in Telengana is accelerated and conditions are created for the balanced development of all parts of Andhra Pradesh.” It was also announced in this statement that, in pursuance of this aim, the Central Government would appoint a Committee with a sitting or retired Supreme Court Judge as Chairman and an eminent economist with knowledge of state finances, together with a senior representative of the Comptroller and Auditor General as members to go into the varying estimates and representations and determining the surpluses relatable to Telangana, which were expected to have been spent on the development in the Telangana region. Accordingly, a Committee was appointed with Justice Vashisht Bhargava, Judge of the Supreme Court, as Chairman and with Prof. M.V.Mathur, Director of Asian Institute of Educational Planning and Administration, and Haribhushan Bhan, Addl. Dy. Comptroller and Auditor General, as members on April 22, 1969. The Committee was expected to give its report by end of May, 1969, but its time was extended up to October 1969. In addition, to allay the fears of/instill confidence in the people of Telangana with a series of measures intended to ensure the development of Telangana, it was, inter alia felt necessary, based also on the experience of the working of the TRC during 1958-68, to widen the subject which the TRC could discuss and of the powers of this Committee in respect thereof. Toward this end, on August 21, 1969, the TRC adopted the recommendations made by a Committee of the Assembly on a motion moved by J. Vengala Rao, then Minister for Home in the Andhra Pradesh Government. In this motion, the Committee suggested, among other matters, that the Presidential Order, 1958, regarding the Regional Committee (TRC) should be suitably amended to bring in matters relating to principles and methods of recruitment for securing equitable and adequate opportunities for employment in Government and Quasi Government services for the people of Telangana region; matters relating to equation of posts and integration of services of the employees of the former Government of Andhra and Hyderabad; the Annual Financial Statement insofar as it related to receipts and expenditure for Telangana Region; and Development and Economic Planning within the approved allocation for the Telangana Region.14 The Central Government on February 18, 1970, announced a series of measures, which inter-alia, included, (i) widening of the subjects of the Telangana Regional Committee (TRC) and (ii) enlarging the powers of the Regional Committee in respect thereof. Accordingly, a Presidential Order was issued on March 7, 1970 under Article 371 amending the original order of 1958. (Copy of the Order placed at Appendix 1.7). The following subjects were added to the first schedule of the original Order (1958) 14 Vithal, B.P.R. 2010 A State in Periodic Crises-Andhra Pradesh, CESS Monograph 11, Centre for Economic and Social Studies, Hyderabad . “Methods of recruitment and principles to be followed in making the appointments to subordinate services and posts ( that is to say, services and posts appointments to which are not notified in the Official Gazette but including any service of Tahsildars) under the State Government in Telangana region).” . “Securing provision of adequate employment opportunities to the people of the Telangana region in the State Government, Quasi Government Institutions, statutory authorities and corporate bodies in the Telangana region.” The scope of some of the subjects falling within the purview of the Regional Committee, as per the earlier order was enlarged to also include: . University education in addition to the existing primary and secondary education; . Medium and Heavy industry in addition to the existing small scale industries. The following item was substituted under item (9) of the first schedule i.e., matters insofar as they related to Telangana which came within the purview of the Regional Committee; viz: . “Development and economic planning within the plan allocation for the Telangana Region as formulated by the State Legislature”; The order also provided: . “in the annual financial statement details regarding the receipts and expenditure in relation to the Telangana region and rest of the State (RoS) shall be shown in separate columns for facility of reference and consideration by the regional Committee”; The order also: . modified the earlier rule which has restricted the Regional Committee to matters not involving any financial commitment by introducing the words “is in conformity with the overall financial arrangement contemplated in the annual Budget or in the Five Year Plan pertaining to the Telangana Region” ; In addition: . The Government was to furnish periodic progress reports to the Regional Committee which would submit its views to the Assembly; It was also provided that: . if the state Government was unable to accept any recommendation of the Regional Committee, the Chief Minister would first endeavour to arrive at an agreement by discussion with the Chairman of the Regional Committee and the matter would then be referred to the Governor, if no such agreement was found possible. The decision of the Governor shall be final and binding on the Council (in this case committee) and action shall be taken accordingly. 1.2.10 For constitution and proper functioning of the Regional Committee, the Central Government also retained its initiative through the institution of the Governor. The Governor draws and retains his responsibility in respect of Regional Committee (TRC) under Article 371(1). The relevant portion of the Article [Article 371(1)] reads: “Notwithstanding anything in this Constitution, the President may, by order made with respect to the State of Andhra Pradesh or Punjab, provide for the Constitution and functions of regional committees of the Legislative Assembly of the State, for the modifications to be made in the rules of business of the Government and in the rules of procedure of the Legislative Assembly of the State and for any special responsibility of the Governor in order to secure the proper functioning of the regional committees.” Accordingly, the Governor would make an annual Report to the President so as to keep the Central Government informed about the working of the Regional Committee. 1.2.11 In short, the Regional Committee was formed in 1958, to have a sort of legislative advisory role over the executive; albeit, it was restricted to Telangana related development issues. Its professional role lay in assisting the Government adhering to the principle of equitable distribution of the resources and socio-economic opportunities within the state with particular reference to adequately safeguarding the interests of the Telangana region within the scope of the understanding arrived at in the Gentlemen.s agreement. The issues it was to address and has been addressing during its existence were similar to those that the Estimates Committee or the Public accounts Committee would raise.15 Some professionals connected with state administration and TRC held the view that (i) During the years it was in existence, it was exercising effective and meaningful control over public expenditure, in respect of items that fell within its purview by virtue of the statutory provisions (ii) The issues raised by the Committee may have had a political background, but the Regional Committee was professional in its analysis and presentation. Some other political scientists and academics who were conversant with the working of the TRC and of the time opined differently. Shri K.V.N.Rao, in his book “State Government and Politics – Andhra Pradesh”, mentioned that “the Regional Committee during the decade 1955-68 was quite active in its deliberation and assertive in getting safeguards relating to the schedules implemented. The fact that the Congress ruled the State and had a majority in the Regional Committee did not make the office bearers of the Regional Committee and its sub-Committees to play a passive role. In the discussions of the Regional Committee, party differences never mattered and all of them were unanimous in presenting the demands of Telengana or pointing out the lapses of the Government.” 15 Vithal, B.P.R. 2010 A State in Periodic Crises-Andhra Pradesh, CESS Monograph 11, Centre for Economic and Social Studies, Hyderabad, p 44 16 Reddy, Narsimha , 1979, in, Ramireddy, G. et al (ed.) State Government and Politics: Andhra Pradesh, New Delhi, Sterling Publishers Private Limited, p 237 17 Acharya, K.R. 1979, in, Ramireddy, G et al (ed.), State Government and Politics:Andhra Pradesh, New Delhi, Sterling Publishers Private Limited, p 510 A. Narsimha Reddy16, in his article “Congress Parties and Politics”, opined “The Regional Committee consisting of Telengana MLA.s nourished grievances against the administration only after his assuming the chairmanship. Until 1968 the Regional Committee was inactive and later it emerged as an important force. It provided all the material pertaining to the imbalance in development, employment and educational opportunities in Telengana region. It created a hue and cry in regard to Telengana surpluses. And above all, it lent the legitimacy to the Telengana agitation in the form of regional imbalances.” K. R. Acharya17, in his article on “Telengana and Andhra agitation” mentioned that: “It was generally held that the Telengana Regional Committee was not vigilant enough to protect the interests of the region. It was further alleged that neglect of the region was due to the attitude of its chairman, who raised the bogey of grievances when the political situation did not suit him and shelving it when it was otherwise. The position and powers of the Regional Committee were responsible for its ineffective functioning. All the legitimate grievances of the region could have been met by enlarging the powers of the Regional Committee by including planning and other subjects. The demand was, however, accepted after a great deal of persuasion by the Central government and the powers of the Regional Committee were enlarged by the Presidential Order of 1970, which also included some additional items in the first schedule of the principal order of 1958. 1.2.12 Given the totality of the situation, it can be said that, in the 1958- 68 dispensation, the scope and area that the Committee was called upon to address was limited in many respects. For example, in the socio-economic aspects, which were of primary importance to the development in the Telangana region, the TRC had virtually very little to contribute. Service matters were not included in its schedule. It had a restricted role in the area of education; devoid of college and technical education; equally restricted in the area of heavy industry. Needless to mention, that college and technical education and heavy industry, having inbuilt scope for employment and development, are expected to contribute substantially to development. Looking on the positive side, the TRC, particularly after the widening of its scope, provided a legal base and source for working out the Telangana surpluses and independent budget entries for the coastal Andhra and Telangana regions. Differences in the technical approaches in working out the Telangana surpluses led to the constitution of the Bhargava Committee about which a mention was made earlier. The Bhargava Committee, constituted after the agitation of 1968-69, was primarily to identify the Telangana surpluses. Paradoxically, the 1968-69 agitation provided an opportunity for Central Government to enlarge the scope of the Regional Committee. The usefulness of TRC in the post 1969 dispensation and in the post Bhargava Committee dispensation was in the realization of the need for apportioning minimum shares in plan allocation for the backward areas and separate allocation for the Telangana area which was applied in the Fourth Five Year Plan (1969-74) allocation for Andhra Pradesh. 1.2.13 In a nutshell, therefore, professional opinion was that the TRC could have been strengthened further in the post 1970 period. As events led to the formulation of the Six Point Formula, the TRC became redundant and was finally abolished in 1973. However, as discussed in the following Para, the Six- Point Formula tried to address comprehensively the development of backward areas in the entire Andhra Pradesh, involving all the three regions. 1.2.14 The SRC, in its report, had expressed its apprehensions that the educationally backward Telangana may be swamped and exploited by the more advanced people of the coastal area (Para 378, SRC). To allay this fear, the Gentlemen.s Agreement had provided for an assurance that a temporary provision would be made to ensure that for a period of five years Telangana was safeguarded as a Unit, as far as the recruitment to subordinate services in the region was concerned and the posts borne on the cadre of these services may be reserved for being filled by persons who satisfied the domicile conditions as prescribed under the existing Hyderabad rules (after the advent of the Constitution, under Article 35(b), these rules had restricted relevance, both in time and in content). All the privileges everywhere in the country were abolished by the Public Employment (Requirement as to Residence) Act, 1957. However, such restrictions in the Telangana region (in Andhra Pradesh) were saved along with such restrictions. This was done to give effect to the specific assurances given in the Gentlemen.s agreement. 1.2.15 The Government of India, in pursuance of Article 16(3), enacted the Public Employment (Requirement as to Residence) Act in 1957. It repealed all laws in force in any state or Union Territory by virtue of Article 35(B) prescribing in regard to a class or classes of employment or appointment to an office under the Government or any local or other authority within the state or Union Territory any requirement as to residence therein prior to such employment or appointment. But in view of the special circumstances in the Telangana region of Andhra Pradesh, Himachal Pradesh, Manipur, and Tripura, the Act empowered the Central Government to make rules prescribing in regard to appointments to certain specified services in the above areas, any requirement as to residence within the respective areas prior to such appointment. In exercise of the powers conferred by clauses (a) and (c) of sub-section (1) of Section (3) of the Act, the Central Government made the Andhra Pradesh Public Employment (Requirement as to Residence) Rules, 1959. The rules required that specified categories of employment in Telangana area should be filled up only by persons who had been residents of Telangana area for not less than 15 years. 1.2.16 It may be noted that Mulki Rules, which required that superior or inferior services in the erstwhile Hyderabad Government should be filled up by Mulkis i.e., domiciles of Telangana fulfilling certain conditions, were in force till their repeal by the Public Employment (Requirement as to Residence) Act 1957. 1.2.17 The Regional Committee brought it to the notice of the Government repeatedly that the provisions of the Andhra Pradesh Public Employment (Requirement as to Residence) Rules, 1959, were not being implemented honestly and that non-Mulkis were being appointed to posts intended for Telangana Mulkis. It pleaded for the extension of the Public Employment (Requirement as to Residence) Act, 1957 by 5 years in 1964, and again in 1969. It also discussed the question of promotions and proper preparation of integrated seniority lists of the Andhra and Telangana employees. In a number of cases, the Government took whatever action was possible. 1.2.18 The influx of the people from coastal Andhra into the city of Hyderabad in the formative years, after the formation of Andhra Pradesh in 1956, had created its own social tensions. Slowly, the discontent spread to the government officials and unemployed youth, who got the feeling that they were neglected and exploited by the domineering officials of the coastal Andhra region and, particularly, the more enterprising people from the coastal Andhra area. One of the main causes of dissatisfaction of the people of Telangana was that a large number of persons from coastal Andhra region were appointed to the posts belonging to them on the ground that qualified personnel from Telangana were not available. It is another matter that in the interests of imparting quality governance, qualified people from Bombay state, Mysore state, and, limitedly, from other neighbouring states were also brought in to fill in the quality gaps in the civil and judicial administration. To an extent, such steps were resorted to even in the law and order administration. The fact that Urdu was the language of administration and the judiciary in the erstwhile Hyderabad State under the Nizam as opposed to English, which was used in coastal Andhra, as part of Madras Presidency, did not help things either and was taken as one of the reasons for such employment needs to provide better governance. In order to draw the attention of the Government to their grievances, the people of Telangana began to organize protest meetings and observed Telangana Safeguards Day on July 10, 1968. 1.2.19 An agitation began in Telangana in January, 1969, as a consequence of a High Court judgment holding that the Andhra Pradesh State Electricity Board did not come under the purview of the Public Employment (Requirement as to Residence) Act, 1957. It is reported that the agitation and discontent of the people at large manifested itself when a student in Khammam went on a hunger strike in January, 1969. By the middle of January, the agitation gained momentum and spread to other districts and students also got involved in the movement. While one section of the students demanded full implementation of “safeguards”, the other section demanded bifurcation of the state. The non-gazetted officers from Telangana joined the movement with the demand for the immediate repatriation to coastal Andhra region, of about six thousand coastal Andhra employees occupying the Telangana posts. The agitation took a violent turn in certain areas. The state government immediately responded by convening a meeting of the all party political leaders of the state on January 18-19, 1969. The two important issues agitating the Telangana people, namely, the repatriation of coastal Andhra officials from Telangana and the quantum of surplus revenue of Telangana, were discussed. It was announced that the quantum of Telangana surpluses would be decided by a senior officer appointed for the purpose and the coastal Andhra officials would be repatriated by providing jobs in the coastal Andhra area. Unfortunately, the police firing on the agitating students on January 20, 1969, further provoked the students, leaving the proposed government action decided in the all party meeting and the appeal for peace in limbo. On January 22, the agitation became violent all across Telangana, resulting in heavy damage to public property. The agitation spanning nearly for a year from December, 1968, to November, 1969, resulted in colossal damage to public and private property, loss of precious life and injury to several people across the districts. Appropriate police action was taken to control the law and order situation. Estimates varied on the extent of damage and loss of life. In order to diffuse the situation, in the initial stages itself, the Government issued a Government Order (G.O.) assuring to remove/move all non mulki officials from their current positions and set a dead line for the same as February 28, 1969. The state government also announced that it was extending the Mulki Rules to the Andhra Pradesh Electricity Board as it was funded by the state. It was also announced that the Comptroller and Auditor General of India had agreed to depute a senior executive to determine the Telangana surpluses. On the announcement of these decisions, particularly the one pertaining to repatriation of employees of coastal Andhra/Rayalaseema from Telangana region, violence erupted in coastal Andhra and Rayalaseema regions. During this period, Telangana Students Action committee called upon the students of Telangana to abstain from classes till a separate state was formed. K.V.Ranga Reddy, former Deputy Chief Minister, joined the students, stating that without separate statehood, the injustice to Telangana cannot be rectified and prevented. While the situation was taking a turn for the worse, the Supreme Court granted an injunction on the state Government.s announcement of “Non-Mulki employee repatriation by February 28, 1969”. Subsequently, the order was declared by the Supreme Court to be ultra-vires of the Constitution. This led to the intensification of the agitation for a separate statehood. 1.2.20 The Prime Minister, Smt. Indira Gandhi, who was closely watching the situation, announced in the Lok Sabha on April 11, 1969, an Eight-Point Plan to resolve the problem. The plan envisaged among others addressing all the contentious issues. The Eight-Point plan did not find favour with the dissident Congress leaders and non-Congress parties of Telangana region. The student agitation, as a result, passed in to the hands of the politicians demanding separate statehood, who formed themselves into what was called the “Telengana Praja Samithi”. The Samithi, thereafter, began to organize a planned agitation. The Government became tough with the agitating political leaders, while the agitation continued till November when there was a split in the Praja Samithi and slowly with the passage of time, normalcy returned to state. 1.2.21 The positive outcomes of the 1969 Jai Telangana agitation were (i) the Government strengthened the Telangana Regional Committee, (ii) the action on rational accounting of Telangana revenue surpluses, (iii) opening of more educational institutions in the Telangana area, and (iv) special subsidies to industries in six Telangana districts and two Rayalaseema districts. On the political side, P.V. Narasimha Rao became the Chief Minister of Andhra Pradesh in September 1971, as the first Telanganite to assume the coveted office. 1.2.22 After the trifurcation of Hyderabad state in 1956, the Mulki rules continued to be in force in the Telangana region. As a result, the people of coastal Andhra region found it difficult to enter into government services in the Telangana region - (focus on Hyderabad where the Mulki Rules were operative). They nurtured a feeling that they faced discrimination in their own state and that too in their own state capital. As a consequence, some of the coastal Andhra employees challenged the validity of the Mulki Rules in the Andhra Pradesh High Court. On February 14, 1972, a full bench of the five judges, with a 4-1 majority, held that the Mulki Rules were not valid and operative after the formation of Andhra Pradesh state (in 1919 the Nizam of Hyderabad had issued a “Firman” laying down that only “Mulkis” are eligible for public appointment in the state). The High Court Judgment stirred the Andhra Pradesh Government and was a rude shock to the Telanganites as they were always insisting on enforcement of the Mulki Rules. The government preferred an appeal in the Supreme Court against the ruling of the Andhra Pradesh High Court. Further, the government also announced that it would go ahead with the regionalization of services and take the required steps in order to safeguard the interests of Telanganites in the matter of employment. On October 3, 1972, the Supreme Court gave its verdict reversing the A.P High Court decision and holding that Mulki Rules were valid and were in force. This judgment stirred the people in coastal Andhra region who felt that they were reduced to the status of second class citizens in their own state capital. Ostensibly, to safeguard their dignity, they preferred to sever their connection with Telanganites. This led to the “Jai-Andhra agitation”. 1.2.23 The AP Government announced its decision to implement the Mulki Rules. The Government of India, realizing the intensity of the feelings of the people in both the regions on the issue of Mulki Rules, tried to arrive at a balance, and in the process, agreed to allow the Mulki Rules in the twin cities upto 1977 and in the rest of the Telangana until the end of 1980. A Bill was introduced in the Parliament to that effect which was passed on December 31, 1972. Intervening in the discussion, the then Prime Minister, Smt. Indira Gandhi, said: “We should consider the feeling of the people but it would be very wrong to be swept away by feelings. We must see what is in the larger interest of the people themselves.” -------- “There is an overall rationality in the formation of our various States and we should be very careful not to break this foundation of rationality in momentary passions.” -------- “The government must think in a very calm manner about the interest of the people of that very region and see what will serve their interest best.” ------ Copy of the Address of the Prime Minister is at Appendix 1.8. 1.2.24 The people of coastal Andhra region were taken aback by the passage of the Bill as they wanted nothing short of immediate abolition of the Mulki Rules. The Congressmen from the coastal Andhra area met on December 31, 1972, at the Tirupati Convention which was attended by a large number of the Congressmen from the Assembly and council and chairmen and presidents of the Zilla Parishads. The Convention was presided over by B.V. Subba Reddy, who was till then the Deputy Chief Minister and had resigned before the convention. At this convention, a call was given to people to “Paralayse the State Administration.” by refusing to pay taxes and by defying the prohibitory orders. The Jai Andhra agitation spread like a wild fire and, did, in fact, succeed in paralysing the administration. It continued for more than two months, resulting in damage to public and private property, loss of human life and injury to several people across the districts. Taking all these aspects into consideration, including the intensity of the agitation, President.s Rule was imposed in the state in January, 1973. On March 18, 1973, the Andhra leaders met at Chittoor, in Rayalaseema region, to resolve the issue but the meeting did not yield much of a result. 1.2.25 In the meanwhile, another twist came in respect of the definition of Mulki Rules. The Andhra Pradesh High Court on February 16, 1973, declared that people from outside who came to Telangana and settled there could also be Mulkis and not only those who were born and brought up in Telangana. As a result of this decision, the Telangana people claimed that they lost the benefit of the Mulki Rule. In another development , on July 11, 1973, the Andhra Pradesh High Court gave another verdict that Mulki Rules would apply to initial recruitment and nor for subsequent stages of promotion, seniority, reversion, retrenchment or ousting from service, whether temporary or permanent. As a result of these developments, and gradual loss of public support, Congressmen from both sides realized the futility of their demand for bifurcation. They wanted a face saving formula to put an end to their agitational approaches. 1.2.26 Prime Minister Smt. Indira Gandhi again intervened, and after a series of discussion with leaders of both the regions, evolved a consensus through the “Six Point Formula”. The Six point formula, in a way, tried to address comprehensively the elements of the “Gentlemen.s Agreement” and find enduring answers to the problems, and at the same time endeavour to achieve “emotional integration” of the people of Andhra Pradesh. The effective implementation of the Six Point Formula was required to be backed by the Constitutional Amendment which was enabled by the Thirty-Second Amendment in 1973. The statement of Objects and Reasons of the Constitution (Thirty- Second) Amendment Act, 1973, clearly mentioned why such legislation was needed and hence the same is reproduced below: “When the State of Andhra Pradesh was formed in 1956, certain safeguards were envisaged for the Telangana Area in the matter of development and also in the matter of employment opportunities and educational facilities for the residents of that area. The provision of Clause (1) of Article 371 of the Constitution were intended to give effect to certain features of these safeguards. The Public Employment (Requirement as to Residence) Act, 1957, was enacted, inter-alia, to provide for employment opportunities for residents of Telangana area. But in 1969,the Supreme Court held the relevant provision of the Act to be unconstitutional in so far as it related to the safeguards envisaged for the Telengana Area. Owing to a variety of causes, the working of the safeguards gave rise to a certain amount of dissatisfaction sometimes in the Telengana Area and sometimes in the other areas of the State. Measures were devised from time to time to solve the problems. Recently several leaders of Andhra Pradesh made a concerted effort to analyse the factors which have been giving rise to the dissatisfaction and find enduring answers to the problem with a view to achieving fuller emotional integration of the people of Andhra Pradesh. On the September 21, 1973, they suggested measures (generally known as the Six-Point Formula) indicating a uniform approach for promoting accelerated development of the backward areas of the State so as to secure the balanced development of the State as a whole and for providing equitable opportunities to different areas of the State in the matter of education, employment and career prospects in public services….”. The Thirty-Second Amendment Act omits clause(1) of Article 371and makes special provision with respect to the State of Andhra Pradesh by inserting new clause 371-D (Appendix1.9). 1.2.27 As a result of the events described above, the Mulki Rules were repealed in 1973 by the Mulki Rules Repeal Act and the Six Point Formula (SPF) (see Appendix 1.10) was announced on 21st September, 1973 and 22nd October, 1973, highlighting the following:- (1) Constitution of a Planning Board at the state Level as well as Sub-Committees for different backward areas. (2) Preference to local candidates in the matter of admission to educational institutions and establishment of a new Central University at Hyderabad. (3) Preference to specified extent to local candidates in the matter of direct recruitment and organization of local cadres. (4) Constitution of Administrative Tribunal. (5) Amending Constitution suitably for the above purpose. (6) The above approach would render the continuance of Mulki Rules and Regional Committee unnecessary. Among other things, a major effect of the Six Point Formula was that it resulted in the abolition of the Telangana Regional Committee and setting up of a state Planning and Development Board and separate Planning and Development Committees for the three regions of the state. The States Reorganization Act, in the meanwhile, had already provided for location of Benches of the High Court, in other parts of the state as and when required. 1.3 Andhra Pradesh (1973 – 2000) 1.3.01 The Six point Formula (SPF) was incorporated in the form of special provisions with respect to the state of Andhra Pradesh in the Constitution (Article 371-D) and a Presidential Order was issued through G.O. Ms. No 674 on February 20, 1975, to mark the beginning of the implementation of the Formula. Copy of the Presidential Order is at Appendix 1.11. The interregnum between September, 1973, when the formula was evolved, and February, 1975, when the same was put to implementation, witnessed two important milestones; one was the abolition of the Mulki Rules on December 31, 1973, through the Mulki Rules Repeal Act, 1973, which received President.s assent on December 31, 1973, and the other was the abolition of the Telangana Regional Committee from January 1, 1974, under a Presidential Order issued on December 10, 1973. This was in consonance with the sixth provision in the SPF which reads “The above approach would render the continuation of Mulki Rules and (the) Regional Committee unnecessary”. It may be relevant to mention here that the Constitutional (Thirty Second) Amendment Bill, which was passed by the Lok Sabha on December 18, 1973, to give effect to the SPF received an overwhelming assent as the voting was 311 for and 8 against.18 Such a huge mandate encouraged the Union Government to revoke the President.s Rule, which had been imposed on January 18, 1973, in December 1973. Prime Minister Smt. Indira Gandhi, who was the architect of the SPF, while ensuring consensus on the formula, also balanced the same with enduring political space for the Telangana leadership. As it turned out during 1973-1982, the popular Governments were headed by Telangana leadership. It started with a stable government with a well respected Telangana leader J. Vengala Rao as Chief Minister, after the lifting of the President.s Rule. This government lasted up to the next Assembly elections that were held in February, 1978. During this period, economic activity picked up with good progress on agricultural and industrial fronts. The growth momentum of this period, by and large, continued till the recent agitations (2009-10). A comprehensive account of the economic growth of the state, including region-wise details, is covered in the succeeding Chapter. Incidentally, in the post emergency Lok Sabha elections (1977), although the Congress Party led by Smt. Indira Gandhi lost in almost all the north Indian states, in Andhra Pradesh, it won 41 out of 42 Lok Sabha seats. In the Assembly elections held in February, 1978, the Congress party led by Smt. Indira Gandhi, although not in power at the Centre (the Janata Party including the breakaway faction of the Congress had come to power at the Centre in March 18 Source: Lok Sabha Proceedings of 1973. 1977, with Morarji Desai, a veteran Congress leader as Prime Minister), and had got further split a month before the state Assembly elections, still swept the polls. In a way, the results of the 1978 Assembly elections in the state seemed to have endorsed the policy of Smt. Indira Gandhi for a unified Andhra Pradesh. In keeping with her approach of giving appropriate political space to Telangana, Dr. M. Chenna Reddy, earlier a well known protagonist of separate Telangana, became the Chief Minister on March 6, 1978, and reportedly announced that “separate Telangana is no longer an issue”.19 It is another matter that, since 1982, no leader from Telangana took reins of Andhra Pradesh as Chief Minister, except Dr. M. Chenna Reddy who was Chief Minister for a brief period of one year during December 1989-December 1990. The entire subject of political space has been discussed in detail subsequently in the Report, since this has been projected as one of the major issues by the Telangana delegations before the Committee. 19 Rao,P.V 1994 History and Culture of Andhra Pradesh-From the Earliest Times to 1991, in, Rao, P.R. (ed), New Delhi, Sterling Publishers Private Limited, p 330 1.3.02 The details of the SPF have been given in Para 1.2.27. The first point of the formula provided for constitution of a Planning Board at the state level and sub-Committees for different backward areas for accelerating their development. Accordingly, the state government set up Planning Board(s) for the state and also separately for coastal Andhra, Rayalaseema and Telangana regions, for this purpose. This arrangement replaced the sixteen years old Telangana Regional Committee. In the area of education, a Presidential Order, namely, “The Andhra Pradesh Educational Institutions (Regulation of Admissions) Order, 1974” was issued in July, 1974. Besides, the University of Hyderabad was established by an Act of Parliament in 1974. In spite of these positive actions, it has been represented that some areas of neglect in the provision and governance of education continued to persist in Telangana region. This aspect has been discussed at length in a subsequent Chapter. The Andhra Pradesh Administrative Tribunal order, 1975, was issued in May, 1975, to deal with the grievances of services. The Andhra Pradesh Public Employment (Organization of Local Cadres and regulation of Recruitment) Order, 1975, was issued subsequently. 1.3.03 Thus, the SPF, it was widely considered and believed, had outlined an approach consisting of a strategy for development, an education policy, a method of recruitment and a machinery for remedying the grievances in the services. The essential part of the strategy for development and growth was outlined through the accelerated development of backward areas of the state in all the three regions and planned development of the state capital with specific resources earmarked for the purpose. Appropriate involvement of representatives from backward areas in the state Legislature, along with other experts in the formulation and monitoring of development schemes for the backward areas, was ensured as part of the strategy for development. Constitution of the Planning Board(s) at the state level as well as at the regional level was considered as a primary instrument for achieving these objectives. On the flipside, certain amount of discontent on the abolition of TRC, for whatever contribution it could make, coupled with the fact that the SPF was more state-centric as compared to the Gentlemen.s Agreement, which was primarily Telangana-centric, has been voiced. The SPF, however, by and large, found its way for public acceptance and the dilemma that faced the leadership at the time of the formation of the state (in 1956) in the continuing thinking of reconfiguration of the state and retaining the identity of a separate Hyderabad/Telangana got diffused to a large extent. On the other hand, the SPF helped the growth of Telugu sub-nationalism, a culture that had been nurtured over centuries and to which attention was drawn by Smt. Indira Gandhi, Prime Minister, in a debate in the Lok Sabha on December 22, 1972, at the height of the separatist reflections. The full text of the Prime Minister.s address is given at Appendix 1.8. The Prime Minister had said: The very first Article of our Constitution declared that India is a Union of States. Each State has a long cultural and historical tradition and each state has become a political entity in its own special way. Andhra Pradesh has been a distinctive cultural unit for thousands of years……… All parts which now constitute Andhra Pradesh have been under one umbrella for long periods of history………. Perhaps it was this long history which inspired the Telugu-speaking people when they yearned and struggled for several decades to form a unified Andhra Pradesh…….. It was really the will of the Telugu-speaking people which prevailed over the proposal of some people to retain the old Hyderabad state ……… …….. …….. It is true that that the Question of linguistic states was very much a part of the national movement. There was no getting away from it. The Units of every part which was in existence at a time were formed on the basis of language………. There is an overall rationality in the formation of our various states and we should be very careful not to break this foundation of rationality in a momentary passion……. I stand firmly for an integrated State………… It does not matter how many States we have, you still will be neighbours and you still will have to deal with one another in a hundred and one things. Thinking that just because you are separated, you can get rid of these people or we have got rid of this problem is a very facile way of thinking. Our experience has not shown that this comes true. To sum up, the Six Point Formula paved the way for a reasonably enduring political stability and sustained economic growth for about three decades in the state, despite occasional voicing of Telangana sentiment and a few minor agitations here and there. 1.3.04 Formation of Andhra Pradesh was the result of a protracted struggle for the cause of Telugu sub-nationalism seeking a separate identity. It also made common cause with other linguistic and cultural regional identities so that states could have greater autonomy in the mould of a federal structure, which was perceived by these entities to be in the best interest of the governance of the country. In the post independence period, while the Indian National Congress, through its policies, focused on nationalistic spirit, there developed a political culture, gradually, across the states, highlighting regional aspirations which took the form of linguistic, cultural and ethnic sub-nationalism and resulted in the emergence of regional political parties. As noted in the Report of the second Commission on Centre-State Relations, “The year 1967 proved to be a watershed in the history of Independent India….. This was the time when certain issues of importance pertaining to Centre-State relations came into the fore both in the form of criticism of the functioning of existing mechanisms and processes as also because the regional political parties wanted to create their own niche in their respective regions……”. The subject acquired such an important dimension at that time that Dr. S. Radhakrishnan, the President, while addressing the Joint Session of Parliament on March 18, 1967, observed: “For the first time since Independence, governments of political complexions different from that of the Government at the Centre have been formed in several States. In a federal democratic polity, this is to be expected…….”20. In north India, the regional parties and regional coalitions coming to power had its advent in the mid sixties, i.e. from 1967 itself. However, in the southern and western states, with the exception of Tamil Nadu, primarily the Indian National Congress continued to have a hold over the political and governance structure almost up to the early eighties. 20 Report of the Second Commission on Centre-State Relations, Vol.I ,Evolution of Centre-State Relations in India, p. xvii 1.3.05 The gradual weakening of the leadership of the Congress Party in Andhra Pradesh, like in some other states, and the championing of Telugu subnationalist pride became the basis for the emergence of the Telugu Desam Party. The impact of the birth of Telugu Desam was that it greatly overshadowed the regional political divisions that had existed in the form of Telangana, coastal Andhra and Rayalaseema. Another important aspect of the growth of Telugu Desam Party was that, with this development, it was able to establish a veritable two party system in Andhra Pradesh within a few years of its formation in 1982. Starting from 1982 till now, Andhra Pradesh has been ruled either by Telugu Desam Party or by the Indian National Congress. The enduring leadership in the form of N.T. Rama Rao and N. Chandrababu Naidu of Telugu Desam Party and of Dr. Y.S. Rajasekhara Reddy of the Congress Party for long periods, aided by a strong political machinery for governance while at the same time continuing to champion the cause of Telugu unity, helped in keeping the demand for a separate Telangana dormant or at best in a subdued state. One of the points of view expressed before the Committee was that, with none of these powerful leaders belonging to Telangana region, the policies of the successive Governments, since 1982, were not generally in favour of equitable development of Telangana. In this context, accusations were made that, during this period, large areas of resourceful land, including wakf lands in and around Hyderabad, were acquired at much cheaper prices for and by “outsiders” (persons not belonging to Telangana region) at a great advantage to them ignoring the interest of the locals. Although the industrial and economic developmental base that was created by these “outsiders”, using these lands, contributed to general economic and industrial growth and incidental employment benefits, the higherend dividends in terms of incomes and jobs and other similar avenues in these attractive efforts were taken away again by the “outsiders”, leaving the locals with lower-end jobs and less attractive opportunities. It has been represented before the Committee that the unified state of Andhra Pradesh was maintained more through financial and political machinations than by giving equal and equitable opportunities to Telangana region and its people. All these aspects covering the political space, economic and other developmental issues including those related to land use and employment are dealt with extensively in the subsequent Chapters. 1.3.06 In the meanwhile, the economic development and urbanization of the city of Hyderabad, particularly in the aftermath of the Six Point Formula, became a contentious issue. While there was no dispute that the city had developed enormously during the post 1975 period, Telangana protagonists contended that the urban development in Hyderabad was disproportionate and skewed in favour of the needs of the migrants and sacrificed the principles of social and economic equity. It was stressed that its economic strength had declined because of the down-turn in the growth of industrial activities such as, manufacturing and trade, which bring in money, capital and sustained employment. The growth was largely confined to the service sector and local trade only. While the population of Hyderabad has grown three times after the formation of the state in 1956, basic amenities have not grown in the same proportion. The improvement in the transportation system largely benefited only the privileged classes of urban community. The industrial units that came up in the periphery of the city of Hyderabad by the efforts of migrants engaged largely their own “migrant” staff to man the industry, thus depriving the locals of employment opportunities at various levels. Most of the urban housing activity was concentrated in the eastern, northern and north-western parts of the city, while in the south, which has been the home of the native population, the same was insignificant, with the result that the city developed in an uneven manner. Even the civic amenities planned were often diverted to meet the needs of the migrants.21 United Andhra advocates, on the other hand, insist that Hyderabad is no longer merely a Telangana city and that its identity, particularly over the last 35 years or so, has undergone a complete change in all respects and that Hyderabad today is a major national metropolis. They have extended several arguments such as large investments, major change in demographic profile, massive seasonal employment for the unemployed coastal Andhra and Rayalaseema youth, political neutrality etc. in support of their contention. Be that as it may, notwithstanding certain amount of economic setback faced by the city post the current agitation of late 2009 - early 2010, the fact remains that Hyderabad has grown over the years from a city status to a large and thriving metropolis with a cosmopolitan outlook. The status of Hyderabad, along with a couple of other major issues, is at the centre of current debate with arguments vociferously extended both by the sections demanding separate Telangana and those insisting on keeping the state as a single unit as Samaikya Andhra. 21 Rao,Ram Mohan, et.al. 1997 Telangana-Dimensions of Underdevelopment, in, Seshadri, S. (ed), Centre for Telangana Studies, Hyderabad 1.3.07 It is a known fact that Hyderabad stands apart in terms of developmental profile. Hyderabad, along with its peripheral areas, has largely been service-centric in spite of housing several large manufacturing units both in public and private sectors and the real estate and infrastructure development enterprises, and has been growing along this pattern. Its pre-eminence in IT exports and as the biggest software centre in Andhra Pradesh is well established. The city is also contributing to the growing share of national exports from the software talent it has pooled from across the country. The availability of basic infrastructure like space/land, transport systems, power supply etc. provided an added advantage. It is also contended that migration of people to Hyderabad is not a new phenomena. It started in 1920s, at the invitation from the Nizam of Hyderabad to the farming community from coastal Andhra for cultivation of the lands of Nizam-Hyderabad. By 1930s, there were about 20 lakh migrants cultivating about 10 lakh acres of land in the then Hyderabad state. They were called “settlers”. Migration to Hyderabad was not confined to persons from coastal Andhra alone. Although in comparatively smaller numbers, migration had also taken place from Karnataka, Maharashtra, Bihar, West Bengal, Orissa, Uttar Pradesh and Gujarat etc. The city.s cosmopolitan character had enabled consolidation of “talent” from all parts of the country. The “Urdu” heritage formed the backbone for the spread of Hindi which facilitated communication linkages with the northern states and which in turn attracted work force from the north in the low income strata. Other infrastructure facilities, like availability of primary coal and power resources, lent support to encouraging investment. The city, thus, acquired a sort of national character with the spread of IT and ITrelated software and service enterprises. 1.3.08 Looking at the importance of the issue, a separate detailed Chapter dealing with Hyderabad alone, has been included in the Report. 1.3.09 Although, the period post introduction of Six Point Formula (SPF) till the turn of the century remained, by and large, peaceful and the state witnessed relatively impressive economic growth, one aspect which continued to be contentious for the Government employees of Telangana region and defied satisfactory resolution despite a host of measure and correctives, pertained to “employment in Government”. It may be recalled that, in one of the earlier violent agitations on this issue in 1952, in the then Hyderabad state, when Mulki Rules were in operation, a few students had lost their lives as a result of the police firing. The dissatisfaction on this front continued to agitate the minds of the government employees from Telangana region during these three decades also, which many times was expressed through demonstrations and other manifestations. 1.3.10 The issue of „Implementation of Mulki Rules” entailed judicial involvement and the follow-up action on the same was taken by the state government during 1956-73, based on the orders of the High Court and the Supreme Court. In the post-1973 dispensation, it was to be dealt with under the Presidential Order, 1975. The general criticism of the Telangana employees on the Presidential Order itself and its implementation was:- (i) The Presidential Order which was introduced to assure justice in Government employment and allay the fears of Telangana employees was used to inflict further discrimination against them in practice, as reflected in the changes of zones for employment (within the Telangana Zones); misinterpretation of the definition of “locals” in the Presidential Order to benefit “non-locals” and misuse of the exemption provided in the Presidential Order for gazetted positions and Heads of the Departments (HoDs) by upgrading several non-gazetted posts to gazetted level. (ii) The second point was that the Presidential Order was issued in 1975 and it took ten years for the Government to correct the anomalies and bring out a comprehensive G.O. in 1985, popularly known as G.O. 610. (iii) Another issue which Telangana employees have been raising is that although the Government has taken several measures in relation to the reservation of employment of Telangana people, each measure stood as a proof to the fact that the earlier measure was either not implemented fully or wrongly implemented. 1.3.11 In view of the criticism by the Telangana employees, as mentioned above, the state government in the year 1984 constituted an “Officers. Committee” headed by Shri K. Jayabharath Reddy, a former Chief Secretary to the state Government and two other Members, to look into the various anomalies in the implementation of the Presidential Order. This Committee identified the anomalies in Government employment between 1975 and 1985 which were in violation of the Presidential Order and recommended measures to rectify the same. Following the Committee.s report, the Government, thereafter, appointed a One-Man Commission headed by V. Sundaresan, another (Retd.) IAS officer of the state government, to further examine the violations in the implementation of the Six Point Formula and to suggest corrective step taking into consideration the report of the Officer.s Committee. On the basis of the recommendations of both these Committees, and after having wide ranging discussions, the state Government entered into an agreement with the Telangana Non-Gazetted Officers Union on 07.12.1985 and issued orders in the form of G.O.Ms. No.610 (SPF) on December 30, 1985, for the rectification of irregularities in the implementation of the Presidential Order. One of the key instructions under Para 5 (1) of this Order is as follows: “the employees allotted after 18.10.1975 to Zone-V and VI (i.e. Telangana Zones) in violation of zonalisation of local cadre under the sixpoint formula will be repatriated to their respective zones by 31.3.1986 by creating supernumerary posts wherever necessary”. During the next 15 years after the issue of G.O.610, the Government is reported to have been receiving representations regarding rectification of lapses in the implementation of the Six Point Formula insofar as it related to public services. The matter was discussed in an All-Party meeting held on 15.6.2001, and a One- Man Commission (Six Point Formula) was constituted on 25.06.2001, under J.M. Girglani, IAS (Retd.). The Girglani Commission submitted its final report on 30.9.2004 with 126 findings and suggested 35 remedial measures. The Government constituted a Group of Ministers (GoM) to examine the recommendations of the One-Man Commission on 10.8.2004. The GoM examined and accepted the final Report of the Girglani Commission. The state cabinet discussed the Report on 16.02.2006 and after further consultations and clarifications, the Report was finally accepted by the Government on 10.08.2006. The salient aspects of the follow-up action/steps taken by the Government on the implementation of Girglani Commission Report are at Appendix 1.12. It is learnt by the present Committee that during the past four years, as a result of the steps taken by the Government to implement Girglani Report, there has been great improvement in the satisfaction level of Telangana employees on the implementation of G.O. 610. The fact, however, remains that the implementation of G.O. 610 during 1985 to 2005 was, at best, tardy, which remains a grievance of Telangana employees. This issue continues to be highly contentious even today. A separate Chapter, therefore, examining this subject in a comprehensive manner, has been dedicated later in the Report. 1.3.12 The formation of united Andhra Pradesh was premised on the allinclusive Telugu “sub-nationalism”. However, the imbalance in the development that existed in the three regions of the integrated state at the time of formation and other social and cultural factors gave each region a distinct identity. This identity continued to influence the state politics and electoral outcomes in the coming decades. While the demand for separate Telangana stayed dormant during 1982-2000 periods, the state did face some major internal agitations since the emergence of TDP after the 1983 Assembly elections, on issues such as: a. Reduction in the retirement age from 58 years to 55 years by the TDP Government which resulted in a prolonged confrontation between the Non-gazetted Officers (NGOs) and the Government; b. Abolition, by the TDP Government of the hereditary posts of two traditional village officers viz: the post of Karanam in Andhra region or Patwari in Telangana and replacing them with a Village Administrative Officer(VAO) who was appointed by the state government and making it transferable; c. Anti-Arrack movement by women d. Assertion of Dalits and the emergence of independent Dalit organizations; etc. 1.3.13 In the meanwhile, the state during the last 30 years also witnessed the growth of Naxalism in a major way. The Naxal movement in Andhra Pradesh was the product of many combinations and various factors. Some of the issues listed in sub-para 1.3.12 above also contributed to the growth of this movement. It had its genesis in the Communist movement of 1945-51 in the Telangana region involving the peasant struggle against Zamindari and landlordism. After independence, the people.s support to the movement, however, gradually receded. It got re-generated after the Naxalbari movement in 1968-69 in West Bengal and the problem spread to northern Andhra Pradesh including Telangana. Although, Naxalism was treated by the Government as a law and order problem and was controlled appreciably through various means, it continued to expand, establishing its influence in the politics of Andhra Pradesh and, in particular, in the electoral politics. Reportedly, different political parties did seek the support of the naxals at election time during this period. The details of the influence of Naxalism on the polity, economy and internal security of Andhra Pradesh are discussed in a separate Chapter in the Report. 1.3.14 It will be recalled that the BJP, in its national executive meeting at Kakinada (Andhra Pradesh) in 1997, had passed a resolution supporting a separate state for Telangana. Accordingly, in the 1998 Lok Sabha elections, BJP gave the slogan “One Vote, Two States”. It received more votes in the Telangana region. Taking advantage of this position, TDP, which, by then, had started implementing the new economic reform programme of the Centre and had to leave its electoral alliance with the left, made BJP its ally in 1999 Lok Sabha and state Assembly elections. Both parties gained through this alliance. BJP won seven out of the eight Lok Sabha seats it contested while TDP won 29 Lok Sabha seats. In the State Assembly elections, TDP won 179 seats and formed the Government. In the meantime, driven by the situation prevailing in the state, MLAs of the Congress from Telangana region had also started a regional forum called Telangana Congress Legislators Forum (TCLF) with the consent of the state leadership. In the panchayat election in Telangana region, the slogan of TCLF was “Jai Congress, Jai Telangana”. In addition, in the panchayat elections campaign, other general issues such as strengthening of the Panchayati Raj bodies with more power to these bodies in terms of funds, functions and functionaries were also highlighted. Thus the year 2001 marked the beginning of the demand for separate Telangana once again. 1.4 Andhra Pradesh (2001-2009) 1.4.01 The resurfacing of the Telangana issue in panchayat elections provided the ground for the projection of the popularity of the TRS, which was created only a year earlier with the goal of achieving a separate Telangana. TRS provided the Telangana cause with all the needed ideological and logistical support to keep the momentum going. In the process, the party tried to maintain electoral prominence both at the state and at the Centre. 1.4.02 It may be recalled that the agitation of 1969 was primarily started by social groups, students and government employees and made active largely through the support of dissident Congressmen. On the other hand, the Telangana separation effort of 2001 had multi-party involvement, largely on the political plane, vying for the same cause. The cause was also interwoven with the political alignments between the national and the two regional parties (TDP and TRS) on the one hand, and among national parties on the other, mainly for electoral gains. 1.4.03 As noted earlier, with the coming of the TRS and the position on Telangana taken by the BJP, the state unit of the Congress Party had also projected Telangana cause under the aegis of “Telangana Congress Legislators Forum (TCLF)” in the panchayat election in 2001. It was reported that at that time 41 MLAs belonging to the Congress from Telangana region had urged the Congress President, Smt. Sonia Gandhi, to permit them to take up the “movement” for a separate state of Telangana. In fact, in these panchayat elections, the main cause of rivalry between TRS and Congress was the Telangana issue, with each trying to gain at the cost of the other. Further, the leaders of the Congress Forum for Telangana and the TCLF passed a resolution at Nalgonda in December, 2002, assuring the people that a separate statehood for Telangana was very much on the agenda of the Congress and it would strive to creat a separate Telangana soon. It was also claimed that such a possibility existed only under Congress rule and hoped that the demand would be included in the next manifesto of the Party. It was also mentioned that regional parties had failed earlier in securing this goal. They pressed the point that Congress High Command had supported the formation of Jharkhand, Uttaranchal (now Uttarakhand), and Chhattisgarh and mentioned that the Nalgonda meeting was being held with the support of the Congress High Command. 1.4.04 In the run-up to the 2004 Lok Sabha and Assembly elections, the Congress and the TRS formed an electoral alliance. In the Congress election manifesto for 2004 elections, it was stated that “the Congress Party recognizes the growing emotions and aspirations of the people in the Telangana region”. It was further added in the manifesto that „while respecting the report of the States.Reorganization Commission, the Congress Party notes that there are many valid reasons for formation of separate states in Vidarbha and Telangana. However the reorganization of existing States raises a large number of issues. The Congress Party feels that the whole matter could be best addressed by another States. Reorganization Commission to look into all the issues involved”. 1.4.05 The Congress won both the Lok Sabha and the State Assembly elections and formed Governments at the Centre as well as in the state. The TRS also joined the Government, both at the Centre and in the state. The Government at the Centre was formed by “The United Progressive Alliance (UPA)”, led by the Congress Party. The UPA in their National Common Minimum Programme (NCMP), 2004, of the Government included the Telangana issue also stating that “The UPA Government will consider the demand for the formation of a Telangana state at an appropriate time after due consideration and consensus”. Subsequently in the Presidential address to the Joint Session of Parliament on June 7, 2004, mention was made that “the Government will consider the demand for the formation of a Telangana State at an appropriate time after due consultations”. The UPA Government accordingly constituted a three-Member Committee of the Cabinet Ministers under the Chairmanship of Shri Pranab Mukherjee in November, 2004 with Dr. Raghuvansh Prasad Singh and Shri Dayanidhi Maran as Members. The Committee did take up this matter further, but no conclusion seems to have been arrived at. 1.4.06 On the reported grounds that the Central Government had been indecisive over the delivery of its electoral promise to the TRS for creating a separate Telangana, although (i) as per the election manifesto of the Congress Party no such definite promise had been made; and ii) in the CMP also no guaranteed assurance or time limit had been indicated, TRS in September, 2006 withdrew support to the Congress-led UPA Government at the Centre. The other main reason prominently quoted was the differences between TRS President K.Chandrasekhara Rao and the Congress Chief Minister Dr. Y.S.Rajasekhara Reddy. TRS ministers left their positions in Government both at the centre and in the state. Subsequently, all the four TRS MPs and the sixteen MLAs resigned their seats in the first week of March 2008 over this issue, forcing bye-elections. The bye-elections were held in May, 2008. In the run-up to the elections, while the TRS went all out in supporting the cause of Telangana and called the byeelections as a referendum on the issue, both the Congress and the TDP maintained that the bye-elections did not lend themselves to being seen as a referendum on Telangana issue, as they too were not opposed to the formation of a separate Telangana state. However, the election results proved quite disappointing to the TRS which could retain only seven out of sixteen MLA seats and two out of four MP seats. 1.4.07 On January 31, 2009, before the State Assembly elections, Shri K.Chandrasekhara Rao, President, TRS announced that TRS had joined the „Mahakutami. (grand alliance). The grand alliance was headed by Telugu Desam Party and included the Third Front and the Left parties. The main purpose of “Mahakutami” was to contest the upcoming State Assembly and Lok Sabha elections with a view to win the same as a United Front against the Congress party as the Congress party, in their opinion, was not taking a decision on Telangana. The BJP, though having not been able to resolve the Telangana issue during the NDA regime up to 2004, continued to maintain the earlier stand that their policy was for smaller states and if they won the forthcoming elections (Lok Sabha and Assembly), they would be in a position to create Telangana. In the meanwhile, the Congress ruled state government constituted a Joint Committee of Legislators under the Chairmanship of the then Finance Minister, Shri K. Rosaiah, on Telangana related issues. However, some of the opposition parties such as BJP, CPI(M), CPI and TRS replied that they did not wish to be associated with the said Committee. The TDP also did not respond to the Government.s request. The Committee was thus formed, having seven legislators from the Congress Party representing all the three regions and one from AIMIM. With major parties not co-operating and the events taking an entirely different turn by the year end (covered in the subsequent para) the Committee could not move too much forward on its Terms of Reference22. 22 The ToR for the Joint Committee included examining concerns of minorities in the proposed Telangana set up, facts relating to employment and exploitation of resources, identification of economic issues, the status of Hyderabad Metropolitan area taking into account the migrant population, their concern excluding Hyderabad, the issues relating to Maoists and terrorists activities in the context of the proposed Telangana set up, the sharing of river waters visa-a-vis the existing situation, the existing demands for separate statehood by other regions of the State and working out a strategy for overall development of all the regions in the event of formation of Telangana state including the infrastructure facility at the state capital – both for the State and Central Governments. 1.4.08 In the Assembly elections of May 2009, TRS won only 10 seats, showing a further decline in its overall popularity in the region. To recall, TRS had twenty six seats in 2004 which came down to seventeen seats after 2008 bye-elections (which were held only for sixteen Assembly segments) and in 2009, as stated above, it further shrank to ten seats only. In the Lok Sabha, it won only two seats, coming down from the five seats it had held in the previous Lok Sabha. It would thus be seen that the popularity of TRS in 2009 had dipped substantially from 2004 levels. Many political pundits attribute the impressive success of the TRS in 2004 to their alliance with the Congress party. Soon after the 2009 Assembly elections, TRS left Mahakutami and tied up with the BJP, the alliance which exists even at present. The flip-flop electoral policy of TRS right from its constitution in 2001, also came to the fore with its latest alliance with the BJP. Its leader and some of its MLAs who were part of TDP, had left TDP to form TRS in the year 2001; in 2004 elections it entered into an alliance with the Congress Party, left the alliance in 2006, contested the bye-elections for sixteen Assembly seats in 2008 on its own, joined the Mahakutami led by TDP before 2009 elections and finally left the alliance soon after the elections and joined hands with the BJP. Be that as it may, the Congress party won the State Assembly elections with a comfortable majority and formed the Government in May 2009. In the Lok Sabha elections, the Congress won thirty three out of forty two seats from Andhra Pradesh and the Congress-led United Progressive Alliance (UPA-2) again formed the Government at the Centre. It may be relevant to mention here that unlike the National Common Minimum Programme (NCMP) of UPA-1, the NCMP of UPA-2 did not make any mention of the Telangana issue. 1.4.09 It may be noted that there was no specific noticeable incident of major public concern over the Telangana issue during the months of May- November, 2009. Incidentally, during this period elections to Greater Hyderabad Municipal Corporation (GHMC) took place on November 23, 2009, which TRS did not contest. The President of TRS made a statement that „since we have a larger agenda like attainment of a separate Telangana we have decided not to participate in the GHMC Polls which is a minor issue having no great consequence.. He also made a statement that, instead, his party was making an elaborate plan for the indefinite fast to be undertaken by him in the last week November, 2009. However, other parties held that TRS did not contest these elections as the party did not have any support in greater Hyderabad. Notwithstanding this, TRS once again started taking an aggressive posture on the Telangana issue from November 2009 onwards. The Chief Minister, Dr. Y.S. Rajasekhara Reddy suddenly passed away in a helicopter crash on September 2, 2009. On November 9, 2009, the TRS president Chandrasekhar Rao wrote to the President of India about his intention to go on fast-unto-death in order to fulfil the hopes and aspirations of the people of Telangana for a separate state. He also publicly announced that the intended fast would start on November, 29, 2009, as planned. 1.5 Andhra Pradesh (November 29, 2009 – December 31, 2010) 1.5.01 The events and happenings in the state in the last one year starting from November 29, 2009 are still quite fresh in public memory. To recall, as announced earlier, TRS President, K. Chandrasekhara Rao started his fast-untodeath on November 29, 2009 demanding that the Central Government should introduce the Telangana Bill in Parliament. Prior to his undertaking the fast, TRS called upon student bodies, employees unions and various non-gazetted officials. organizations to join the movement. After the Telangana issue had resurfaced around Assembly elections of 1999, the students, non-gazetted officials and other organizations at this point of time once again got involved in the Telangana movement. On the day of his fast, i.e. November 29, 2009, K. Chandrasekhara Rao was arrested and taken to Khammam. On November 30, 2009 he reportedly broke his fast but resumed it soon thereafter under pressure from vociferous and agitating pro-Telangana elements. Following these developments, there was simultaneous and wide-spread agitation and violence in Telangana region for a few days, particularly on December 6-7, 2009, resulting in major damage to public and private property and loss of life including a number of suicides. Around the same time, a Joint Action Committee (JAC) was formed by the students of Osmania and Kakatiya universities. The JAC started seriously agitating for the cause of a separate Telangana, demanding an assurance for the same. The agitations led to the closure of educational institutions and business establishments throughout the Telangana region. Public transport services were also suspended. During this period, reportedly over five thousand persons were taken into preventive custody with a view to bringing the law and order situation created by the agitations under control. 1.5.02 With the situation becoming grim, a meeting of the floor leaders of the political parties in the State Legislature was convened by the Chief Minister, K.Rosaiah on December 7, 2009. It is learnt that all political parties, except CPI (M), were in favour of a proposal to adopt a resolution in the State Assembly for creation of a separate Telangana. The CPI (M) apparently referred to the stand it had taken at the time of the Pranab Mukherjee Committee. The AIMIM on the other hand observed that the proper forum to express its views would be the Legislative Assembly. Taking into account the situation in the state and the deliberations in this all party meeting, the Union Home Minister, P.Chidambaram in the late evening of December 9, 2009 at New Delhi announced the decision of the Central Government to initiate the process of forming the state of Telangana, adding that an appropriate resolution would be moved in the State Assembly. Based on this development TRS President, Chandrasekhara Rao gave up his fast and the agitation was called off. 1.5.03 The above announcement, however, created a backlash in coastal Andhra and Rayalaseema regions, resulting in agitations and eruption of violence in many districts. The agitations included bandh calls by political parties, road blockages, fast-unto-death programmes, relay hunger strikes etc. A near total bandh was organized in all the districts of coastal Andhra and Rayalaseema on December 11, 2009 at the call of political parties. The agitations continued during the second and third weeks of December, 2009. Reportedly, nine MPs, one hundred forty three MLAs and forty one MLCs submitted their resignations in protest against the announcement on the formation of a separate Telangana. 1.5.04 Looking at the totality of the situation, including the intensity of the backlash and the strong sentiments expressed through agitations in all the regions of the state as also the near vertical division on the issue among the major political parties in the state, the Union Home Minister made another statement on December 23, 2009 that the situation in the state had altered since December 9, 2009 when the Central Government had announced that the process of the formation of a separate state of Telangana would be initiated and an appropriate resolution would be moved in the State Assembly (meaning perhaps thereby that moving such a resolution in the State Assembly was appeared to be difficult at this point of time). The Home Minister, therefore, in this statement emphasized the need for wide ranging consultations with all political parties and groups and promised to take steps to involve all concerned in the process. Although, this statement led to ending of agitations in coastal Andhra and Rayalaseema regions, agitations restarted in Telangana region due to the perceived change in the stand of the Government of India. At this point, reportedly sixty three MLAs belonging to Telangana region (Congress – thirteen; TDP – thirty seven; TRS – ten; BJP –one; PRP –two) submitted their resignation. On December 30, 2009, a bandh was called by the Telangana Joint Action Committee (TJAC) paralysing the entire region. 1.5.05 During the period starting from November 29, 2009 till the end of April 2010 the state witnessed agitations of varying kinds, the most intense being from late November 2009 upto January 2010. Initially, these agitations were in Telangana region, then after the December 9, 2009 announcement, in coastal Andhra and Rayalaseema regions, and again back to Telangana region, post- December 23, 2009 statement. The law and order machinery of the state took appropriate action to bring the situation under control. A large number of cases both under preventive and substantive sections of law were registered and the needed arrests carried out. Since the agitations in Telangana region were for a much longer time compared to coastal Andhra and Rayalaseema regions, the number of cases registered against agitators from Telangana was also much higher. In all, over 1600 cases were registered involving more than 8000 agitators. The cases were classified in two categories, i.e., simple cases such as Rasta Roko, Rail Roko, making provocative statements, instigating violence, violation of prohibitory orders, insulting national leaders by garlanding their statues with objectionable material and attempt to suicide etc. and serious cases involving damage and burning of private properties, government properties and assault on public servants. The state government has recently withdrawn all simple cases totalling to 565 pertaining to the first category in the interest of the career prospects of the youth and the students. The region-wise details of cases withdrawn are as: Telangana – 440; Coastal Andhra – 58 and Rayalaseema – 67. It is further understood that appropriate decision will be taken by the Government from time to time on withdrawal of the remaining cases after examining each case on its merit. 1.5.06 As indicated in the announcement of December 23, 2009, the Central Government invited the Presidents/senior leaders of the eight recognized political parties of the state for a meeting on January 5, 2010 to deliberate on the mechanism of the proposed consultations and to lay down a road map for the same. In the meeting chaired by the Union Home Minister on the said date at New Delhi and attended by the Presidents/Senior representatives of eight recognized political parties23, the opinions on the issue were quite divided. It is learnt that while TRS, BJP and CPI expressed the view that no further consultations were necessary and that the process of creation of a separate state of Telangana, as announced, should be initiated, the Congress Party, CPI(M), AIMIM and the PRP conveyed that wide ranging consultations would be an appropriate option at this stage. The TDP was represented by two leaders who took divergent positions; with one favouring consultations and the other supporting a separate state. Notwithstanding the diversity in their views on the further steps to be taken, there was clear recognition of the need of the hour, which was to ensure that peace and calm should return to the state at the earliest. Understanding the serious law and order problems the state was facing, all the parties issued an appeal to the people of Andhra Pradesh to maintain peace and public order. 23 The parties that attended this meeting are: Indian National Congress (INC), Bharatiya Janta Party (BJP), Communist Party of India (Marxists) (CPI(M), Communist Party of India (CPI), Telugu Desam Party (TDP), All India Majlis Ittehaud-ul-Muslimeen (AIMIM), Telangana Rashtra Samithi (TRS), and Praja Rajyam Party (PRP). 1.5.07 In the period following the above initiative of Central Government, however, different groups continued to support pro and anti division agitations. This period also witnessed intra party/intra group rifts in approaches. In this backdrop, the Government of India vide its decision dated February 3, 2010, constituted the present Committee i.e. the “Committee for consultations on the situation in Andhra Pradesh”. The details of the constitution of the Committee and its Terms of Reference have already been covered in Approach and Methodology of the Report. The Committee held its first meeting on February 13, 2010. Although, most political parties and other concerned groups started cooperating with the Committee right from the beginning, the Bharatiya Janata Party (BJP) neither responded to the Committee.s request to provide their inputs nor joined in the deliberations with the Committee. Some groups from Telangana region such as the lawyers, the representatives of students. JAC, etc. expressed reservations initially, but after observing the functioning of the Committee for some time, came forward to provide their views through detailed memoranda and also took part in extensive interactive sessions. The Committee was able to establish its rapport and credibility very quickly with all the sections of the society in the state which helped in the softening of the agitational mood and in the smooth conduct of its work. By and large, a general atmosphere of peace and calm and rational working conditions returned to the state which enabled the Committee to complete its programme of deliberations, interactions and visits to different parts, as per its schedule. 1.5.08 It may, however, be relevant to mention here the three important events that took place during the tenure of the Committee, which had drawn widespread attention of the society. These three events were: (i) the byeelections to the twelve Assembly segments in five districts in Telangana region held in August 2010; (ii) the agitation for the demand for extension of 42% reservation in the Group-I posts in the Government for which recruitment is made under the aegis of the Andhra Pradesh Public Service Commission and (iii) the agitation by lawyers. groups in Telangana demanding reservations in the law officers. posts of the state Government. Due note was taken of these events and their outcome by the Committee. 1.5.09 The bye-elections for the twelve Assembly segments were necessitated by the resignations, in February 2010, of twelve MLAs (ten belonging to TRS, one BJP and one TDP. The TDP MLA resigned from the party in protest against the party.s ambivalent stand on Telangana issue and later joined TRS under protest and in support of the demand for separate state of Telangana. While eleven seats were won comfortably with huge majority by the TRS candidates including the one TDP candidate who had switched over to TRS, the twelfth seat was won by the BJP candidate with TRS support from Nizamabad urban constituency defeating the PCC President, D. Srinivas. In these byeelections, there was vast increase in the votes polled by TRS candidates as compared to the previous elections. One view on the outcome of all that had happened was that the status quo had been restored and the twelve sitting MLAs who had resigned had returned. However, if one sees the margins, it would be noticed that despite the fact that the overall polling in these bye-elections had dipped by about two per cent (from 66% to 64%) as compared to the previous elections, the separate Telangana sentiment aggressively and vociferously aroused by the TRS had appealed to the people in very large measure. Although the Congress and the TDP candidates also echoed pro-Telangana sentiment, they did not have as much impact on the public perception as the TRS candidates did. While the TDP faired rather badly, even the Congress party was not able to acquit itself well. It is also to be noticed that the twelve constituencies are located in five districts of Telangana region and cover a wide cross section of society. The bye-election results, thus, did provide a further fillip to the separate Telangana demand. 1.5.10 On the reservation for Group-I posts, the Telangana activists and the Osmania University JAC started an agitation for postponing the Screening Test for Group-I posts [conducted by Andhra Pradesh Public Service Commission (APPSC)] demanding 42% reservation of the posts for Telangana. A bandh to press this demand was called on September 5, 2010, the day of the examination. However, the examination was conducted successfully on September 5, generally peacefully all over the state, barring a few stray incidents. In the examination centre located in the B.Ed. College at Osmania University, Hyderabad, the Telangana students entered the examination hall and tore up the question papers. APPSC decided on 14th September to conduct Group-I examination again for all candidates whose centre was at B.Ed. College, Osmania University and also for those who had missed the same due to disturbances caused by Telangana bandh on September 5, 2010. The re-examination was conducted for all those who wanted to appear on October 25, 2010 at three centres in Hyderabad. 1037 candidates appeared for the examination on this day. The overall attendance for the examination i.e. applicants vis-à-vis candidates actually attended was 44.5% in the state and about 40.6% in Telangana. The question of reservation for employment in Government jobs has been discussed in detail in a separate Chapter subsequently in the Report. 1.5.11 The lawyers of Telangana region have been agitating for a long time on the issue of discrimination against them in appointments as law officers/standing counsels. While they had represented about this to the state Government and the Advocate General in February 2010, in September 2010 the agitation became serious through boycott of the Courts in Telangana region and also the High Court and through indefinite fasts etc. While this issue has been discussed at length subsequently in the Report, it will be worthwhile to mention here that the state Government constituted a Committee of three Ministers namely Dr. (Mrs) Geetha Reddy, Minister for Information & Public Relations and Tourism & Culture (from Telangana), Sri. Mopidevi Venkata Ramana Rao, Minister for Law & Courts, Technical Education, (from coastal Andhra) and Sri P. Ramachandra Reddy, Minister for Forests, Environment, Science and Technology (from Rayalaseema) - representing all the three regions - in September 2010 to ensure regional and social balance in the appointment of law officers and standing counsel. It is learnt that the Committee has since completed its work and submitted the report to the state government, fulfilling its mandate for providing regional and social justice in these appointments. Details pertaining to the lawyers. demands are also covered in the Chapter on “Employment in Government”. 1.5.12 The entire working of the Committee for the last ten months or so has been covered in detail in the section on Approach and Methodology. It will suffice to conclude that in spite of some initial hiccups, the agitational mood and the early non-cooperative stance taken by a few groups, who, except for the BJP, soon thereafter started extending their full support, the Committee was able to complete its mandate in the given time-frame. CHAPTER 2 REGIONAL ECONOMIC AND EQUITY ANALYSIS PART I : ECONOMIC PROFILE 2.1 Background and Profile of AP 63 2.2 Gross District Level Domestic Product (GDDP) 66 2.3 Share of Income by Regions 67 2.4 Regional Sectoral Share of GDDP 69 2.5 Scheduled Commercial Bank (SCB) Credit 70 2.6 Other Economic, Fiscal and Programme Indicators 75 2.7 Agriculture, Irrigation and Productivity 86 2.8 Use of Electricity 93 2.9 Work Participation Rates and Employment 96 2.9.08 Migration 104 PART II : EQUITY AND SOCIO-ECONOMIC DIMENSIONS 2.10 Economic Inequalities 106 2.11 Inequity Assessed through Estimates of Gini coefficients 110 2.12 Consumption Expenditure differentials by population groups 112 2.13 Human Development: Deprivations Index 113 2.14 Social Profile 115 2.15 Summary and Discussion 117 2 REGIONAL ECONOMIC AND EQUITY ANALYSIS PART I: ECONOMIC PROFILE 2.1 Background and Profile of AP 2.1.01 Andhra Pradesh (AP) is one of the largest states of India. Spread over 275 thousand square kilometers, it hosts a population of over 90 million. AP has reported a total GDP of `326547 crores which works out to be `35600 per capita for the year 2007-8 at current prices. AP is the fourth largest state economy of India with its per capita income about the average for India but growing at a rate of over 10% since 2003-4 (Government of India, Ministry of Statistics and Program Implementation). Yet, only 26 % of its GDP accrues from agriculture while 62% of all workers are either farmers or manual agricultural labourers (See Table 2.1). Per hectare agricultural output works out to be `25 thousand which is above the average for India. AP has a literacy of 60.5% (70.3% male and 50.4% female) and low infant and child mortality (43 per thousand births). It has 27 % of its population living in urban areas and the city of Hyderabad is the sixth largest city in India. The SCs, STs and Minorities have a share of 16.2%, 6.6% and 9% respectively; and AP has been following a large number of policies which promote inclusive development across all regions and districts. 2.1.02 One notices variations across districts in many parameters which is but expected in a large state. Often such variations are explained in terms of natural, climatic, historical and governance factors. In this chapter all parameter aggregates are estimated at the level of the region for ready comparisons. The district level estimates for selected economic variables considered in this analysis can be found at the end of this report in Appendix 2.4. to Appendix 2.20. Table 2.1: A Profile of Andhra Pradesh Region/District Area (‘000 Sq. Km.) Population (in Millions) 2001 Population Density (Persons/Sq .Km.) Urbanizatio n (in%) Sex Ratio IMR (Per 1000) Literacy Rate % of SCs & STs Work Participatio n Rate % Share of Agri. in Total Workers Per Hectare Agri. Output (` ‘000) 2007-08 Per capita DDP (in ` at Current Prices) 1 2 3 4 5 6 7 8 9 10 11 12 13 Andhra Pradesh 275 76.2 277 27.3 978 43 60.5 22.8 45.8 62.2 24.6 35600 Telangana inc Hyderabad 114.8 30.9 270 31.8 971 40 58.0 24.7 45.4 58.3 20.2 36082 Telangana exc Hyderabad 114.6 27.1 237 22.2 977 42 55.0 27.0 47.7 63.2 20.2 33771 Adilabad 16.1 2.5 155 26.5 989 44 52.7 35.3 45.1 61.0 12.7 29187 Nizamabad 8.0 2.3 293 18.1 1017 40 52.0 21.9 49.4 57.0 29.0 26241 Karimnagar 11.8 3.5 296 19.4 998 29 54.9 21.2 49.0 58.7 26.8 33844 Medak 9.7 2.7 275 14.4 974 40 51.6 22.6 48.4 67.7 19.5 42052 Mahbubnagar 18.4 3.5 191 10.6 972 58 44.4 25.0 51.9 73.2 11.0 27959 Khammam 16.0 2.6 161 19.8 975 40 56.9 43.0 48.3 72.1 27.2 37194 Warangal 12.9 3.2 252 19.2 973 41 57.1 31.1 48.3 68.1 25.3 26306 Nalgonda 14.2 3.2 229 13.3 966 48 57.2 28.3 49.1 67.6 15.9 34138 Rangareddi 7.5 3.6 477 54.2 944 38 66.2 18.6 40.2 40.5 14.6 43400 Hyderabad 0.2 3.8 19149 100 933 22 78.8 8.9 29.2 1.7 51856 Rayalaseema 67.4 13.4 201 23.2 969 45 59.7 19.5 47.7 66.5 15.3 33056 Kadapa 15.4 2.6 169 22.6 974 39 62.8 18.1 44.8 63.3 12.9 46305 Kurnool 17.7 3.5 199 23.2 965 47 53.2 19.8 49.4 68.2 15.8 29362 Anantapur 19.1 3.6 191 25.3 958 54 56.1 17.6 48.8 67.5 9.1 32255 Chittoor 15.2 3.7 246 21.7 982 40 66.8 22.2 46.8 66.1 23.5 28147 Coastal Andhra 92.8 31.7 342 24.7 988 42 63.2 22.3 45.4 64.0 33.0 36496 Visakhapatnam 11.2 3.8 342 39.9 985 50 60.0 22.1 41.8 53.4 23.6 51146 East Godavari 10.8 4.9 454 23.5 993 37 65.5 21.9 39.6 62.1 50.9 36335 West Godavari 7.7 3.8 494 19.7 991 38 73.5 21.7 44.1 69.2 55.0 36898 Krishna 8.7 4.2 481 32.1 978 28 68.8 20.4 44.0 59.0 34.4 41139 Guntur 11.4 4.5 392 28.8 984 29 62.5 23.0 49.1 66.8 40.7 32277 Prakasam 17.6 3.1 174 15.3 971 40 57.4 25.2 50.3 68.4 21.3 35472 Nellore 13.1 2.7 204 22.4 984 39 65.1 31.1 45.4 62.3 28.1 34442 Srikakulam 5.8 2.5 438 11.0 1014 53 55.3 15.0 47.4 68.5 22.3 24298 Vizianagaram 6.5 2.2 346 18.3 1009 68 51.1 20.1 52.2 68.4 20.7 25498 Source: Census of India, 2001, CSO, Ministry of Statistics and Programme Implementation, GOI 2007-8. 2.1.03 The state is divided into three prominent regions based on both historical and geo-physical factors, namely, Telangana, coastal Andhra and Rayalaseema comprising ten, nine and four districts each and hosting population shares of 40.6%, 41.6% and 17.6% respectively. Hyderabad city, which falls within the Telangana region, is a predominantly urban district which had a population of 3.8 million in 2001 and is expected to host a population of over 4.9 million or about 5.6% of state population in 2010. Hyderabad urban agglomeration, spread over the districts of Hyderabad, Rangareddy and Medak, is expected to reach a population of 7.3 million or 8.4% of state population in 20101. Telangana region has a slightly larger SC/ST population at 24.7 % compared with 22.3% in coastal Andhra and 19.5% in Rayalaseema. Telangana also has a relatively higher percentage of minorities compared with coastal Andhra. 1 Hyderabad district is fully urbanized and is coterminous with Hyderabad city since long. In fact the city of Hyderabad has now grown beyond its district borders. The spillover effect of the growth of Hyderabad is strongly felt in the Rangareddy and Medhak districts as well. Urban Hyderabad has multiple identities which are listed below. (a) Hyderabad District – This is an administrative region with clearly defined boundary. The census of India uses this concept to count the population of Hyderabad district which included population of Secunderabad. Many development indicators are assessed at this level of urban identification. (b) Hyderabad Urban Agglomeration – The census of India further uses the concept of urban agglomeration, which in case of Hyderabad extends beyond the district boundary and reaches urban growth in Rangareddy and Medhak districts. (c) The Municipal Corporation of Hyderabad (MCH) – Municipal Corporation is a well known urban body with defined areas for enforcing its operations. Recently, this corporation has been expanded considerably and rechristened as Greater Hyderabad Municipal Corporation (GHMC); which includes some part of Rangareddy and Medhak districts. (d) Hyderabad Urban Development Authority (HUDA) – For the purposes of undertaken focused development in urban areas in Hyderabad under the direct supervision of the Chief Minster the HUDA was created. Recently this has been replaced with Hyderabad Metropolitan Development Authority (HMDA) with enhanced coverage, area and powers for local level planning and coordination. Thus the population and area of Hyderabad differs considerably depending upon the conceptual identity and for what purpose one intends to use such information. Therefore, it is difficult to arrive at a reasonable count of the population of Hyderabad for the inter-censal period. The population counts can be best done through the Indian census which is due by April 2011. For the purposes of comparisons between various regions of the state of AP the committee has undertaken migration adjusted population estimates using the concept of the ‘district of Hyderabad’. It is natural to compare the Hyderabad District as a unit with other regions which are all strictly based on administrative boundaries. Using this concept it is found that Hyderabad district (including Secunderabad and Osmania Uni area) had a population of 3.8 million in 2001. This region is expected to have experienced a natural population increase of about 1.02%, estimated based on previous population growth scenario. The NSSO 64th round survey conducted during the year 2007-08 suggests that Hyderabad district has experienced an in-migration rate (rate of migration from out of the district boundary) of 3.6%. Thus adjusting for the rate of migration it is expected that the Hyderabad district consists of 4.9 million people or 5.6% of the state population in 2010. However, the population of Hyderabad urban agglomeration is expected to be 7.3 million or 8.4% of the state population. 2 Since the district, city or metropolitan area of Hyderabad is highly urbanized, in this Chapter it is considered as a separate region for discussion; consequently wherever there is a reference to Telangana it excludes Hyderabad district. For the sake of easy understanding, however, the graphic and tabular presentation of the empirical estimates is made for Telangana region both with and without Hyderabad and identified as ‘Telangana incl. Hyd’ and ‘Telangana excl. Hyd’ respectively. 2.1.04 Coastal Andhra region record a per capita income of `36496 followed by Telangana (including Hyderabad) with a per capita income of `36082 (`33771 excluding Hyderabad)2, and `33056 in Rayalaseema at 2007-08 current prices. Rayalaseema draws its income from agriculture to the tune of 25% followed by 24% in coastal Andhra and least in Telangana at 22%. The overall work participation rate is high at 47.5% in Rayalaseema followed by 46% each in coastal Andhra and Telangana. As expected, the level of urbanization is rather low in all regions – Telangana (22%) and 25 % in coastal Andhra and 23% Rayalaseema. Therefore, Hyderabad district which is fully urbanized has grown at the cost of all the three regions and is now central to the economies of the three regions in Andhra Pradesh. Refer to Appendix 2.1 for a comparison of additional variables amongst the three identified regions. 2.2 Gross District Level Domestic Product (GDDP) 2.2.01 In India, value added in the productive sectors of the economy is estimated at the level of the state. Using time tested standard methods the state GDP is redistributed to each of the districts based on the structure of the district economy. In the following analyses such Gross District Level Domestic Product (GDDP) data are aggregated at the regional level to undertake regional level comparisons over time. Hyderabad being dominantly urban with a concentration of manufacturing, business and both public and private services sector activities, the per capita income has always been high, yet in 1993-94 it was coastal Andhra which had the highest per capita income of `12809 at 1999-2000 prices and Telangana excluding Hyderabad city had lowest per capita income at `11391. However, by the year 2007-8, Hyderabad city experienced extraordinarily high growth in per capita income and reached `39145 level; the remaining regions also experienced growth so as to reach for example, `26655 in coastal Andhra, `25237 in Telangana (excluding Hyderabad) and `23860 in Rayalaseema (See Table 2.2). 35.8 43.3 38.2 73.7 21.7 35.1 58.4 63.0 60.3 76.8 58.0 54.1 0 10 20 30 40 50 60 70 80 Andhra Pradesh Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra % Figure 2.1: Growth in Percapita Income across Regions of AP 1993-94 to 2000-01 2000-01 to 2007-08 Table 2.2: Per Capita DDP Aggregated at Various Combinations of Regions in AP (at 1999-2000 Prices/ `) Region 1993-94 2000-01 2007-08 Andhra Pradesh 12235 16615 26310 Telangana inc Hyd 11558 16566 27006 Telangana exc Hyd 11391 15746 25237 Hyderabad 12745 22135 39145 Rayalaseema 12414 15105 23860 Coastal Andhra 12809 17301 26655 Source: GOI, Ministry of Statistics and Program Implementation 2.2.02 A correct picture of the economic performance can be well understood by reviewing the rate of growth by region. During the period 2000-1 and 2007-8, the whole of AP experienced an average per capita income growth of 58%; during this same period Hyderabad recorded the highest growth to the tune of 77%, followed by Telangana region excluding Hyderabad at 60%, Rayalaseema at 58% and coastal Andhra at 54% which was the least. It can be clearly observed that Telangana region has experienced unprecedented growth from 1993-94 onwards, a period for which the DDP data are extracted; and also note that the absolute levels of income between regions do not differ much from a national perspective. This has happened inspite of the fact that the per capita DDP in Telangana excluding Hyderabad had lowest base levels, yet in recent years it occupies a position higher than Rayalaseema and lower than coastal Andhra. Source: GOI, Ministry of Statistics and Program Implementation. 2.3 Share of Income by Regions: Another way to compare the growth of income is to trace the changes in share of income per capita over the years. The annual growth of income often show sharp variations, therefore it is normal to 33 34 34 36 35 5 6 7 8 8 18 16 15 14 16 44 44 43 42 41 0% 20% 40% 60% 80% 100% 1993-94 1997-98 2001-02 2005-06 2007-08 (P) Figure 2.2: Regions contribution to State Gross Domestic Product (in %) Telangana Hyderabad Rayalaseema Coastal Andhra review long-term data by computing 3-year moving averages which normalizes annual high or lows and therefore one gets a fair understanding of the direction and quantum of change in growth in GDDP. The aggregates at the level of regions of AP and for the district of Hyderabad are presented separately (See Figure 2.2). It is instructive to note that, relatively speaking, Telangana (other than Hyderabad) and Hyderabad district have shown consistent increase in its share of GDP, for example, the share of Telangana which was only 33% during 1993-94 has increased to 35% during 2007-08. Similarly, the share has increased from 5% to 8% in case of Hyderabad. Consequently the respective share in coastal Andhra declined from 44% to 41% and from 18% to 16% in Rayalaseema region. It is important to note that the GDP growth in all regions excepting coastal Andhra has experienced accelerated growth especially since 2005 where as the growth of income in coastal Andhra has remained constant (See Figure 2.3). Source: GOI, Ministry of Statistics and Program Implementation. Note: Telangana excludes Hyderabad 7 7 14 4 13 6 8 -2 0 2 4 6 8 10 12 14 16 18 1994-97 1995-98 1996-99 1997-00 1998-01 1999-02 2000-03 2001-04 2002-05 2003-06 2004-07 2005-08 Percent Figure 2.3: Three Year Moving average growth rate of GDDP (constant prices, 1999-2000) by region Telangana Hyderabad Rayalaseema Costal Andhra 27 24 4 1 39 27 38 29 30 30 31 18 20 26 18 23 43 46 65 82 42 46 43 47 0 20 40 60 80 100 1993-96 2005-08 1993-96 2005-08 1993-96 2005-08 1993-96 2005-08 Telangana Hyderabad Rayalaseema Coastal Andhra Figure 2.4: Sectoral Contribution to GDDP by Region Agri. & Allied Industry Service Source: GOI, Ministry of Statistics and Program Implementation. Note: Telangana excludes Hyderabad 2.4 Regional Sectoral Share of GDDP: In the following, is a review of source of income according to the three broad sectors of the economy, namely, the primary or agricultural, manufacturing and services. The sectoral GDDP growth in Telangana has drawn a relative advantage in income generation both from industrial and services sectors compared to two other regions. In fact, it is the Telangana region excluding Hyderabad which has better income generation from industrial sector (30%) and possibly better employment as well and these have improved over time for better. Hyderabad, as expected, draws most (82%) of its income from services followed by the industrial sector. Source: GOI, Ministry of Statistics and Program Implementation. Note: Telangana excludes Hyderabad 143 125 113 211 159 154 188 334 94 1226 71 119 0 200 400 600 800 1000 1200 1400 0 50 100 150 200 250 Andhra Pradesh Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra No. of Accts per '000 population Amount outstanding per Acct (Rs.'000) 2.5 Scheduled Commercial Bank (SCB) Credit 2.5.01 Development Credit: One of the surest ways to assess the economic health of an area or region is to evaluate the credit utilization offered by the scheduled commercial (both public and private) banks (SCBs). The outstanding amounts with the SCBs can be considered an indicator of propelling business and income generating activities in a defined area. Note also that SCBs are the largest source of development credit both in agricultural and nonagricultural activities in India, probably next only to personal savings. Data discussed below are extracted from the data bank of the Reserve Bank of India (http://www.rbi.org.in). AP as a whole has registered an outstanding transaction of `2.29 lakh-crores through the scheduled commercial banks as on March 2009. As expected, Hyderabad has recorded the highest concentration of 211 bank account holders per thousand population, followed by 159 in Rayalaseema, 154 in coastal Andhra and somewhat less in Telangana (excluding Hyderabad) at 113 (See Figure 2.5). Accurate assessment of the size of economic activity driven by the banking sector can be undertaken by analyzing the amount outstanding per account. Although Rayalaseema has a slight edge over other regions in accounts, the outstanding amount is the least at `71 thousand followed by Telangana (excluding Hyderabad) at `94 thousand and `119 thousand in coastal Andhra. There is clear edge in access to banking and related activities in coastal Andhra Figure 2.5: SCB Accounts per thousand population and Amount Outstanding per account by regions in AP (As on March 2009) Source: Reserve Bank of India, 2010. Note: SCBs- Scheduled Commercial Banks. 49.3 85.8 38.2 59.0 53.4 93.3 45.6 33.4 43.1 54.5 -20 0 20 40 60 80 100 120 140 1998 - 2001 2001 - 2004 2004 - 2007 2007 - 2009 Figure 2.6: Growth in Amount Outstanding of SCBs by Regions - (Non-Agriculture) Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra region. However, if Hyderabad is included in Telangana region, there is a clear and large advantage as the amount outstanding is `334 thousand but note that the largest outstanding amount is for the city/district of Hyderabad which is over `12 lakh per account. An analysis of growth of credit amount and also credit per account of the nonagricultural credit of the SCBs suggest that a robust growth have taken place during the last about dozen years in Hyderabad. The Telangana area experienced considerable progress during the period 2001-04, but thereafter, there is decline (See Figures 2.6 and 2.7). On the other hand the trend growth in all other regions has been considerable during 2005-07 periods. However, there is a decline in the absolute amounts in the recent years (2007-09) suggesting sluggishness in the non-agricultural banking and associated economic activity all over AP. 36.8 61.5 41.3 42.8 9.8 59.0 44.1 35.5 49.4 46.9 -10 0 10 20 30 40 50 60 70 1998 - 2001 2001 - 2004 2004 - 2007 2007 - 2009 Figure 2.7: Growth in Amount Outstanding per Account of SCBs by Regions - (Non-Agriculture) Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra 85 48 18 127 43 21 110 59 32 0 20 40 60 80 100 120 140 Accts per thousand rural population (No.) Amount outstanding per Acct (Rs.000) Amount outstanding per Hectare GCA (Rs.000) Telangana Rayalaseema Coastal Andhra Source: Reserve Bank of India, 2010. Note: SCBs- Scheduled Commercial Banks. Note: These are positive growths, any positive growth rate means increase to previous year. 2.5.02 Agricultural Credit: Agricultural credit is one of the prime functions of commercial banks and is classified as a priority sector lending. Rayalaseema which is a relatively dry and rain-fed agricultural area has highest concentration of accounts at 127 accounts per thousand rural population, followed by coastal Andhra at 110 and Telangana at 85. But in terms of amount outstanding, coastal Andhra has considerable advantage over both Telangana and Rayalaseema. It is important to Figure 2.8: Agriculture Credit: Accts per thousand rural population, Amount Outstanding per account and per Hectare GCA of SCBs by regions (As on March 2009) Source: Reserve Bank of India, 2010. Note: SCBs- Scheduled Commercial Banks. Hyderabad is excluded from Telangana, GCA-Gross Cropped Area note that the need for agricultural credit is conditional upon the size of land holding, access to irrigation and also number of crops cycles grown in a year. Given the fact that coastal Andhra is highly irrigated and most of the cultivable land is under multiple often 3 crops cycles per year, the need for credit and turnover can also be relatively higher. However, the amount outstanding in Telangana is just over `48 thousand per an agricultural account which is higher than in Rayalaseema at `43 thousand, but far lower than coastal Andhra at `59 thousand (See Figure 2.8). It was possible to estimate SCB credit availability per hectare of gross cropped area (GCA). One can find a clear advantage in coastal Andhra at `32 thousand per hectare compared with `21 thousand in Rayalaseema and only `18 thousand in Telangana. There is a clear case to improve the credit availability for agricultural operations in Telangana region. Even Hyderabad has recorded agricultural credit by about `29 thousand account holders and the average outstanding is very high at `16.4 lakh per account. A trend analysis of the growth of agricultural credit (absolute amount) according to regions in AP suggests considerable growth since 1998 onward until about 2007 in all regions, especially in Telangana (See Figures 2.9 and 2.10). During this period, there has been an expansion of the coverage of agricultural credit in the whole of AP, therefore, one finds a somewhat lower growth in amount per account. 20 40 60 80 100 120 140 1998 - 2001 2001 - 2004 2004 - 2007 2007 - 2009 Percent Figure 2.9: Growth in Amount Outstanding of SCBs by Regions - (Agriculture) Telangana exc Hyd Rayalaseema Coastal Andhra 20 30 40 50 1998 - 2001 2001 - 2004 2004 - 2007 2007 - 2009 Percent Figure 2.10: Growth in Amount Outstanding per Account of SCBs by Regions - (Agriculture) Telangana exc Hyd Rayalaseema Coastal Andhra Source: Reserve Bank of India, 2010. Note: SCBs- Scheduled Commercial Banks Source: Reserve Bank of India, 2010. Note: SCBs- Scheduled Commercial Banks 2.5.03 Purpose of Development Credit: RBI provides the breakup according to the purpose of lending, such as, for agricultural operation in rural parts of the region, manufacturing, housing, personal loans, trade and so on. Such data for the most recent year ending March 2009 across regions are presented in Appendix 2.2. In case of practically all non-agricultural purposes, it is clear that the amount outstanding has been considerably high for Hyderabad. If one compares the three regions (excluding Hyderabad) coastal Andhra shows relatively larger amounts in outstanding followed by Telangana (excluding Hyderabad) and least is Rayalaseema. 2.6 Other Economic, Fiscal and Programme Indicators 2.6.01 The committee requested the government of AP to provide authenticated information on district level revenue generation through various sources (income) as well as amount spent on developmental activity (expenditures). The ‘revenue and expenditure’ from 1995-96 to 2008-09 have rows of entries under the heading ‘PAO-FOR/PWD’ and ‘Un-apportioned amount’. Thirty six per cent of all state expenditure is assigned to these two categories; and in case of receipts the ‘Un-apportioned amount’ is about 47 percent. These large chunks of expenditures and revenues cannot be assigned to districts and therefore regional analysis could not be undertaken. Therefore, in the following, an analysis is undertaken on specified fiscal information such as Sales Tax, FDI investments, extent of devolution of fiscal powers to the PRI institutions, expenditures on Sarva Shiksha Abhiyan etc. Additionally, road network and motor vehicle intensity is analyzed. All such variables together enunciate the health and vibrancy of the regional economies. 0 10 20 30 40 50 60 70 80 90 Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra 81.8 6.1 75.7 2.7 15.5 81.5 7.3 74.2 3.0 15.5 82.8 7.6 75.2 2.9 14.3 2006-07 2007-08 2008-09 Sales Tax Collection (` crore) 2006-07 `15587 2007-08 ` 19225 2008-09 ` 22152 2.6.02 Sales Tax Accruals by Regions In the year 2008-9, a total of just over `22 thousand crores was the sales tax accrual in Andhra Pradesh. Incidentally, almost 75% of this amount was collected from Hyderabad alone. The sales tax collection is undertaken as per the sales tax division and often one division can cover more than one district. However, broadly it can be said that excluding Hyderabad city, the business activity is concentrated in coastal Andhra where just about 15 % of all sales tax collection takes place. Tax collection in Telangana is about 8% and Rayalaseema is just about 3%. 2.6.03 Foreign Direct Investment Figure 2.11: Percentage Share of Sales Tax Collection across Regions of A.P Source: Statistical Abstract 2009, GoAP In the globalizing world access and investment of the FDI are considered excellent indicators not only of economic vibrancy, but also indicate the future direction of economic growth. Overall, the state of AP, so far, has attracted only `12,421 crores in FDI. Of which, `6490 crores of investment has taken place in Telangana (including Hyderabad), but with very high concentration in Hyderabad city/district. Given high concentration of infrastructure and other services in Hyderabad this is not surprising. Telangana region excluding Hyderabad has received only `1658 crores compared with `5499 crores investments in coastal Andhra. Rayalaseema has received just `732 cores of FDI investments so far 6490 1658 4832 732 5499 162 112 50 15 66 0 20 40 60 80 100 120 140 160 180 0 1000 2000 3000 4000 5000 6000 7000 Telangana inc Hyd Telnagana exc Hyd Hyderabad Rayalaseema Coastal Andhra No. of Units ` Crores Figure 2.12: Foreign Direct Investment in AP from 1991 to 2010 by Region Foreign Equity No. of Units Total FDI in AP=`12721 Crores (See Figure 2.12). Telangana receiving relatively lower amounts of FDI is chiefly due to the concentration of investments in Hyderabad city. Source: Data supplied to the CCSAP by GoAP 2.6.04 Devolution of Fiscal Powers to PRIs namely the ZPs, MPs and GPs AP is one of the few states with substantial devolution of powers and finances to its third tier of governance structure. The Handbook of Statistics published by the District Collectorate in each of the 22 districts (Hyderabad urban district is excluded) contains valuable information on receipts and expenditure for each level of PRIs namely the Zilla Parishads (ZPs), Mandal Parishads (MPs) and Gram Panchayats (GPs). Data for the most recent years 2008-09 or 2007-08 are highlighted below. The expenditures at the three levels of governance structures i.e., ZP, MP and GP are not mutually exclusive, but a review of them together does underscore the financial devolution and extent of independence on development expenditure at the grassroots. 377 606 230 292 450 248 66 268 115 58.9 33.1 56.1 0 10 20 30 40 50 60 70 0 100 200 300 400 500 600 700 Telangana Rayalaseema Coastal Andhra % ` Figure 2.13: Percapita Expenditure of PRIs (ZP, MP & GP) by region 2007-08 Zilla Parishad Mandal Parishad Grama Panchayats Avg Own Rev These data suggests that Rayalaseema is the most vibrant region with high per capita expenditures at all levels of Panchayati Raj governance structures. At the panchayat (GP) level, the per capita expenditure in Rayalaseema is as high as `268 compared with `115 in coastal Andhra and only `66 in Telangana. However, in case of ZPs and MPs, Telangana has recorded higher amounts than coastal Andhra yet much less than Rayalaseema. These estimates suggests that Telangana is the least devolved region, since the ZPs and MPs report relatively higher amounts of expenditure whereas the GPs spend considerably less compared to other areas. Rayalaseema stands out since the per capita expenditures are relatively high and there is also a considerable extent of devolution to the lowest level namely the GPs. Source: District Hand Books of respective districts of A.P. Note:1. Information for GPs of Adilabad, Nalgonda, Kadapa, Kurnool, Chittoor, West Godavari, Krishna, Prakasham and Nellore districts relates to the year 2008-09. 2. Warangal district has not reported data for MPs and GPs.3. Avg Own Rev - Average Own Revenue of panchayats for the years 2007-8, 2008-9 and 2009-10 CCSAP made a special effort through the AP state Government and collected information on own revenues generated by the GPs directly. For example, GPs are empowered to generate ‘own revenues’ through various village level taxes, such as property or house tax, taxes or tolls on vehicles, local license fees, building fees, layout fees, local auctions and private tap fees and Kolagarams and so on. The own revenues generated as a percentage to the total expenditures at the GPs is also a good indicator of financial devolution. It is further interesting to note that Telangana collects over 58% of all expenditures from local sources, 34.1 19.4 13.3 33.8 19.7 3.1 33.2 18.3 8.0 0 5 10 15 20 25 30 35 40 Women SCs STs % Figure 2.14: Representation of Women, SCs and STs in Panchyats across region of A.P. Telangana Rayalaseema Coastal Andhra which is commendable. Coastal Andhra is not far behind with 56%, while Rayalaseema is able to raise its own resources to the extent only of 33% which is rather low. The condition of Rayalaseema reflects low capacity to raise resources locally which could be due to the relatively poorer conditions of the households in this region. 2.6.05 Participation of Deprived in PRIs: Representation of women, SCs and STs in local governance is a good indicator to measure social justice. The data received from the districts was carefully consolidated. Due to scanty reporting of information on PRI participation of minorities, it was not possible to assess representation of minorities at the grassroots level governance structures (Figure 2.14). One finds fairly high participation of women as PRIs members and there is uniformity across regions. Similarly the share of SCs is considerably higher than the respective population shares in each region and again there is uniformity in levels of SCs participation across regions. In case of STs, their participation is just about 13% in Telangana, 8 % in coastal Andhra and a low of only 3% in Rayalaseema. These levels do reflect low shares in the respective populations. 2.6.06 Expenditures on Sarva Shiksha Abhiyan (SSA) Source: Primary data collected by CCSAP. Note: West Godavari data not-available A rare data set on the SSA expenditures, since inception until 2007-08, was accessed from the Human Resources Ministry, GOI. Total allocations for the state 42 39 19 3 40 39 36 20 3 41 0 5 10 15 20 25 30 35 40 45 Telangana inc Hyd Telangana exc Hyd Rayalaseema Hyderabad Coastal Andhra % Figure 2.15: Percent share in enrolment and expenditure under SSA (upto end of 2007-8) Share in Enrolment Share in Expenditure Cumulative Expenditure up to 2007-8 = `2079 crorerore of AP has been ` 3737 crores over the years until 2007-08, but the released and expended funds are 58% and 57% respectively. The released and expended funds are low due to procedural reasons which need to be worked out between the Ministry of Human Resources, GOI and the state government. What is relevant for our discussion is as to how much of the expended amount has reached the eligible child population. This has been done by comparing the regional shares in expenditures with respective shares in enrolment. The difference between these two will inform if there has been a positive or negative neglect in the SSA program. Telangana has 39% share in enrolments but somewhat less share at 36% in expenditure, but coastal Andhra has better enrolment at 40% and a bit higher share in expenditure at 41% (Figure 2.15). Although the differences appear miniscule, in terms of absolute number, the students affected due to lesser amounts of expenditures in Telangana can be decisive. Telangana, traditionally a low literacy region, needs somewhat higher allocations, at least in SSA, so that large deficits in literacy can be eliminated in a short period of time. 2.6.07 Backward Region Grant Fund (BRGF) The Government of India undertakes a review of the development of districts across India on a regular basis. The intention is to identify the most backward districts and infuse additional funds so as to make the backward districts catchup with other progressive areas across India. The National Planning Commission Source: SSA-Andhra Pradesh Annual Report, 2008-09; Geetha Rani (2010) identifies such districts under the Backward Region Grant Fund (BRGF) scheme. The following review of BRGF is made after consultations with senior officials of the Planning Commission and the Committee records its appreciation for their support. The BRGF has identified 250 backward districts spread over 27 states using multiple criteria. For example, all 200 districts covered by the National Rural Employment Guarantee Scheme (NREGS) in the first phase and 170 districts identified by the Inter-Ministry Task Group (IMTG) on Redressing Growing Regional Imbalances are included. Note that many districts are common in both these programmes. Further, many districts under Rashtriya Sam Vikas Yojana (RSVY) and the National Food for Work Programme (NFFWP) are also covered. The backwardness of a district is normally defined using three main parameters; ‘value of output per agriculture worker’, ‘agriculture wage rate’ and ‘percentage of SC/ST population’ of the district. Another factor considered as a special case is the presence of left wing extremism. For example, five districts in Andhra Pradesh namely Nizamabad, Karimnagar, Medak, Khammam and Nalgonda, which are all from Telangana region are included in the RSVY on the recommendation of the Ministry of Home Affairs. These left wing affected districts constitute 46 % population of Telangana (including Hyderabad) and about 19 % of the population of Andhra Pradesh. On the basis of other backwardness characteristics, four districts from Telangana, three from Rayalaseema and one from coastal Andhra are listed under BRGF. The BRGF population covered due to backwardness works out to be 41% (including Hyderabad) in Telangana, 74% in Rayalaseema and only 7% in coastal Andhra. Of the total 87% population covered by BRGF in Telangana, 46 % is covered under extremist affected districts selection criteria. Thus, a large percentage of population from Rayalaseema, relatively smaller percentage from Telangana and very small percentage from coastal Andhra were backward as per the BRGF backwardness identification criteria. Hence, the argument extended by some political parties and civil society groups from Telangana region does not get support from this analysis of the BRGF. 38.1 43.5 46.4 45.9 18.7 21.2 19.8 23.7 43.1 35.3 33.8 30.4 0 10 20 30 40 50 60 70 80 90 100 Rural Population Individuals in Job Cards Wage Employment Provided Expenditure Figure 2.16: Regional Shares under NREGS in AP Telangana Rayalaseema Coastal Andhra 2.6.08 Expenditures on the Mahatma Gandhi National Rural Employment Guarantee Scheme: National Rural Employment Guarantee Scheme is a major national flagship programme of income transfers to the poor which is well received by the people in rural areas. According to this programme, manual wage employment is offered for a maximum of 100 days in a year per household at the standard wage rate of `100 per day’s of work, for those who make a demand in writing. This programme is supported by legal entitlement and is being implemented all over India since 2008-9. The full two year data for regions in AP are presented in Figure 2.16. It is clear from Figure 2.16 that NREGA implementation is relatively better in Telangana compared with coastal Andhra. The number of job cards issued, wage employment provided and also expenditures is considerably higher than the share in rural population in case of Telangana and Rayalaseema. Whereas these shares are considerably lower in coastal Andhra. This may in fact reflect partly lower demand from the local communities for the NREGA work. For example, in coastal Andhra due to multiple cropping, the poorer households do get larger number of man days of wage employment from local farming households. Therefore, the demand for NREGA work could also be low due to the local wage rates which are relatively higher than the NREGA wage rates in coastal Andhra. Source: Web link- http://nrega.ap.gov.in. Note: For universalized period 2008-09 and 2009-10. 93 71 252 54 72 18 9 75 5 7 4 3 9 3 4 16 14 31 15 15 0 50 100 150 200 250 300 Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra No. of vehicles Figure 2.17: Motor vehicles per '000 population across regions of A.P.-2009 Two WV Four WV Four WGV - H&M All Other Vehicles 2.6.09 Motor Vehicular Strength, Road Length and Transportation The registered motor vehicles in a region are a good indicator of economic prosperity, intensity of business activity and social development. AP state has about 9.2 million motor vehicles of various types. The following discussion is based on number of specified vehicles per one thousand population across regions. Given a vast diversity in types of vehicles and their use, the following categories are created: (1) Two WV- two wheelers such as motorcycles, scooters and mopeds; (2) Four WV- four wheelers such as cars, vans and other LMVs; (3) Four WGV H&M- four wheel medium and heavy goods vehicles, cranes etc.; and (4) All Other Vehicles including auto rickshaws, maxi cabs and tractors (See Figure 2.17). It goes without saying that the vehicle intensity is more in Hyderabad. However, if Telangana (excluding Hyderabad) is compared with coastal Andhra, one sees uniform intensity amongst regions excepting that the LMVs are relatively more in Telangana. Rayalaseema has low intensity of motor vehicles in all categories. Source: Transport Department, GoAP, Note: Two WV- Two Wheel Vehicles, Four WV – Four Wheel Vehicles, Four WGV H&M – Four Wheel Goods Vehicles Heavy & Vehicles , All Other Vehicles include auto rickshaws, maxi cabs, tractors, etc., 2.6.10 Road Infrastructure: In the following is an analysis of differentials in road infrastructure. There are three types of roads, namely, national highways, PWD (state) roads and panchayat (rural) roads. Each one of them is so identified mainly from the point of ownership and maintenance of these roads, but they also reflect qualitative dimensions of the accessibility of roads for business, markets and people at large. Data for Hyderabad city is not used due to extremely high concentration of roads in that area. The intensity of national highways during the recent years has been relatively high in coastal Andhra and Rayalaseema compared with Telangana (Figure 2.18a). This is mainly due to the geographic advantage exploited by the Golden Quadrilateral National Highway which passes through both these regions. However, the intensity of PWD roads is relatively higher in coastal Andhra compared to both Rayalaseema and Telangana (Figure 2.18b). Most important for the people at large, especially those living in rural areas are the panchayat roads. The concentration and length of panchayat roads reflects the economic and social well being of the people living in rural areas. In this regard Telangana has done very well, in fact somewhat better than coastal Andhra. The road length intensity in Telangana has grown considerably during the past two decades and more (Figure 2.18c). One gets a qualitative perspective if the transport intensity is measured according to type of road and type of vehicle, which is presented in Figure 2.18d. Telangana has recorded highest utilization of its national highways compared to other regions and it has about the same intensity of use of the PWD roads as coastal Andhra. However, the use of panchayat roads is better in coastal Andhra compared to Telangana region. Thus coastal Andhra has shown greater inclusiveness in terms of the use of physical infrastructure found in its panchayat level road networks. 0 5 10 15 20 25 1990 1995 2000(P) 2005 2008 Kms. Figure 2.18 a: Trend in Road Length per '000 sq.kms by Region - National Highways Telangana ex Hyd Rayalaseema Coastal Andhra National Highway Road length in 2009 (Kms.) Telangana excl. Hyd 1542 Rayalaseema 1243 Coastal Andhra 1824 50 100 150 200 250 300 1975 1980 1985 1990 1995 2000(P) 2005 2009 Kms. Figure 2.18b: Trend in Road Length per '000 sq.kms by Region - PWD Roads Telangana ex Hyd Rayalaseema Coastal Andhra PWD Road length in 2009 (Kms.) Telangana excl. Hyd 23135 Rayalaseema 15931 Coastal Andhra 25162 200 250 300 350 400 450 500 550 1975 1980 1985 1990 1995 2000(P) 2005 2009 Kms. Figure 2.18 c: Trend in Road Length per '000 sq.kms by Region - Panchayat Roads Telangana ex Hyd Rayalaseema Coastal Andhra Panchayat Road length in 2009 (Kms.) Telangana excl. Hyd 58612 Rayalaseema 25025 Coastal Andhra 45681 528 131 51 267 73 45 487 135 72 0 100 200 300 400 500 600 Vehicles (excl. two wheelers) per Km. on NHs All types of Vehicles per Km. on PWD roads Vehicles (excl. Heavy) per Km. on Panchayat roads Vehicles Figure 2.18d: Intensity of Vehicles per Km. of road length across regions - 2009 Telangana ex Hyd Rayalaseema Coastal Andhra Source: Statistical Abstract of AP, GoAP 2.7 Agriculture, Irrigation and Productivity 2.7.01 Growth in Agriculture Agriculture is still the primary occupation for millions of farmers and wage laborers in AP. In the following is a discussion relating to changes in gross cropped area (GCA) across regions of A.P. during the period 1956 to 2009. Broadly, it is well known that due to natural advantage of irrigation from Godavari and Krishna rivers, coastal Andhra region has a relative advantage in irrigation and agriculture. The GCA in coastal Andhra region was an average of 5.3 million hectares during 2006-9 compared with 4.2 million in 1956-60, a 20% growth during the past 5 decades. Telangana region had 4.8 million hectares of land under cultivation during 1956-60 which has increased to 5.0 million hectare or a meager 5% increase during the same period. However, the situation in Rayalaseema has been one of decline (about 6%) in the GCA with only 3 million hectares as on 2006-9. Thus, one notices stagnation in GCA expansion in Telangana, a decline in Rayalaseema but an increase in coastal Andhra region. However, a better understanding of the growth in agriculture can be derived from the pattern of growth in irrigation and land productivity taken together, as found below. Table 2.3: Gross cropped area across regions of A.P (5 year moving averages / Million Hectares) Region 1956- 60 1961- 65 1966- 70 1971- 75 1976- 80 1981- 85 1986- 90 1991- 95 1996- 00 2001- 05 2006- 09 Telangana 4.8 4.8 5.0 5.3 5.0 5.1 4.8 4.7 4.8 4.7 5.0 Rayalaseema 3.2 3.2 3.0 3.1 2.9 2.8 2.7 3.0 3.0 2.9 3.0 Coastal Andhra 4.2 4.6 4.6 4.6 4.7 4.8 5.0 5.3 5.3 5.0 5.3 Source: Directorate of Economics & Statistics, Go AP. Definition: Gross Cropped Area - the total area sown once and/or more than once in a particular year, i.e. the area is counted as many times as there are sowings in a year. 0 1 2 3 4 5 6 1956-60 1961-65 1966-70 1971-75 1976-80 1981-85 1986-90 1991-95 1996-00 2001-05 2006-09 Million Hectares Figure 2.19: Gross cropped area across regions of A.P. Telangana Rayalaseema Coastal Andhra 0 5 10 15 20 25 1956-60 1961-65 1966-70 1971-75 1976-80 1981-85 1986-90 1991-95 1996-00 2001-05 2006-09 Lakh Hectares Figure 2.20: Net Irrigated Area by Region Telangana Rayalaseema Coastal Andhra 0 10 20 30 40 50 60 70 1955-56 1964-65 1974-75 1984-85 1994-95 2004-05 2008-09 Percent Figure 2.21: Trends in Irrigation Intensity across Regions of A.P. Telangana Rayalaseema Coastal Andhra 2.7.02 Growth in Irrigation Irrigation is the key to growth in agriculture, especially, if it is dependent entirely on the swings of weather and rainfall. There are mainly three ways through which irrigation water can be ensured for cultivation, (a) canal irrigation, (b) tank Source: Directorate of Economics & Statistics, GoAP. Definition: Net Irrigated Area – the area irrigated through any source once in a year for a particular crop. irrigation and (c) well (energized) irrigation. In the following is an analysis of growth in irrigation in the three identified regions of AP. 2.7.03 The Net Irrigated Area (NIA) in all the three regions of AP has increased over the years. In fact the NIA in Telangana has doubled (from 0.8 million hectares in 1956-60 to 1.7 million hectares to by 2006-09). Thus Telangana has experienced a whopping 113% increase; while coastal Andhra and Rayalaseema have experienced a much lower growth of NIA at 30% and 55% respectively. Telangana has experienced a remarkable increase in NIA after mid- 1970s compared to the other two regions where there is a steady increase over time. 2.7.04 Irrigation Intensity: Another way to understand improvement in irrigation is to study ‘irrigation intensity’ which is the ratio of gross irrigated area to gross cropped area across regions. About the time of reorganization of AP in 1956, coastal Andhra had highest irrigation intensity of 44.7% compared to Telangana with only 17.2% and Rayalaseema at 14.7%. However, the irrigation intensity improved to 50.4% in Telangana, 60.6% in coastal Andhra and a meagre 25.3% in Rayalaseema by 2008-9. The increase in irrigation intensity in coastal Andhra and Rayalaseema has increased by 16 percentage points and 10 percentage points, respectively, over the period of 53 years; whereas Telangana experienced over 33 percentage points increase during the same period. In fact, the irrigation intensity in Telangana doubled during the 23 years period beginning mid 1980s. 2.7.05 Type or Source of Irrigation: It is useful to find out increase in the NIA by different water sources across the regions of AP (refer Figures 2.22 to 2.24). However, natural reasons appear to dominate in the existence of irrigation opportunities as well as the growth possibilities in future. Given that most of the central parts of coastal Andhra region is located in between the river Godavari in the north and river Krishna in the south, there are natural factors that have offered extensive possibilities of expanding irrigation through canal system, mostly due to the advantage of delta and the natural gradient which can be exploited very well by canal irrigation. On the other hand, both the Telangana and Rayalaseema regions are not able to access river waters due to lack of gradient. But the natural advantage of ‘tank’ irrigation was present in case of Telangana, whereas this opportunity was even less in Rayalaseema. Thus Rayalaseema is the most disadvantaged in terms of access to irrigation of any type in the state of AP. However, two third of irrigated area in coastal Andhra was through canals at the time of reorganization, whereas, it was only 16% in Telangana and 19% in Rayalaseema. A cause of concern is that surface water irrigation through Tanks has declined significantly from over 64% in 1955-56 to just 12% in 2008-09 in Telangana. The trend is similar in Rayalaseema with respect to decline in irrigation from surface/tanks. The reasons for decline in tank irrigation have been explored at greater length in the Chapter on irrigation. The puzzle is in coastal Andhra, where the canal and tank irrigation has declined by about 10 percent, each over a period of 53 years, and even in this region bore well (energized) irrigation which was insignificant (4%) in 1955-56 has increased to 25 percent. Due to the natural advantages, both surface and underground water sources contribute to the irrigation system in coastal Andhra, whereas, in Telangana and Rayalaseema regions irrigation is highly dependent on underground water source. 0 20 40 60 80 100 1955-56 1964-65 1974-75 1984-85 1994-95 2004-05 2008-09 Percent Figure 2.22: Net Area Irrigated by Source in Telangana Canals Tanks Wells Others 0 20 40 60 80 100 1955-56 1964-65 1974-75 1984-85 1994-95 2004-05 2008-09 Percent Figure 2.23: Net Area Irrigated by Source in Rayalaseema Canals Tanks Wells Others 0 20 40 60 80 100 1955-56 1964-65 1974-75 1984-85 1994-95 2004-05 2008-09 Percent Figure 2.24: Net Area Irrigated by Source in Coastal Andhra Canals Tanks Wells Others Source: Source: Directorate of Economics & Statistics, GoAP 0 4000 8000 12000 16000 20000 1962-65 1970-73 1980-83 1990-93 2003-06 Rupees at 1990-93 prices Figure 2.25: Land productivity acorss regions in A.P. (output per hectare of net sown area) Andhra Pradesh Telangana Rayalaseema Coastal Andhra 2.7.06 Changes in Land Productivity (LP) Improvement in land productivity over time is a good indicator of progress in agriculture in a geographic area. In the following we present the rupee values of the agricultural output per hectare net sown area at 1990-93 constant prices across regions of AP (See Figure 2.25). Overall land productivity has shown a considerable increase across all regions of AP. During the period 1962-65, the LP Source: Estimated from raw data accessed from G. S. Bhalla and Gurmail Singh. Refer also Bhalla and Singh (2009), Economic Liberalization and Indian Agriculture: A State wise Analysis, Economic and Political Weekly, Vol.XLIV:52 in Telangana was least at `3320, compared to Rayalaseema at `4795 and coastal Andhra the highest at `7422. However, the growth rates in LP are not uniform across the regions; for example, while the LP growth in Telangana was as high as 327 percent increase in 2003-06 over 1962-65; during the same period the growth in coastal Andhra was 149 percent and in Rayalaseema it was much lower at 84 percent. Another way to have a relative picture is that the LP of Telangana which was little less than half of the level in coastal Andhra in 1962- 65, was as much as three fourths in 2003-06. Thus, Telangana has shown large improvements in output per hectare during the last 5 decades or so and it is consistent with growth in irrigation as well (see below). The growth in productivity in ‘rice’, ‘ground nut’ and ‘cotton’ since 1956 until 2006 is presented in Appendix 2.3. It is clear that Telangana region had experienced unprecedented growth in per hectare production of rice soon after the creation of a united AP. For example, Telangana region recorded a 70% increase in rice production per hectare between 1956-65 and 1965-75 compared with only 39 % and 20% respectively in coastal Andhra and Rayalaseema regions. Thereafter, Telangana has indeed sustained productivity growth in rice over the period until about 2006, for which, we have reviewed the data. On an average, the Rayalaseema region was unable to catch up with the productivity growth in rice compared with other two regions over the last five decades or so. A review of productivity per hectare growth over the same period in ground nut and cotton suggest an advantage in Telangana over coastal Andhra and a larger advantage compared with Rayalaseema. Thus, it can be clearly established that the condition of residents of Telangana region (other than Hyderabad) has, indeed, experienced larger improvements during the past half a century and it has caught up with the broad economic conditions prevailing in coastal Andhra. This is possible only when the relative growth in the identified indicators has been much faster in Telangana compared with coastal Andhra and Rayalaseema regions. 2.7.07 Operational Land Holdings Given that AP is still an agrarian economy where over 60% of labor force is employed, it is useful to find out distribution of land holdings across the regions. It is clear that there is a trade-off between the size of land holding and the percentage of land owned which is irrigated. Both Telangana and Rayalaseema have larger average size of land holding,1.3 hectare and 1.6 hectare respectively, whereas the size of land holding in coastal Andhra is much lower at 0.9 hectare (Table 2.4). Further, one can notice that coastal Andhra has 57% of all its area under land size of less than 2 hectares compared to 41 % in Rayalaseema and 46% in Telangana; similarly larger land sizes share is much less in coastal Andhra compared with Rayalaseema and in Telangana. The dramatic differential is found in case of percentage gross irrigated, Coastal Andhra having the largest advantage of having 56% of all its operational land area under irrigation, and this share is 46% in Telangana and as low as 24% in Rayalaseema. Table 2.4: Agriculture Operational Land Holdings across regions in AP (2005-06) Region Area (% share of all Size Classes) Holdings (% distribution) Avg Size (Hects) % Irrigated < 2 Hects. > 5 Hects. < 2 Hects. > 5 Hects. Andhra Pradesh 48.4 18.5 100.0 100.0 1.2 44.9 Telangana 46.1 20.2 39.2 46.6 1.3 45.9 Rayalaseema 40.9 22.2 17.0 29.1 1.6 24.5 Coastal Andhra 57.2 13.4 43.8 24.3 0.9 56.2 Source: Statistical Abstract 2009, GoAP. % irrigated is percentage of gross irrigated area to gross cropped area 2.8 Use of Electricity 2.8.01 Access and use of electricity is a good indicator of progress in a region. In the following discussions we explore utilization of (1) electricity for ‘agriculture’, (2) ‘low tension electricity’ and (3) ‘high tension electricity’. The last two categories highlight qualitative dimensions of electricity use in different regions of AP. 2.8.02 Electricity consumption per agricultural connection, for the year 2008-9, works out to be within a reasonable range in all the three regions, although it has been high in Rayalaseema at 6346 kwh compared with 5920 kwh and 5797 kwh for Telangana and coastal Andhra respectively. However, Telangana has experienced large gains, for example, the per agricultural connection consumption in 1974-5 was only 1898 kwh which increased to 5920 kwh by 2008-9, a 3 fold increase; as compared with coastal Andhra which has improved from 3323 kwh to 5797 kwh, only a 1.8 fold increase during the same period. Rayalaseema region which received least amount of rainfall in AP has also experienced just about three times growth in consumption of electricity per agricultural connection. Similar trend is noticed when electricity consumption per hectare of net area irrigated is reviewed. In Telangana, the consumption has increased from 260 Kwh in 1974-5 to 4930 Kwh in 2008-9, thus registering 18 times increase; on the other hand in coastal Andhra the increase has been only 10 times. Rayalaseema has also registered a considerably larger sixteen times increase in consumption of electricity per hectare of irrigated land. 2.8.03 The trends in consumption and growth of ‘low tension’ and ‘high tension’ electricity are presented below. The growth in use of electricity of both types follows a similar trend in which the Telangana region has experienced large increases next only to the city of Hyderabad 1974-5 to 2008-9 (See Figure 2.26, 2.27, 2.28 and 2.29). Table 2.5: Electricity Consumption of Various Types by Regions in AP (Kwh) (a) Agriculture Power Consumption Region 1974-75 1984-85 1994-95 2004-05 2008-09 Per hect . NIA Per agri connec tion Per hect. NIA Per agri connec tion Per hect . NIA Per agri conne ction Per hect. NIA Per agri connec tion Per hect. NIA Per agri conne ction Telangana 260 1898 876 2531 5118 7132 5716 5193 4930 5920 Rayalaseema 350 2136 821 2741 4780 7159 5751 5889 5887 6346 coastal Andhra 117 3323 141 2586 907 7139 1454 6781 1326 5797 (b) Per Capita Low Tension Electricity Consumption Region 1971-72 1981-82 1991-92 2001-02 2008- 09 Telangana 16 39 238 407 494 Hyderabad 52 103 180 234 758 Rayalaseema 31 46 183 299 409 coastal Andhra 22 41 102 212 306 (c) Per Capita High Tension Electricity Consumption Region 1971-72 1981-82 1991-92 2001-02 2008- 09 Telangana 15 67 144 125 285 Hyderabad 77 222 100 75 331 Rayalaseema 17 47 73 65 163 coastal Andhra 37 67 75 67 172 Source: Directorate of Economics and Statistics, GoAP. Note: Telangana excludes Hyderabad, NIA – Net Area Irrigated -50 0 50 100 150 200 1975-1985 1985-1995 1995-2005 2005-09 Percent Firure 2.26: Growth of Electricity consumption per agri connection Telangana Rayalaseema Coastal Andhra Andhra Pradesh 0 100 200 300 400 500 600 1971-1981 1981-1991 1991-2001 2001-2009 Percent Figure 2.27: Growth rates in percapita electricity (LT) consumption Telangana Hyderabad Rayalaseema Costal Andhra 0 5 10 15 20 25 30 35 1971-1981 1981-1991 1991-2001 2001-2009 Figure 2.28: Growth rates in percapita electricity (HT) consumption Telangana Hyderabad Rayalaseema Costal Andhra Source: Directorate of Economics and Statistics, GoAP. 87 86 97 92 90 0 10 20 30 40 50 60 70 80 90 100 Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra % Figure 2.29: Percentage of HHs Electrified across Regions 2004-05 0 10 20 30 40 50 60 1961 1971 1981 1991 2001 Percent Figure 2.30: Work participation rate across regions in A.P. Andhra Pradesh Telangana Rayalaseema Coastal Andhra Source: HDPI, 2004-5 2.9 Work Participation Rates and Employment 2.9.01 Work Participation Rates (WPR): There is a general trend of declining work participation rates in India, and this gets reflected in all the regions in AP. Note that the WPRs do not reflect employment and unemployment conditions due to definitional variations. For example, the WPR which was 54% in 1961 has declined to 45% level by 2001 in Telangana; and a similar decline has also occurred in the two other regions. However, in 2001 highest WPR is found in Rayalaseema at about 48% and both coastal Andhra and Telangana have recorded WPR just at about 45% each (See Figure 2.30). A Source: Census of India, 2001 0 10 20 30 40 50 60 Andhra Pradesh Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra 45.8 45.4 47.7 29.2 47.7 45.4 56.2 53.8 54.8 47.3 57.2 58.2 35.1 36.8 40.5 9.9 37.8 32.4 % Persons Males Females relatively higher WPR is generally considered a sign of distress rather than an indication of employment in India. Figure 2.31: Work Participation Rate by Gender across regions in A.P. (2001) Source: Census of India 2001. Generally the WPRs differ substantially between men and women. Customarily, in India, adult men are considered the primary bread earners and women earners are found either as educated employed or as family and / or distress workers in agricultural and manual wage earning activities. In Figure 2.31 one can clearly find out large difference in WPRs 2001 between men and women in all regions and largest difference is in Hyderabad. In rural areas generally women work on own family farm or as wage laborers which is reflected in relatively higher WPRs of women especially in Telangana. However, the male WPR is highest in coastal Andhra followed by Rayalaseema and Telangana. Besides the largest gap between men and women WPRs is found in coastal Andhra region. 11 9 35 10 8 10 9 15 9 9 21 24 0 32 20 34 38 0 30 38 12 12 15 9 12 12 9 35 10 13 0 10 20 30 40 50 60 70 80 90 100 Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra % Figure 2.32: Broad occupation groups for workers by region (2007-8) Professionals Craft/Artisans Farming Agri labour Non Agril & Elementary Trade & Others 2.9.02 Occupation profile of workers (15-65 years) The NSSO 64th round data, with the reference years 2007-08, are good to understand the variation in occupations across the regions. Telangana has similar occupational distribution to coastal Andhra with slightly lower reporting in trade and other occupations (referred to as ‘Others’), but higher reporting as farmers. Rayalaseema has a much larger share reporting farming and fewer percentages reporting agricultural labour which is due to the inferior quality of land and relatively poorer communities also owning such land for subsistence survival. As expected, Hyderabad is dominated by professionals at 35% of the labour force followed by another 35% engaged in trading and other activities (See Figure 2.32). Compared to other regions, Hyderabad also employs craftsmen and those in elementary services such as urban manual labour and semi-skilled service providers. 2.9.03 Educated labour force / workers The NSSO data allows us to anlayse work status based on education levels. Of the total workforce 15-65 years of age, only 9% are above matriculation in Telangana, yet it is slightly more than in coastal Andhra and Rayalaseema. Hyderabad workforce is the most literate as expected which is closer to one half of all 15-65 years old. Share of illiterate workforce and women workers is almost similar in all the three regions with a slightly lower level in coastal Andhra. Source: NSSO 64th round survey 52 47 60 42 46 10 8 14 9 8 8 13 0 23 7 3 4 0 1 6 2 3 0 1 3 25 25 26 24 30 0 10 20 30 40 50 60 70 80 90 100 Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra % Figure 2.33: Above Matriculate workers by occupations (2007-8) Professionals Craft/Artisans Farming Agri labour Non Agril & Elementary Trade & Others Table 2.6: Workers by level of education and gender by Regions 2007-8 (Percent) Region Illiterate Up to Matriculation Above Matriculation Women Workers AP 48.3 41.6 10.0 37.6 Telangana inc Hyd 49.4 38.0 12.6 37.1 Telangana exc Hyd 52.6 38.4 9.0 39.2 Hyderabad 18.0 34.1 47.9 17.1 Rayalaseema 50.0 42.5 7.4 39.6 coastal Andhra 46.5 44.7 8.8 37.2 Source: NSSO 64th round Survey 2.9.04 Education and Employment: To understand the impact of education on the nature of employment, an analysis was undertaken separately for the educated labour force, those up to matriculation and those above matriculation. One sees a clear impact of education in the choice of occupations but differentials between the regions are minimal. For example, those educated above matriculation have clearly chosen to be professionals of various types across all regions with similar shares in Telangana and coastal Andhra, followed by trading and business with a slight edge in coastal Andhra (See Figure 2.33). It is only in Rayalaseema that the share of educated is also as high as that of farmers at over 23%. The share of educated in farming is only 10% in Telangana and 13% in coastal Andhra suggesting relatively better employment opportunities in non agricultural occupations in both Telangana and coastal Andhra region compared with Rayalaseema. As educational levels increase, people do not undertake semi skilled non-agricultural professions as is reflected in low levels across all regions. Source: NSSO 64th round survey 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Telangana Rayalaseema Coastal Andhra Telangana Rayalaseema Coastal Andhra 1993-94 2004-05 Figure 2.35: Employment share by type and region (2004-05 and 1993-94) Cultivator Agri. Labourer Non-Farm Manual Worker Non Farm Self Emp. Salaried & Others 10 9 15 12 8 14 13 19 11 13 20 22 0 34 21 28 30 0 18 30 13 13 15 10 13 17 13 52 15 17 0 10 20 30 40 50 60 70 80 90 100 Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra % Figure 2.34: Upto Matriculate workers by occupations (2007- 08) Professionals Craft/Artisans Farming Agri labour Non Agril & Elementary Trade & Others The work profile of those with less education than matriculation is similar to the general trends of occupational distribution undertaken above (See Figure 2.34). It appears that, at lower levels of education the labour force is trapped in traditional and low paid work, whereas at least matriculation and above matriculation level education grants them opportunities to move on to better paid employment and this trend is uniform across the regions with little disparity. Source: NSSO 64th round survey Source: Human Development Profile in India, 1993-4 – 2004-5, National Council of Applied Economic Research, New Delhi 2.9.05 Occupation and Employment: The NCAER surveys are useful in finding out the share of labour force in a particular type of employment and how this has changed during a 12 year period – between 1993-94 to 2004-5. In the following is a two time period comparison of some rare data regarding employment shares in rural parts of the regions of AP. The identified occupational classifications are ‘cultivator’, ‘agricultural labour’, ‘non-farm manual worker’, ‘self employed other than agriculture’, and ‘regular salaried workers’. The comparison periods are 1993-4 and 2004-5. Note that often households undertake multiple occupations and the above categories are formed on the basis of ‘maximum annual income’ drawn from a particular source. In all three regions, those reporting cultivation as their primary occupation have recorded a decline over the time period. For example, in Telangana it declined from 39% to 25%; in coastal Andhra it fell from 25% to 21% and in Rayalaseema it declined from 48% to 39% (See Figure 2.35). Thus occupational diversification or movement away from cultivation has occurred in both Telangana and Rayalaseema; whereas this change in coastal Andhra region is small. But, what is revealing is the fact that considerably larger proportions have reported themselves as agricultural labourers in Telangana which has increased from 38% to 47%, and in Rayalaseema this share has increased from 24% to 39%. In coastal Andhra region, the share of agricultural labour has increased only by about one percent. Telangana and coastal Andhra have also experienced a small increase in non-farm manual work during this period. Rural non-farm self employment has remained unchanged in Telangana and Rayalaseema regions and it has recorded a decline of 4 % percentage points in coastal Andhra. Further, Telangana region has recorded a considerable increase in households with regular income, followed by a smaller increase in coastal Andhra; but Rayalaseema has shown a large decline in occupations reporting regular income. Overall, the review of occupational shifts suggests proletarianization of work force mostly in agriculture. So far as dynamism and diversification of labour is concerned, it is found mainly in Telangana compared with the two other regions, and this can be considered a positive condition for improving and sustaining household incomes. 0 20 40 60 80 100 120 140 Andhra Pradesh Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra 94 122 123 117 104 79 Persons Figure 2.36: Live Register Enrollment in Employment Exchanges across Regions of AP (Persons/1000, 20-35 years: as on December 2008) Source: Statistical Abstract 2009, GoAP. 2.9.06 Employment Generation through Employment Exchanges: It is common practice for the state governments to promote registration of names for those who are unemployed or searching for a higher level of employment. Generally all districts maintain an employment exchange centre, where such registrations are undertaken and information with respect to the level of education and social groups is recorded. Telangana region (excluding Hyderabad) has recorded higher registration in the employment exchanges, 123 per thousand population compared with only 104 in Rayalaseema and 79 in coastal Andhra (See Figure 2.36). What is not clear is whether those registered are seeking new employment (with the current status of unemployed) or are pursuing higher level or better paid jobs. It may be emphasized that these data do not support the unemployment status of the candidates who have registered in the employment exchanges. An analysis of the registered candidates according to education suggests the following distribution: Post graduate 3.7%, Graduates 12.8%, Intermediates 32.5%, Matriculates 14.7%, Technical/ITIs 11.4%, Other Technical (typist etc) 14.4%, Unskilled 10.5%. Similarly, a social group distribution of those on the live register is SCs 26%, STs 8.7%, BCs 41%, and Others 24.3%. The employment exchanges provide very small amounts of employment for those who have registered. For example total employment provided during 2008 was 12308 11422 886 3844 13284 33 33 44 20 25 0 2000 4000 6000 8000 10000 12000 14000 0 10 20 30 40 50 Telangana incl Hyd Telangana exc Hyd Hyderabad Rayalseema Coastal Andhra Number Number Figure 2.37: Worker per factory across regions of A.P (as on Dec 2007) No. of Factories Worker Per Factory only 1045 of which 183 were SCs, 73 STs and 283 BCs. Note that total enrolled on the live register were 20.7 lakhs as on December 2008. Therefore, the employment exchanges hardly address the issue of unemployment, at least in AP. 2.9.07 Industrial Employment: AP is one of the fast growing industrial and manufacturing states of India. There are 29436 industrial establishments registered under the Factories Act which employ a total of 8.24 lakh workers. It is useful to know that there are 13284 registered factories functioning in coastal Andhra (large number of rice mills) compared with 12308 in Telangana area including Hyderabad. However, per factory, workers are 33 in Telangana, 44 in Hyderabad city and 25 in coastal Andhra region. Thus from the point of view of industrial and manufacturing activity, so far as number of factories and workers is concerned, there is a degree of comparability between Telangana and coastal Andhra. It would be useful if total output or value added is studied to find out any real differentials between the regions of AP. Rayalaseema has less number of factories and it also employs a lower number of the workforce. Source: Statistical Abstract, GoAP 2.9.08 Migration: Migration is often considered as an opportunity to work and earn higher household income; it also facilitates social mobility, higher education and better quality of living. Often, migration occurs from smaller towns and rural areas to larger urban locations. In the following, we draw upon one of the most recent surveys of the NSSO which has rich data on migration; both outmigration and in-migration. Migration, which is not related to marriage and family reasons, is considered as the one for employment and education. Further, it was possible to identify intra-district migration which is not included so as to get a better picture of inter-district or from outside the district in-migration and outmigration to places outside the district of residence. It is interesting to note that it is the city of Hyderabad which has recorded least outmigration at 4.4 % of households or 1.8 per cent of population, whereas it has attracted about 11% of all households as the new entrants to the city constituting 3.6% of the population (See Table 2.7). Telangana (excluding Hyderabad) and Rayalaseema regions have similar percentage of 0.4% migrant households, whereas coastal Andhra has slightly higher at 0.7%. However, Rangareddy district which has been experiencing the spillover effect of the urban growth of Hyderabad has recorded the highest of all districts (excluding Hyderabad) at 2.8%, of all its households being immigrants. Thus, it is the city of Hyderabad followed by Rangareddy district in Telangana region which is attracting large number of in-migrants; whereas out migration is comparable to the other regions. By and large, both coastal Andhra and Rayalaseema have recorded similar and relatively low levels of out-migration and in-migration. Table 2.7: Distribution of Out of District Migrants by Regions in AP 2007-08 (Percent) Region OUT-MIGRATION REASONS OF OUT-MIGRATION IN-MIGRATION HHs Reporting Migration Migrant Persons Job Search Employment Studies Others HHs Reporting Inmigration Person Inmigrants Andhra Pradesh 6.8 3.2 20.2 67.4 10.2 2.1 1.0 0.6 Telangana inc Hyd 6.7 2.9 23.2 66.8 9.1 2.7 1.7 0.7 Telangana exc Hyd 7.1 3.1 21.5 66.8 9.3 2.5 0.4 0.3 Hyderabad 4.4 1.8 20.2 67.7 7.1 5.1 10.6 3.6 Rayalaseema 7.8 3.3 22.7 64.1 11 2.2 0.4 0.3 Coastal Andhra 6.4 3.4 17.7 69.6 11.3 1.5 0.7 0.5 Source: Computed from NSSO 64th Round data. Note: HHs: Households. Marriage and family related migration is not considered in this analysis. PART II: EQUITY AND SOCIO-ECONOMIC DIMENSIONS 2.10 Economic Inequalities In this section, some qualitative evidence on income change and equity issues is discussed. As opposed to the unitary variable descriptions and analysis in the previous section, the empirical analysis below is based on bivariate and multivariate analytical techniques. In the following, empirical evidence is extracted from the NCAER’s Human Development Surveys conducted about a decade apart and inequalities are presented in per capita income and cultivable land. Inequalities in per capita consumption expenditures are estimated from the NSSO’s 64th round data for the reference year 2007-08. 2.10.01 Dynamics of Regional Rural Income inequalities The following is qualitative information regarding income change over a period of over a decade in the rural parts of AP analyzed at regional levels. The data presented below is drawn from two large sample surveys conducted by the National Council of Applied Economic Research, New Delhi, about one decade apart. The first human development survey was undertaken across rural India in 1993-4 and a follow-up survey was conducted during 2004-5. This data is amenable for creating state profiles of human development, poverty and income change. In the following, we compare the direct per capita income change for the three identified regions of AP. Note that data for Hyderabad city is not used in this analysis. The income data discussed below are those reported /estimated through a comprehensive household questionnaire and therefore should not be compared with the per capita income extracted from the National Accounts Statistics reviewed in earlier sections. However, one can compare broad trends emerging from these two independent sets of data so as to improve an understanding of the dynamics of income change and equity. 2.10.02 Per capita Income Change by Economic Class: Figure 2.38 presents the rural per capita income change between the two periods for the three regions according to income class. The rural households are sub-divided into five categories based on per capita household income, namely, ‘most deprived’, ‘deprived’, ‘lower middle’, ‘upper middle’, and ‘well off’. It is interesting to note that, relatively speaking, the rural incomes in coastal Andhra region have improved over the reference period amongst all income categories, excepting the well-off. But in case of Rayalaseema, income growth has occurred amongst the most-deprived and the deprived whereas the relatively richer have experienced a decline in relative income over the reference years. On the other hand, in case of Telangana, the relative income growth is experienced only amongst the richest; whereas the poorer and the most deprived have suffered considerably large decline in relative income over the reference period. Note that for the purpose of this discussion, important is the distribution and the direction of change in income and not the absolute size of income. It appears that, coastal Andhra is experiencing a considerable broadening of income growth where over 80% of rural households, especially those in the bottom of the income pyramid, are experiencing relatively better income growth, although as we have seen in the earlier section, overall income change is relatively slow compared to Telangana. On the other hand, the Telangana region is experiencing a considerable erosion of relative income amongst the relatively poorer sections, although the richest seem to have gained during the reference period. These contrasting dimensions of income change suggest that the relatively poorer in Telangana are vulnerable for mass mobilization so as to demand better opportunities for their economic living. Note that, concurrently, the relatively richer have a firm standing and are reaping the fruits of economic vibrancy as well as through traditionally feudal forms of ownership and also that the relatively richer are able to access the benefits from innumerable government programmes and schemes of affirmative action. 2.10.03 Income Change and Occupations: This income differentiation between Telangana and coastal Andhra region is reinforced by analysis of income change according to occupation. While the farmers in all regions have shown stable income or income which has hardly changed; the real income of the agricultural wage labour has declined considerably in Telangana, whereas it has increased considerably in coastal Andhra region (See Figure 2.39). The selfemployed in non-farm activities, mostly small business and artisans, have shown an increase in income, both in Telangana and in coastal Andhra whereas in Rayalaseema they have suffered during the reference period. 2.10.04 Income Change and Social Identify: Another dimension in which the above trend gets corroborated is in income change by caste and religion (See Figure 2.40). It is clear that the SCs, STs and minorities in Telangana region have suffered decline in income whereas these communities have gained substantially in coastal Andhra. In fact in the coastal Andhra region, relatively speaking, the higher castes have experienced negative income change during the reference period. 2.10.05 All the above analysis suggests that, 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 mobilization on one pretext or the other, including political mobilization with promises which may or may not be met. -138.1 -18.7 -33.4 -3.2 12.8 81.0 24.6 -50.8 -23.1 15.2 77.7 24.3 35.6 48.9 -22.0 -150 -100 -50 0 50 100 Most Deprived Deprived Lower Middle Class Upper Middle Class Well off Figure 2.38: Change in rural per-capita income by income category and region between 1993-94 and 2004-05 Telangana Rayalaseema Coastal Andhra -1.1 -35.9 14.6 -4.7 3.6 -6.7 -8.8 49.2 -3.0 42.2 8.3 -27.3 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 Cultivator Agri. & Non-Agri Labourer Non Farm Self Employment Salaried, Retired & Others Figure 2.39: Change in rural per-capita income by Occupation and Region between 1993-94 and 2004-05 Telangana Rayalaseema Coastal Andhra 61.2 -28.3 -41.5 38.8 -29.9 -4.1 -51.5 71.6 57.1 -60 -40 -20 0 20 40 60 80 High Caste Hindus & Other Minorities SCs & STs OBCs & Muslims Figure 2.40: Change in rural per-capita income by Social-Groups and Region between 1993-94 and 2004-05 Telangana Rayalaseema Coastal Andhra Source: Estimated from NCAER-Human Development Surveys, 1993-4 and 2004-5. 2.11 Inequity Assessed through Estimates of Gini Coefficients 2.11.01 Income inequality: Inequality measured in terms of the Gini coefficients reflects the state of cohesiveness in a particular group’s economic condition which can be compared across the social group categorization. Three broad groups created are the ‘SCs, STs & Muslims’, ‘Hindu OBCs’ and ‘High Castes & Other Minorities’. Note that the Gini coefficient has increased substantially in Telangana, followed by Rayalaseema whereas it has declined in coastal Andhra. But largest increase in Gini is found amongst the SCs, STs & Muslims in Telangana. Interestingly, the Gini has declined amongst the Hindu OBCs who are most likely to be the farming community, suggesting gains from reforms in agriculture and irrigation in Telangana. Interestingly, the income inequity amongst the high caste communities in Telangana has increased. On the other hand, in case of coastal Andhra, the inequality has increased amongst the OBCs compared to the high castes whereas the poorer groups are able to maintain the income disparity at the original level. Rayalaseema is a region where income inequality has increased amongst all communities but the deepest in the region is amongst the poorer sections. Table 2.8: Income Inequality (Gini coefficient) by Rural Socio-Religious Category Region Period All High Caste Hindus & Other Minorities SCs, STs & Muslims Hindu OBCs Andhra Pradesh 1993-94 0.42 0.47 0.34 0.37 2004-05 0.44 0.48 0.39 0.40 % change 6 1 14 9 Telangana 1993-94 0.38 0.44 0.31 0.37 2004-05 0.48 0.53 0.45 0.35 % change 25 21 43 -6 Rayalaseema 1993-94 0.38 0.39 0.35 0.39 2004-05 0.43 0.40 0.39 0.42 % change 13 2 13 8 coastal Andhra 1993-94 0.47 0.52 0.31 0.33 2004-05 0.40 0.47 0.31 0.38 % change -15 -10 -1 16 Source: Estimated from NCAER-Human Development Surveys, 1993-4 and 2004-5. Note: The Gini coefficient, invented by the Italian statistician Corado Gini, is a number between zero and one that measures the degree of inequality in the distribution of income in a given society. The coefficient would register zero (0.0 =perfect equality) for a society in which each member received exactly the same income and it would register a coefficient of one (1.0 = maximum inequality) if one member got all the income and the rest got nothing. Gini Coefficient takes the difference between all pairs of income and simply totals the absolute differences. It is calculated as below: where xi & xj are different income classes, n is the number of values observed and x bar is the mean income. 2.11.02 Inequity in Ownership of Cultivable Land: The data collected by NCAER for the HDPI project during the years 1993-94 and 2004-05 throws light on the pattern of landholding by households across the regions of AP. The percentage of households not having land holdings has increased both in Telangana and Rayalaseema regions, whereas in coastal Andhra region, it has decreased. This can be clearly seen by a decline in Gini coefficients in coastal Andhra whereas there is a net increase in these coefficients in Telangana and Rayalaseema. n x x x G n i n j i j 2 1 1 2 -0.40 -0.20 0.00 0.20 0.40 0.60 0.80 Telangana Rayalaseema Costal Andhra Figure 2.41: Land Inequality (Gini coefficient) 1993-94 2004-05 change Source: Estimated from NCAER-Human Development Surveys, 1993-4 and 2004-5. 2.12 Consumption Expenditure differentials by population groups Consumption expenditure differential is a good indicator to highlight inequity in standard of living across social groups. The NSSO’s 64th round data for the reference year 2007-08 is analyzed to estimate monthly per capita consumption expenditures (MPCE) across regions and for various social groups identified using the caste and religion information. Overall, for AP as a whole, the MPCE has worked out to be `971 during 2007-08. The MPCE is rather low in Telangana `895 compared with coastal Andhra at `1003 but much higher than Rayalaseema which is rather low at `788. Citizens living in Hyderabad, indeed, have very high levels of MPCE, but they are not highlighted in this analysis. Table 2.9 Monthly Per Capita Consumption Expenditure (`) Regions and Social Groups (2007-08) Region/Group All Groups SCs STs OBCs Other Hindus All Minorities Muslims Andhra Pradesh 971 719 680 860 1484 969 892 Telangana inc Hyd 1025 734 734 889 1846 1101 876 Telangana exc Hyd 895 710 726 836 1450 898 855 Rayalaseema 788 590 803 707 1099 755 937 Coastal Andhra 1003 759 570 902 1427 934 841 Source: Estimates from NSSO’s 64th round survey, 2007-08. Note: Hyderabad excluded due to small sample size A review of MPCE according to caste and religious category suggests that the STs have recorded lowest consumption expenditures amongst all the social groups and those living in coastal Andhra have the least at `570. SCs have the second lowest MPCE and have similar levels in Telangana and coastal Andhra but are very low in Rayalaseema at `590. The OBCs have middle level of consumption whereas the high castes have recorded high levels of expenditures at `1846 in Telangana including Hyderabad, `1450 in Telangana excluding Hyderabad, `1427 in coastal Andhra and `1099 in Rayalaseema. The Muslims have levels a bit above the Hindus OBCs but considerably lower than the other minorities. Generally speaking, the consumption levels are lower in Rayalaseema; and the levels between coastal Andhra and Telangana are not very much different. This finding corroborates our discussion in Part I of this chapter relating to the GDDP and other economic indicators. 2.13 Human Development: Deprivations Index The NCAER, a respected independent think tank and research institution, has undertaken two human development surveys about a decade apart; the first one in 1993-4 and the second in 2004-5. In the following are the results of an elaborate exercise using multiple variables to compute and compare change in human development by regions in AP3. The concept of human development is expanded so as to include infrastructural variables as well, and thus, one can compare deprivation in human development (including access to infrastructure) across the regions in AP. There are variations between regions in such deprivations which are the components of human development. 3 Note: Deprivation Index is an aggregate of deprivation in education, health and infrastructure for both the rural and urban areas of the respective regions. Each dimension incorporate a number of relevant variables listed below. All variables have been normalized by using the UNDP methodology: actual value-min. Value / max. value - min. value. Hyderabad is excluded from the analysis. Region scores are the weighted averages. Variable Description and the Source: 1) Deprivation in Education: a) % Illiterate population, b) % Female Illiterate, c) % ST Female Illiterate, d) % SC Female Illiterate, e) % Children 5-14 Age group not enrolled in School, from the 1991 and the census 2001 respectively. 2) Deprivation in Health: a) Infant Mortality Rate (IMR) 1991& 2001, b) % women currently using Family Planning Methods (CUFP) 1998-99 & 2003-04- reciprocal, c) primary health centre (PHCs) available per ten lakh population 1998-99 & 2004-05- reciprocal, d) doctors available per ten lakh population 1993-94 & 2004-05-reciprocal 3) Deprivation in Infrastructure: a) gross un-irrigated area as a percent to gross cropped area 1992-93 & 2004-05, b) % households without dwelling, electricity, tap water, and toilet 1991& 2001, c) per hectare agri. output- reciprocal 1990-93, d) population per bank 1992 & 2005- reciprocal. 0.000 0.100 0.200 0.300 0.400 0.500 0.600 Telangana Rayalaseema Coastal Andhra 0.515 0.421 0.388 0.502 0.532 0.390 Score Figure 2.42: Deprivation index across regions of A.P. Early to Mid 1990 Early to Mid 2000 0.722 0.495 0.37 0.52 0.54 0.45 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 Telangana Rayalaseema Coastal Andhra Figure 2.42a: Deprivation in Education Early to Mid 1990 Early to Mid 2000 0.425 0.345 0.345 0.441 0.339 0.271 0 0.1 0.2 0.3 0.4 0.5 Telangana Rayalaseema Coastal Andhra Figure 2.42b: Deprivation in Health Early to Mid 1990 Early to Mid 2000 0.4 0.424 0.449 0.544 0.718 0.448 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 Telangana Rayalaseema Coastal Andhra Figure 2.42c: Deprivation in Infrastructure Early to Mid 1990 Early to Mid 2000 Telangana has fairly high level of deprivation but it has recorded a decline in deprivation during the reference decade. Coastal Andhra has relatively low level of deprivation compared with other regions and it continues to sustain that level during the reference period. It is Rayalaseema region which has recorded an increase in deprivation from an already low level to considerably higher level during the reference period. Broadly speaking, this trend in human development deprivation corroborates a number of independent factors and parameters already discussed in this chapter. In many ways, this deprivation alone comprehends the relative development scenario of the regions in AP. 2.14 Social Profile Caste and religious composition is an important indicator of the social value structure and political power equation in an area. In the context of the separate demand of Telangana, it is useful to know the distribution of the shares of the socio-religious groups which are normally so identified in the day-to-day socio political discourses for various combinations of regions. The population shares of the following caste/social/religious categories are estimated for this discussion – SCs, STs, Hindu OBCs, Hindu High Castes, Muslims and other Minorities. The primary difference between regions is with respect to the shares of STs and Muslims. For example, while the share of SCs is around 16% across all regions in various combinations (excepting Hyderabad); the share of STs varies substantially. Ten percent of Telanganites are STs, which is the largest share compared to any other region or regional combination; whereas they constitute less than 3 % in Rayalaseema and 6% in coastal Andhra. The other category, which has variation between regions, is the share of Muslims. In Telangana, they constitute 8.4%, but they are 12.5 % in Rayalaseema and much less in coastal Andhra at only 4.5%. Due to historical reasons 41% of the population of Hyderabad is Muslims. A look at the social differentiation amongst the Hindus suggests that 24% of all citizens in Rayalaseema are identified as high caste, but a higher share of OBCs is found in Telangana at 53%. Due to dominant presence of Muslims in Hyderabad, the share of OBCs is much lower while the share of high caste Hindus is slightly more than in Telangana region. The population share comparisons are presented for additional combinations such as Telangana, Hyderabad and Rayalaseema all together; Telangana and Rayalaseema together and coastal Andhra and Rayalaseema together. 16.2 15.8 16.9 8.0 16.7 16.1 16.9 16.3 16.4 6.6 8.9 10.0 0.9 2.9 7.0 7.6 6.0 5.0 9.2 12.4 8.4 41.2 12.5 12.5 9.8 4.5 6.9 1.7 1.5 1.2 3.2 0.9 1.3 1.1 2.2 1.8 44.5 50.7 52.9 34.9 42.9 48.2 49.5 39.1 40.2 21.9 10.7 10.5 11.8 24.2 14.8 15.2 31.9 29.6 0% 20% 40% 60% 80% 100% Andhra Pradesh Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalasema Telangana inc Hyd+Rayalasema Telangana exc Hyd+Rayalasema Coastal Andhra Coastal Andhra+Rayalasema Figure 2.43: Socio-Religious Composition across Regions of AP - 2001 High Castes OBCs* Other Minorities Muslims STs SCs Source: Census of India, NSSO 2.15 Summary and Discussion 2.15.01 One of the major arguments for a separate state of Telangana has been that since the formation of the state of AP, this region has been neglected and even discriminated against, resulting in economic and social hardship. Compared with coastal Andhra, it is alleged that Telangana has low per capita income, lower access to employment, lower business opportunities and low access to education and so on. It is also alleged that most of the higher level economic opportunities are appropriated by those belonging to coastal Andhra. At the outset, some or all such allegations appear true when absolute amounts, numbers and percentages are reviewed. Yet, when a study of rate of change, growth rate and shares in the state economy is evaluated, nothing unusual emerges. Telangana excluding Hyderabad, currently has a share of 36% in state population and 41% in state land mass. Any development parameter that is consistent with these shares can be considered on par or at parity with the population / share of land mass. Indeed, one finds that at a reference point in the past, such as the census 1961 or 1956 or 1974 since when factual data are available, the shares for Telangana were far too low (refer to Figure 2.44). In recent years, however the shares of Telangana for many common development parameters are in league with the share of population / area, often being higher. There are a few crucial indicators on which Telangana is lagging behind, and they appear to have occurred due to structural causes of the economy and also due to concentration of economic activity in Hyderabad district/urban agglomeration. Source: Statistical Abstract of AP, Note: Reference years for ‘Then’ and ‘Now’ for each indicator is given in Appendix 2.24 2.15.02 Overall, in spite of 50 plus years of policy protected planning and execution, one finds regional variations in the economic development of AP. The rate of growth in the development parameters summed up below is found to be robust both in Telangana (even after excluding Hyderabad) and coastal Andhra. Disturbing, however, are the growing levels of inequity within Telangana and Rayalaseema, and within the deprived population groups. Contrastingly, the evidence suggests that the inequity in income has, in fact, declined in coastal Andhra. It is essential, therefore, to take a note of inequity differentials between the haves and have-nots in Telangana, especially amongst the SCs, STs and minorities. Such deepening inequity in Telangana can not only sustain the separatist agitation but it can also carry it further and increase its intensity. The masses, therefore, can be easily used as tools of agitation by motivated groups and even political parties. 2.15.03 Further, is important to take a medium to long-term perspective so far as the future development of the state or its constituencies is concerned. An understanding of the perspective of the Telangana issue within a poverty, deprivation and empowerment framework does not compulsorily support partitioning of the state. It is a fact that most of the economic and developmental parameters show that Telangana (excluding Hyderabad) is either on par with or a shade lower than coastal Andhra; but once Hyderabad is included, the situation in Telangana is far better. Additionally, the rate of growth of most of the parameters of development has shown robust growth in Telangana. Coastal Andhra has natural advantages and a long history of development in agriculture, but it is the Telangana region which has shown commendable growth in agriculture during the past three-four decades. Thus, on the whole, it would appear that the deprived region is Rayalaseema not Telangana. Telangana region is found to be relatively less serviced by commercial banks and associated credit, and this region is found to have had relatively low levels of financial and fiscal devolution at the panchayat level. Due to concentration of services such as education and health facilities, and services sector employment in Hyderabad city, other parts of Telangana are under-serviced. There is an urgent need to remove these anomalies from Telangana. 2.15.04 Economic inequality within the region is an important indicator of the unrest within communities. This analysis of income change in rural areas over a period of one decade suggests that, in Telangana, the relative income growth has occurred only amongst the richest; whereas the poorer and the most deprived have experienced considerably large declines in relative income over the reference period. 2.15.05 While the farmers in all regions have shown stable income or income which has hardly changed; the real income of the agricultural wage labourers has declined considerably in Telangana whereas it has increased considerably in coastal Andhra region. Similarly, the SCs, STs and minorities in Telangana region have suffered a decline in income during the past about decade or more, whereas these communities have gained substantially in coastal Andhra. The high caste / communities have gained considerably in Telangana while there is erosion of relative income amongst the rich in coastal Andhra. These trends and intra-regional differentials in income distribution are corroborated by an advance analysis by estimating Gini coefficients. However, of all the regions, it is Rayalaseema which has experienced broad based decline in living standards in AP during the reference period. This fact gets support from the measurement of ‘monthly per capita consumption expenditure’ which is far too low in Rayalaseema. 2.15.06 Human development is a comprehensive measure of deprivation in communities. Overall, the evidence suggests that coastal Andhra is successful in maintaining the levels of human development compared with Telangana and Rayalaseema where there is a decline during the reference period. But the decline is far steeper in Rayalaseema. This result further supports the above highlights of broadening of inequality in income and consumption. 2.15.07 Economic Viability: There are a number of queries and doubts which emerge in the minds of policy makers and people at large as to what would be the economic viability of the states which may come into being if the state of AP is bifurcated or split. Literature on the linkages between size of geographic area, population size and economic standards of a nation or state is scarce, at least in case of India. However, without getting into technical debates due to want of time and space; a discussion on the implications of division of AP is presented below. There are compelling arguments available favouring both united and divided (bifurcated) Andhra Pradesh. 2.15.08 Economic Size of a State Argument: Consider the status of the regions (various combinations) within AP in terms of the GDP and per capita income. AP is the 4th largest state in India in terms of area and 5th largest in population; and it is ranked 3rd in terms of the absolute size of GDP in the year 2007-08. In terms of per capita income, however, AP is just above the all India average and occupies 11th position. An interesting scenario emerges if various regions of AP are compared between themselves and with the other states in India. For example, Telangana region (excluding Hyderabad) ranks 15th in the list of 28 states (excluding AP) in terms of the absolute amount of GDP, and is listed above the states of Chhattisgarh, Jharkhand, Uttarakhand, Himachal Pradesh, Goa and all the North eastern states (Appendix 2.25). In terms of per capita income, Telangana (excluding Hyderabad) is a notch higher than the all-India average. Telangana (including Hyderabad) ranks 13th in GSDP as well as in per capita terms. The relatively deprived region of AP is Rayalaseema; but it ranks just a notch below the all- India average in per capita income and its overall GDP is higher than Uttarakahand, Himachal Pradesh, Goa and northeastern states excepting Assam. Coastal Andhra stands out as a superior economic entity within AP; and its GDP will be 13th largest compared with the states of India. In terms of per capita GDP, it is much higher than the national average and stands 10th in ranking amongst the states of India. Thus, from the point of view of sheer size of economy, Telangana as a new state can sustain itself both with and without Hyderabad. The other combination of regions – coastal Andhra and Rayalaseema together can also sustain themselves as a state; in fact they can also sustain themselves separately. The size of the state GDP can be considered a neutral factor in the decision making relating to Telangana. 2.15.09 Economic Reforms and the States: These are the days of economic reforms and globally a period when economic blocs consisting of many smaller nations are being formed in the interest of enhancing economic opportunities, markets and employment. It is normally believed that formation of smaller states additionally contribute to pre-existing barriers to the inter-state and intra-state trade and movement of goods and services. For example, a variety of local entry taxes and cess will scuttle free trade and enhance cost of business and increase prices of the goods and services. There can also be local laws restraining physical movement of goods and services between neighbouring regions and between states. Such fears are very strong in Rayalaseema and they are apprehensive that Hyderabad city, as a market destination and also a source of supply, will be out of bonds after the creation of Telangana as a separate state. Coastal Andhra will also lose a major market inherent in huge population, business and market concentration of the city of Hyderabad. On this count, separation of AP can be a negative factor which inhibits economic growth of newly formed states. 2.15.10 Governance Related Arguments: On the other hand, there are a number of arguments that favour smaller states with respect to governance and inclusive development. Smaller states can give greater representation and access to governance of the state. For example, it is possible that the ST community and the Muslims in AP may get a relatively better say in governance on separation in the state of Telangana. However, this will not be the case in coastal Andhra due to relatively smaller share of these communities in this region. Therefore, the argument in favour or against separation on the issue of governance and representation can work both ways and the impact will not be uniform on all the segments of the newly formed states. Generally, it is believed that larger states are difficult to govern due to large expanse and distance especially when governance is centralized in the state capital. These are the days of decentralization of governance through the 73rd and 74th amendments; and AP has resorted to the Mandal (a unit smaller than district consisting of a set of gram panchayats) system of governance since long. Therefore, this maturing process of decentralization of governance does support sustenance of a unified AP. 2.15.11 City Economy of Hyderabad: There is a large concentration of economic activity, employment generation and markets in the district/urban agglomeration of Hyderabad. For example, the district of Hyderabad has a share of 8 % in the total GDP (constant prices) of AP. The share of urban agglomeration-Hyderabad is expected to be much higher. Similarly, the share of Hyderabad district GDP in the region of Telangana (including Hyderabad) works out to be 18%. Therefore, it is important to keep the city/district/urban agglomeration of Hyderabad accessible to people and businesses from any of the regions of AP or for that matter from any part of India and abroad. This can be accomplished irrespective of whether the political control over Hyderabad is wielded through a united AP or otherwise. CHAPTER 3 EDU C A T I ON A ND HE A L TH PART I: EDUCATION 3.1 Comparison of Educational Achievements in different regions of AP 126 3.2 Causes of Gap: Historical, Sociological and Economic 129 3.3 Levels of Education 132 3.4 Educational Facilities and Indicators of Quantity and Quality of Education (District/Region wise) 134 3.5 Tertiary Education 142 3.6 Educational Facilities in Hyderabad and Rangareddy 147 3.7 Issues raised/Specific cases brought out by Political/Other groups/Representations 149 3.8 Summing up 158 PART II: HEALTH 3.9 Health Infrastructure 164 3.10 Health Indicators 172 3.11 Summing up 175 3 EDUCATION AND HEALTH The educational and health status of people is an important indicator of their quality of life. This Chapter therefore includes an examination of these two important dimensions of human development in detail. Part I of the Chapter looks at Education and Part II at Health related issues. PART I: EDUCATION Every society that values social justice, lays emphasis on access to educational opportunities for all sections of society, especially the poor and marginalized. Education is not only an important social indicator of, but is directly linked to economic and social development. It is one of the main avenues for social mobility in a democratic society and also a means for governments to ensure inclusive growth. Education and employability are intrinsically linked and the demand for education from all sections of society reflects people.s aspirations to improve their children.s future prospects. In this chapter the progress in literacy and education in the three regions of Andhra Pradesh – Telangana, coastal Andhra and Rayalaseema - is reviewed to understand their respective standing and seek explanation for regional disparity, if any. The chapter also takes up specific claims of neglect and/or discrimination made by the Telangana region as access to education is one of the major issues in their demand for a separate state. 3.1 Comparison of Educational Achievements in different regions of AP Literacy Rates 3.1.01 Literacy levels are an important measure of educational status of a region. The state of Andhra Pradesh has been lagging behind the all India level of literacy but the gap has somewhat narrowed in recent years (Table 3.1). The gap is partly because a systematic attempt towards universalisation of primary education in all the districts of the State was made only after the State.s formation in 1956. Table 3.1: Literacy Rate in India and Andhra Pradesh 1961 1971 1981 1991 2001 All India 28 34 44 52 65 Andhra Pradesh 21 25 30 44 60 Telangana inc Hyd 17 21 26 41 58 Telangana exc Hyd 14 16 22 37 55 Hyderabad 35 40 58 72 79 Rayalaseema 21 24 30 45 60 Coastal Andhra 24 28 33 46 63 Source: Census Data Gap in literacy rates between the regions and catch up 3.1.02 The regional literacy rates given in Table 3.1 above bring out that while the overall literacy rate in Andhra Pradesh in 2001 is 60%, the literacy rate in Telangana is only 58% well below that of coastal Andhra (63%) and somewhat lower than Rayalaseema (60%). Literacy rates in Telangana excluding Hyderabad1 are the lowest (55%). The gap in literacy achievements has to be situated against the historical background outlined later on in this Chapter. Though Telangana remains behind the other two regions, it has made significant 1 It has been argued that being an urban centre and the capital city, Hyderabad is educationally far more developed than other districts of the region and therefore its inclusion in the statistics of the region hides the level of deprivation of the other areas in the region. In some of the regional comparisons therefore, we consider Hyderabad separately from Telangana. 0 10 20 30 40 50 60 70 1961 1971 1981 1991 2001 Literacy Rate Figure 3.1: Change in Literacy Rate across Regions (1961-2001) Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra 146.11 180.06 144.67 127.83 0 20 40 60 80 100 120 140 160 180 200 Andhra Pradesh Telangana Rayalaseema Coastal Andhra % Figure 3.2: Percentage increase in Literacy (1971-2001) progress and the gap in literacy rates between coastal Andhra and Telangana excluding Hyderabad has been progressively declining since 1971 (Figure 3.1). Telangana region shows the highest rate of growth in literacy (Figure 3.2). Source: Census of India Source: Census of India 3.1.03 Despite the impressive growth in literacy rates and number of schools, the districts in Telangana remain amongst those with lowest literacy though they are catching up.2 The district-wise literacy rates (Appendix 3.1) bring out that in 2001, 6 of the Telangana districts remained amongst the 10 with lowest literacy (literacy < 57.15%). An analysis of the data on educational achievements reveals that most districts of Telangana continue to lag behind districts of coastal Andhra and Rayalaseema not only in terms of literacy rates but also in female literacy rates, percentage of children in school as a whole as well as for the SC, ST groups. However, the gap between the educationally backward and advanced districts is narrowing as we find that the coefficient of variation in the adult literacy rate as well as in the percentage of children in school has come down in 2001 as compared to 1991 (Appendix 3.2). Youth Literacy 3.1.04 Youth literacy is a more robust indicator of progress in literacy achievements as it excludes the very young and those among the older population who never had an opportunity to gain literacy. Regional literacy rates among the youth population (ages 8 -24) calculated from the NSS data are given in Figure 3.3. 0 20 40 60 80 100 1983 2007 % change 46 89 93 51 82 61 54 88 63 Figure 3.3: Literacy Rates Among Population aged 8-24 Years Telangana Rayalaseema Coastal Andhra 2 The analysis is based on literacy rates as per 2001 census; the current situation will become clear only after the census 2011 results are available. Source: NSS Household Consumer Expenditure Surveys 1983 and 2007/8 0 1 2 3 4 5 6 7 1983 2007 2.7 6.9 3.1 6.1 3.2 6.5 Figure 3.4: Number of Years of Schooling among 8-24 Years' Olds Telangana Rayalaseema Coastal Andhra The findings are quite dramatic – although youth literacy rate in Telangana was behind those in the other two regions in 1983, in 2007 Telangana is ahead of the other two regions in terms of the youth literacy rates, showing the highest percentage increase over the period. Not only this, the number of years of schooling among the population aged 8-24 increased fastest in Telangana taking it from the third place in 1983 to first place in 2007 among the three regions (Figure 3.4). Source: NSS Household Consumer Expenditure Surveys, 1983 and 2007/8 3.2 Causes of Gap: Historical, Sociological and Economic 3.2.01 At the time of independence and subsequently when the state was formed coastal Andhra was educationally ahead of Telangana since it had benefitted from the spread of education by Christian missionaries during colonial rule. Also, British rule resulted in wider use of English in coastal Andhra and Rayalaseema as compared to Telangana where Urdu was the official language under the Nizams. Coastal Andhra region also benefitted from standardization of Telugu language which was the medium of instruction in schools and access to schooling was made available to all sections of society, including the lower castes. Hence, while the Andhra region got an undeniable advantage, the Telangana region had to overcome multiple handicaps – poor spread of schooling and higher education as well as medium of instruction being solely Urdu at the time of its merger with the Indian union. Telangana students (and employees) were thus doubly disadvantaged by not only having limited access to education but also little familiarity with English. Indeed, at the time of the merger, the region was short of qualified teachers and this gap was filled by bringing in teachers from coastal Andhra. This later became an issue of discord during the 1969 agitation. However, as mentioned above, Telangana has reduced the gap in literacy over the last few decades and this becomes more visible if we look at literacy rates among the youth population (See sub-para 3.1.04). 3.2.02 Besides historical factors, there are other socio-economic reasons why overall literacy tends to be lower in certain parts of the state. It is a known fact that literacy levels are lower among the rural, poor and socially deprived sections (SC, ST, BC, Muslim minorities and Women). The illiteracy rates are highest among the ST female adults in rural areas of Andhra Pradesh (96.5% in 1991 which declined to 86.5% by 2001) depicting the impact of multiple deprivations. Table 3.2 gives the region-wise literacy rates of different social groups. Table 3.2: Region-wise literacy rates of different social groups Regions SC Literacy Rate, 2001 ST Literacy Rate, 2001 Literacy Rate, 2001 Males Females Total Males Females Total Males Females Total Andhra Pradesh 64 43 54 48 26 37 70 50 60 Tel inc Hyd 59 36 47 47 23 35 69 47 58 Tel exc Hyd 58 34 46 47 22 35 67 43 55 Hyderabad 77 61 69 65 46 55 84 74 79 Rayalaseema 64 39 51 55 32 44 72 47 60 Coastal Andhra 68 52 60 47 30 38 71 55 63 Source: Census of India: 2001 As is clear, literacy rates are particularly low for the ST population in all the regions of the state and since Telangana has the highest concentration of tribals among the three regions, this provides one explanation for the overall low literacy in the region. Also, Social Disparity Index for the STs in Telangana declined at a much slower rate than that in the other two regions during 1971- 19913. However, Chapter 7 which provides a detailed analysis of the literacy rates and years of education for the different social groups, shows that in 2007, literacy rates for the youth population aged 8-24 for SCs and Muslims in Telangana are ahead of or at par with those in the other two regions. Youth literacy rates for STs in Telangana though grew at an impressive rate of 278% between 1983-2007, are still behind those in coastal Andhra and Rayalaseema. Enrolment and Dropout Ratios 3 Reddy, V. Ratna and R. Nageswara Rao „Primary Education: Progress and Constraints. in Economic and Political Weekly, March 22-29, 2003. 4 One explanation for high enrolment ratios is that the children dropping out once may be enrolled again and thus the same child may be counted two or more number of times. Thus, districts with high dropout ratios tend to have a high enrolment which seems to be the case with Mahbubnagar, Medak and Warangal. Another explanation (Statistical Abstract Andhra Pradesh - 2009, p. 397) is that since these ratios are defined as the percentage of the enrolment in classes I-V, VI-VII and VIII-X to the estimated child population in the age groups of 6-10 years, 11-12 years and 13-15 years respectively, the enrolment of under age and over age children may result in enrolment ratios being greater than 100%. 3.2.03 The district-wise enrolment ratios and dropout ratios for different levels of schooling are given in Appendix 3.3 and 3.4 respectively. An analysis of enrolment ratios for Primary schools (Appendix 3.3) shows that these are higher for districts of Telangana (ranging between 95.22 in Khammam and 148.66 in Rangareddy for Classes I-V, as against the state average of 97).4 The very high enrolment ratio in Rangareddy shows that it is the favourite destination for students from other districts and regions. 3.2.04 However, one needs to be cautious about using the enrolment ratios since the Human Development Report of Andhra Pradesh 2007 points to the existence of „fictitious enrolment. in Andhra Pradesh and lists some of the reasons for it – such as provision of mid-day meals. It also mentions that data available from the MHRD (Ministry of Human Resource Development) overestimates the number of school-going children which may lead to misleading results. It is therefore, more meaningful to look at the number and percentage of children attending school. According to the census 2001, school attendance rate among the 6-14 years. olds in the state was 74 percent. According to the Human Development Report - during the 90s, there was a sharp increase (termed by it as „a dramatic change.) in percentage of children attending schools in Andhra Pradesh. The table also shows that there has been a sharp decline in the interdistrict as well as rural-urban variation in the school attendance rates (as measured by the Co-efficient of Variation). 3.2.05 Dropout ratios (Appendix 3.4) are particularly high in case of Mahbubnagar, Medak and Warangal (all three are in Telangana region) at all levels. However, Prakasam and Guntur in coastal Andhra and Adilabad and Nizamabad in Telangana which have low dropouts at primary level end up having high dropouts comparable to those of Mahbubnagar, Medak etc showing that there are more dropouts in these districts at the higher level. It may also be due to the fact that some of the students do not complete their education in the same district and get enrolled elsewhere. 3.2.06 Another explanation for low literacy can be found in the lack of infrastructural facilities such as number and spread of schools, student teacher ratios etc. The available data suggests that Andhra Pradesh is better off than the average level for India in most of these parameters. The inter-regional differences in these facilities are analysed in Para 3.4 and 3.5. 3.3 Levels of Education 3.3.01 In the census data on districts, the literates are further divided on the basis of highest education level into six groups. The figure below shows highest education level of persons as a percentage of total literates region-wise as per Census 2001. 4.1 4.1 4.0 3.6 3.5 24.7 27.0 13.2 22.9 25.1 26.3 27.3 21.3 35.1 33.5 10.3 10.5 9.3 10.1 10.3 26.4 24.8 34.5 22.0 21.3 8.3 6.4 17.7 6.2 6.4 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Telangana inc Hyd Telangana exc Hyd Hyderabad Rayalaseema Coastal Andhra Figure 3.5: Distribution of Literates by Level of Education across Regions - 2001 Without Level Below Primary Primary Middle Matric/Hr. Sec. Grad. & Above Source: Census 2001 Telangana (in particular Hyderabad) has the highest educational attainment levels – this is given by the lowest fraction of „only primary level. achieved and the highest fraction of those with „at least a higher secondary education.. Telangana also has a larger number of high schools and higher secondary schools and higher enrolment in these as compared to the other two regions (Para 3.4.06). At present, there is greater demand for higher education in Telangana districts as compared to agriculturally prosperous districts of coastal Andhra. The higher demand reflects the catch-up process from a lower base and could be correlated with improving income levels in several Telangana districts. At the same time, reservation and fee reimbursement policies have enabled many first generation learners from SC/ST/BC categories to enter college education. Such students (and their parents) have extremely high aspirations of getting decent employment, preferably in the public sector. 71.9 67.9 59.5 59.2 64.9 71.7 104.8 103.1 95.4 95.7 93.0 85.9 86.2 93.3 82.4 78.7 80.6 77.4 0.0 20.0 40.0 60.0 80.0 100.0 120.0 1960-61 1970-71 1980-81 1992-93 2000-01 2008-09 Figure 3.6: Region wise No. of PrimarySchools per Lac Population Telangana Rayalaseema Coastal Andhra 3.4 Educational Facilities and Indicators of Quantity and Quality of Education (District/Region wise) Access to and distribution of educational facilities significantly affects the distribution of opportunities in society. The availability of good quality educational institutions is, therefore, a prerequisite for human development. The following paragraphs briefly analyse the availability of educational institutions in the districts/regions of the state. Primary Education 3.4.01 Andhra Pradesh is far better than the average Indian state in respect of physical access to primary schools. In the state, around 90% of the population is served by primary schools within their habitation. Within the state, the differences in access to primary schools across districts are not wide and have in fact been narrowing over the past few decades. The number of primary schools in the state increased from 30495 in 1960-61 to 65609 in 2008-09. Appendix 3.5 gives the district wise distribution of primary schools, enrolment, number of teachers, teacher-pupil ratio, enrolment and drop out ratios. The regional distribution of primary schools per lac population from 1960-61 to 2008- 09 is given in Figure 3.6. Source: Statistical Abstracts of Andhra Pradesh 1.3 8.2 10.4 12.2 22.3 18.2 1.4 5.5 7.2 8.6 20.1 20.4 1.1 6.4 7.4 7.4 15.2 15.3 0.0 5.0 10.0 15.0 20.0 25.0 1960-61 1970-71 1980-81 1992-93 2000-01 2008-09 Figure 3.7: Region wise No. of Upper PrimarySchools per Lac Population Telangana Rayalaseema Coastal Andhra Though the total number of primary schools in the state doubled during 1961 to 2009, the availability of primary schools per lac population in the state does not show an increase because many primary schools have been upgraded to upper primary and high school level increasing their availability in all regions (Sub-para 3.4.02 and 3.4.05). In the number of primary schools per lac population, Rayalaseema is leading in all periods, with coastal Andhra following at number two position. Since 1993 Telangana has been catching up, narrowing the gap with Rayalaseema and coming very close to the level of coastal Andhra. Upper Primary Education 3.4.02 Appendix 3.6 gives the district-wise number of schools, enrolment and number of teachers as well as Teacher-Pupil Ratios for Upper Primary Schools. An analysis of teacher pupil ratios (number of students per teacher) in the various districts shows them to be quite balanced and below 35 (ranging between 21.05 in Nellore to 32.28 in Hyderabad). The number of upper primary schools in the state has seen a quantum jump from 444 in 1960-61 to 14942 in 2008-09 taking the availability of upper primary schools per lac population from 1.23 to 19.61 over this period. Figure 3.7 shows the regional distribution of Upper Primary Schools in the state. Source: Statistical Abstracts of Andhra Pradesh The number of upper primary schools per lac population has increased greatly in all the regions. Telangana has soared ahead of other regions between 1961 to 2001, although falling a little behind Rayalaseema in the last period. Growing Demand for Private Schools: 3.4.03 Since the late 1980s and particularly since the 1990s, the demand for private schools in Andhra Pradesh has been growing. This is due to the general perception that the quality of government schools is very poor and the growing awareness of the value of education and rising expectations of parents as to the quality of schooling. In Andhra Pradesh, 11% of the primary and 29% of the upper primary schools were under private management and about 30% and 34% of the children enrolled were in private primary and upper primary schools in 2005. The Annual Status of Education Report (Rural) 2009 (ASER) shows (Appendix 3.7) that the percentage of children going to private schools is more in Telangana (33.1), highest being in Karimnagar (43.1) as compared to coastal Andhra (28.5) and Rayalaseema (23.9).The emergence of private education underlines the dualism in the education system. This leads to differentiation in employment opportunities and earning prospects in the labour market. 3.4.04 The ASER Report looks at learning achievements of children in classes I-V and possible explanations for differences in achievements. Districtwise data alongwith region-wise aggregates from the report are given in Appendix 3.7. Learning outcomes depend upon a number of factors - mothers. education, tuitions and private schooling are important among these. The ASER study finds that although the percentage of mothers who can read is lowest in Telangana (39.7), there are fewer children (12.3%) attending tuitions in the region. A look at the learning outcomes shows that Telangana children are behind those in schools in the other two regions. It is however not possible to draw an inference about the quality of schooling/teaching in the districts/regions 3.1 7.7 7.9 12.4 22.2 25.4 3.3 6.5 6.9 10.0 16.0 18.6 3.7 6.4 6.5 8.8 13.0 15.7 0.0 5.0 10.0 15.0 20.0 25.0 30.0 1960-61 1970-71 1980-81 1992-93 2003-04 2008-09 Figure 3.8 Region wise No. of High Schools per Lac Population Telangana Rayalaseema Coastal Andhra from the learning outcomes of the children without accounting for other factors affecting it. High Schools 3.4.05 The number of high schools in the state increased from 1224 in 1960-61 to 17376 in 2008-09 taking the availability of high schools per lac population from 3.40 to 22.80 over this period. Figure 3.8 shows the regional distribution of High Schools in the state. Source: Statistical Abstracts of Andhra Pradesh The availability of high schools per lac population shows impressive growth in all the regions. Telangana which was slightly behind the other two regions in 1961 has soared ahead of them since 1971 onwards with the gap between it and the other two regions widening progressively. District-wise information on Number of Schools, Enrolment and Number of Teachers as well as Teacher Pupil Ratio for the High Schools (Classes IX and X) is given in Appendix 3.8. Most districts have teacher pupil ratio of around 35 or less except Visakhapatnam (40), Anantapur (39.6) and Kurnool (38%). Telangana Exc Hyd 38% Rayalaseema 15% Coastal Andhra 39% Hyderabad 8% Figure 3.9: Regional Distribution of Higher Secondary Schools and Junior Colleges Higher Secondary Schools and Junior Colleges 3.4.06 The institutions for students of classes 11th and 12th run by the Central Government (and a few private unaided) are known as Higher Secondary Schools while those run by the State Government and private institutions are called the Junior Colleges. Since they cater to the same age group, we have combined the two for the analysis. District-wise information on Number of Schools (including Junior Colleges), Enrolment and Number of Teachers as well as Teacher Pupil Ratio (TPR), is given in Appendix 3.9. Except for Rangareddy, Hyderabad and Karimnagar in Telangana and Krishna and Visakhapatnam in coastal Andhra TPRs in all districts are below 37. Regional distribution of institutions is shown in figures 3.9 and 3.10. Source: Statistical Abstract Andhra Pradesh (2009) Telangana Exc Hyd 39% Rayalaseema 15% Coastal Andhra 38% Hyderabad 8% Figure 3.10: Regional Distribution of Enrolment in Junior Colleges including Higher Secondary Schools Source: Statistical Abstract Andhra Pradesh (2009) 46% of institutions and 48% of students in higher secondary schools plus Junior Colleges are in Telangana region. Here again, Telangana has more than its share of population. An analysis of the district-wise data however shows that a large number of institutions (and students) are concentrated in Rangareddy and Hyderabad, probably because of more opportunities for higher education (particularly engineering and other professional degrees) available there. Hostels for Scheduled Castes and Scheduled Tribes Students 3.4.07 Availability of schools at Upper Primary and High School as well as Higher Secondary/Junior College level has improved greatly between 1961 and 2009 in all the regions of the state. Besides this, the state also supports education for the disadvantaged by running residential schools. Figures 3.11 and 3.11(a) show the regional distribution of number of SC Hostels and students per Lac SC Population. 0.00 5.00 10.00 15.00 20.00 25.00 30.00 1981 1991 2001 Figure 3.11: Regional Distribution of SC Hostels per Lac SC Population Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra 0 500 1000 1500 2000 2500 3000 3500 1981 1991 2001 Figure 3.11(a): Regional Distribution of Enrolment in SC Hostels per Lac SC Population Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra Source: Statistical Abstract Andhra Pradesh (2009) Source: Statistical Abstract Andhra Pradesh (2009) Telangana region has relatively fewer hostels per lac SC population than the other two regions but the gap is less in 2001 than in 1991. Also, the gap in the 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 1981 1991 2001 Figure 3.12: Regional Distribution of ST Hostels per Lac ST Population Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra 0 200 400 600 800 1000 1200 1400 1600 1800 1981 1991 2001 Figure 3.12(a): Regional Distribution of Enrolment in ST Hostels per Lac ST Population Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra number of SC students enrolled in these hostels per lac SC population is quite low in 2001. 3.4.08 Figures 3.12 and 3.12(a) show the number of ST Hostels and students enrolled in them per lac ST population region-wise. Source: Statistical Abstract Andhra Pradesh (2009) Source: Statistical Abstract Andhra Pradesh (2009) The number of ST Hostels per lac ST population has come down in all the regions though the gap between them has narrowed. The number of ST hostels per lac ST population is less in Telangana but the number of ST students enrolled in these per lac ST population is more than in coastal Andhra showing the high demand for these in Telangana. 3.5 Tertiary Education Spread of Higher Education in different regions before Independence 3.5.01 Coastal Andhra had a head start in higher education since a number of educational institutions at degree and post-graduate level were already present in the region prior to independence. These include: . The college at Machilipatnam established by Church Missionary Society in 1864 . Junior College at Rajahmundhry that was made a degree college in 1877 . Hindu College (presently known as the A.V.N. College) at Visakhapatnam in 1878 . Andhra Christian College, Guntur in 1885 . PR College of Kakinada before 1910 . Hindu College, Guntur in 1930 . SRR & CVR College at Vijayawada 3.5.02 Later, Andhra University was established at Visakhapatnam in 1926 as an English medium university where the Arts College was started in 1931 under the Vice-Chancellorship of Sarvepalli Radhakrishnan. In Rayalaseema region, Theosophical college in Madanapalli was established by Annie Besant in 1915. Government Arts College was established at Ananthapur in 1916. 3.5.03 In Telangana, the development of educational institutions was concentrated in Hyderabad. Nizam College was established in Hyderabad in 1887 and was affiliated to Madras University. It had English medium education. Osmania University was established in 1918 with Urdu as the medium of instruction in all its colleges (Professional and Non-Professional) until 1948 and all its colleges were located in the Hyderabad city. There was only one intermediate college outside of Hyderabad which existed at Warangal town and which also had Urdu as the medium of instruction. 3.5.04 Given the disparity in institutions of higher education in the two regions at the time of merger, therefore, it was feared that the people of Andhra, with their higher educational standards would have an unfair advantage in filling government and educational jobs.5 Against this background, the Gentlemen.s Agreement provided for the following safeguards relating to education (and employment): 5 While debating the merger of Andhra and Telangana, the SRC stated: “One of the principle causes of opposition to Vishalandhra also seems to be the apprehension felt by the educationally backward people of Telangana that they may be swamped and exploited by the more advanced people of coastal area. In the Telangana districts outside the city of Hyderabad, education is woefully backward. The result is that a lower qualification than in Andhra is accepted for public services, The real fear of the people of Telangana is that if they join Andhra, they will be unequally placed in relation to the people of Andhra.” (Para 378, p105) . Existing educational facilities were to be reserved for students from the Telangana region and every effort was to be made to improve educational facilities in the region . Recruitment to the civil service and other areas of government employment such as education and medicine was to be proportional . The use of Urdu was to continue in the administration and the judiciary for five years As detailed in the first chapter of this report, dissatisfaction of Telanganites with the way the safeguards under Gentlemen.s Agreement were implemented led to the agitation for Mulki rules in 1969 and subsequent developments to Jai Andhra Movement in 1973, giving rise to various agreements and formulae over time. Here the safeguards relating to education under different agreements/formulae are recapitulated: ALL PARTY AGREEMENT, 1969 “Steps will be taken to afford better educational opportunities to students irrespective of region in the capital city of Hyderabad with effect from the ensuing academic year.” FIVE POINT PROGRAMME, 1972 “Educational facilities including those in the technical and professional fields which are available at present to Telangana students in the cities of Hyderabad and Secunderabad will not be adversely affected. In these cities, the facilities will be suitably expanded and these educational facilities will not be subject to any restrictions on the basis of residence.” SIX-POINT FORMULA, 1973 “Institution of uniform arrangements throughout the state enabling adequate preference being given to local candidates in the matter of admission to educational institutions and establishment of a new Central University at Hyderabad to augment the existing educational facilities should be the basis of the educational policy of the State.” ANDHRA PRADESH EDUCATIONAL INSTITUTIONS (REGULATION OF ADMISSIONS) ORDER, 1974 In exercise of the power conferred by clauses (1) and (2) of article 371-D of the Constitution of India, the President has made, with respect to the state of Andhra Pradesh, the Andhra Pradesh Educational Institutions (Regulation of Admission) Order, 1974 which is referred to as the Presidential Order. This order provides for reservation of seats in favour of local candidates in courses of study provided by the Universities and other educational institutions subject to the control of the State Government. 3.5.05 Following the Presidential Order, there are now two kinds of Universities and institutions of higher learning with two different systems of reservations for the students of the three regions. First, there are 17 universities and educational institutions (Appendix 3.10) which have a State-wide jurisdiction (referred to as State universities). For admission to these, the state is divided into 3 areas: . Osmania University area comprising of the 10 districts of Telangana region . Sri Venkateswara University area comprising of the 4 districts of Rayalaseema region and Nellore district of coastal Andhra region . Andhra University area comprising of the remaining 8 districts of coastal Andhra region The seats in the state institutions are to be allocated in the ratio of 42%, 22% and 36% to the candidates from Andhra University area, Sri Venkateswara University area and Osmania University areas respectively. The basis for this is not mentioned in the Order but roughly corresponds to the population shares of the areas at the time. More recently, there have been demands from Telangana for a larger share to bring it in proportion with its current population share. 3.5.06 Second, there are non-state-wide Universities and non-state-wide educational institutions subject to the control of the State Government (hereafter referred to as regional universities) where 85% of the seats are reserved for the local candidates (Appendix 3.12) and the remaining 15% are open seats. There are certain grievances of Telangana region related to the local/open distinction which is taken up in a later section of the Chapter. Until 2006, there were six regional universities (Appendix 3.11) in the state (two each in coastal Andhra, Rayalseema and Telangana regions). Higher education (particularly technical/professional education) is an important means of economic and social mobility and is much sought after in the State. The state has been catering to the growing demand for higher education by expanding capacity and ten new Universities (four in Telangana, three in coastal Andhra and three in Rayalseema) have been set up in the last few years. The region-wise spread of government and aided degree colleges is given in Table 3.3 followed by an analysis of it. Table 3.3: Region-wise data for Govt. and Aided Degree Colleges (2008-09) Regions Number Enrolment Lecturers Stu Lec Ratio Govt Aided Total Govt Aided Total Govt Aided Total Govt Aided Total Telangana inc Hyd 106 53 159 88956 52405 141361 1881 1799 3680 47.00 29.00 38.00 Telangana exc Hyd 99 17 116 80839 17232 98071 1675 539 2214 48.00 32.00 44.00 Rayalaseema 54 25 79 46368 29819 76187 1093 1025 2118 42.00 29.00 36.00 Coastal Andhra 80 101 181 48758 116455 165213 1501 4307 5808 32.00 27.00 28.00 Source: Higher Education Department, Govt. of Andhra Pradesh It is clear from the above that: (1) There are more colleges and students in degree colleges in coastal Andhra than in Telangana6 even though the two regions have comparable number of youth population. This is mainly due to the lesser number of aided colleges in Telangana since the number of government colleges is more in Telangana. This is due to historical reasons such as existence of large number of aided colleges in the coastal region even at the time of formation of the state etc. as explained in Appendix 3.16. District data (Appendix 3.13) shows that Karimnagar in Telangana has the largest number of students in government degree colleges in the state, followed by Anantapur and Chittoor in Rayalaseema and Mahbubnagar in Telangana. As Telangana was a late comer to higher education and due to policy change relating to funding of aided colleges, it has fewer aided colleges. (2) The student lecturer ratios are higher in Telangana and Rayalaseema as compared to coastal Andhra particularly in government colleges showing less number of lecturers are appointed per 100 students. The ratio is extremely high in case of Adilabad (82) and Karimnagar (61) in Telangana region. Filling of teacher vacancies is of the utmost importance to make teaching effective and bring about better quality education. Other districts with somewhat high ratios (exceeding 50) are Visakhapatnam in coastal Andhra and Nizamabad in Telangana. 6 If Hyderabad is excluded from Telangana, the numbers fall sharply showing the large concentration of colleges and students in Hyderabad. Technical and Professional Education 3.5.07 Andhra Pradesh has seen an unprecedented growth in the number of professional colleges since 1996. The number of engineering colleges grew from 37 in 1996 to 540 in 2008-09 (a growth of 1359%). The number of students in these engineering colleges grew from 10455 to 175767. The number of pharmacy colleges increased from 6 to 256 during this period (growth of 4167%) and the number of students enrolled increased from 310 to 15320. The number of MBA colleges increased from 57 in 1996 to 499 in 2008-09 (growth of 775%) and the intake of students during this period increased from 2145 to 37443. The number of MCA colleges saw an increase from 44 in 1996 to 698 in 2008-09 (growth of 1486%) while student enrolment increased from 1330 to 46668 over this period. Table 3.4 gives region-wise number and seats in engineering and other professional colleges (government and private). Table 3.4: Region-wise data on Professional Colleges (2009-2010) Engineering Pharmacy B.Ed MBA MCA Law Regions No Seats No Seats No Seats No Seats No Seats No Seats Telangana inc Hyd 286 69407 159 6766 248 26292 404 19835 253 12768 17 2649 Telangana exc Hyd and Rangareddy 134 31483 92 3929 178 18589 180 8870 47 4336 5 702 Rayalaseema 87 20285 27 1198 115 12238 122 5976 75 3743 13 2242 Coastal Andhra 233 55913 93 3945 241 26134 256 11632 226 10495 21 2851 Source: Department of Higher Education, and Commissioner of Technical Education, Govt. of Andhra Pradesh Though Telangana has more technical and professional colleges/institutions than the other two regions, most of these are concentrated in Hyderabad and Rangareddy districts (See Appendix 3.14). When we exclude the colleges in Hyderabad and Rangareddy, Telangana falls behind coastal Andhra while Rayalaseema remains behind (except for B.Ed. and Law) the other two (taking the relative population into consideration). Most of these engineering, MBA and MCA colleges are private and driven by the market forces, so it is easy to understand why they are concentrated in Hyderabad and Rangareddy in Telangana and in the prosperous districts of coastal Andhra. On its part, the government should therefore, locate new government colleges in future in underdeveloped and underserved districts and also encourage private sector to open colleges there by offering incentives/subsidies. 3.6 Educational Facilities in Hyderabad and Rangareddy 3.6.01 It is important to consider Hyderabad and Rangareddy separately as a lot of concentration of facilities has taken place in these districts. Access to education in Hyderabad is therefore of utmost concern to all three regions of the state. Students in all three regions repeatedly emphasized the importance of access for both education and jobs. Hyderabad falls into zone 6 and many parents send their children here in order to attain 4 yrs of schooling in the zone which then makes them eligible for admission to institutions located in Hyderabad and Rangareddy. Hyderabad has a literacy rate of about 79% and has also recently become an important centre for software/information technology sector in India today. It is considered to be the hub of higher education in the state since many national universities and institutes are located here such as University of Hyderabad, National Institute of Fashion Technology (NIFT), National Institution of Rural Development (NIRD), International Institution of Information Techonology (IIIT), Indian School of Business (ISB) etc. A complete list of important state and national institutions is given in Appendix 3.15. There have been some complaints from Telangana separatists that institutions meant for other districts of Telangana are re-located to Hyderabad/Rangareddy or Medak, depriving local people of easy access and making them available to all those from other regions who manage to achieve zonal resident status. This issue is taken up in the later part of the Chapter. 3.6.02 With a population of over six million, the Hyderabad urban agglomeration is spread over 700 sq. km. of area (which includes parts of the neighboring districts e.g. Rangareddy). Within this, Hyderabad district comprises about 200 sq. km of area with the erstwhile Municipal Corporation of Hyderabad (MCH), Secunderabad cantonment and Osmania University. Most of the educational facilities, particularly for higher and professional education, are concentrated in and around Hyderabad. The data available to us is district-wise and there we find that it is Rangareddy (and not Hyderabad) which is leading in respect of the number of professional colleges (See Appendix 3.14). 3.6.03 In terms of school education, Hyderabad has the least number of schools at primary and upper primary levels among all the districts of Andhra Pradesh; though it has a substantial number of students at those levels. At high school and junior college level, the enrolments in Hyderabad are the second highest next only to Rangareddy. School education in Hyderabad is dominated by the private sector for the middle and upper middle classes, whereas the poor depend on govt. schools7. In recent years, a new class of elite schools has come up with the claim that they are “global”. While private schools in Hyderabad are much sought after, the infrastructure in government schools is reported to be deficient8, especially in the old city which is mainly populated by the Muslim minority. Muslims have argued that their children lag behind in education and access to jobs and that Urdu schools and Urdu teaching in the city have declined since the merger. In order to address grievances of Muslims it is imperative that quality of schools in the Old City area be improved. 3.6.04 The quality of government primary schools overall needs to be improved as the poor and marginalized sections depend upon these schools and any attempt at equalizing opportunities for them has to begin at the primary school level. 3.7 Issues raised/Specific Cases brought out by Political/Other Groups/Representations In case of college/university education, specific cases of alleged discrimination have been raised by various political parties and other groups who made oral and written representations to the committee. The important ones are taken up for examination in this para. 7 Ramachandraiah C. „Perpetuating the Divide and Implications for Human Development: Poor Status of Government Schooling in Hyderabad. in Mahendra Dev, C. Ravi and M. Venkatanaryana (eds.) Human Development in Andhra Pradesh: Experiences, Issues and Challenges, 2009, Centre for Economic and Social Studies, Hyderabad. 8 A survey of 391 schools in the Old City in 2004 by a non-governmental organization (PUCAR-People.s Union for Civic Action and Rights) found that about 69 per cent of students dropped out in 2002-03; 410 teacher posts were vacant; 259 schools had no drinking water facility; 270 schools did not have electricity; 121 had no toilets; 174 were functioning in rented buildings; 137 buildings were not in good condition; and that most of those schools had only two rooms. There were about 68334 students in the primary and pre-primary classes in these schools. The survey further showed there was a requirement of 460 additional classrooms in these schools. In more than 75% of schools, the student-teacher ratio exceeded the prescribed limit (1:40) and was as high as 1:120 in some schools. All this has an adverse effect on the quality of education and performance of students. Of the 20 high schools that recorded 0% pass in the secondary school certificate (10th standard) examination in May 2006, six were in Hyderabad city (5 in old city). (Source: Ibid.: p. 366) Grants to Regional Universities 3.7.01 Many groups have submitted before the committee that grants made to regional universities have been discriminatory with per capita block grant to the universities in Telangana being less. According to representations received from political parties/groups (Telangana Rashtra Samithi - TRS, Telangana Development Forum, Telangana group of Telugu Desam Party, Telangana Congress group), the per capita annual block grants to the six old universities are given in Table 3.5. Table 3.5: Per capita Grant as Calculated by Various Political Groups University Annual Per capita (Rs.) Andhra University 35500 Nagarjuna University 22700 Sri Venkateswara University 37500 Sri Krishna Devaraya University 25000 Osmania University 17400 Kakatiya University 14000 Source: Memorandum submitted by TRS and other groups to CCSAP These representations mention the source for the above table to be Budget Documents for the years 2004-09 presented to the AP Assembly. The state government.s clarification (Appendix 3.16) on a query by the Committee to authenticate the above is given in Table 3.6. Table 3.6: Block Grants Released to Regional Universities Sl. No Name of the University No. of Students in the University Block grant released (Rs.Crores) 2006- 07 2007- 08 2008- 09 2009- 10 Avg. /year Avg./ Capita (Rs.) 1 Osmania 17079 93.00 93.00 49.22 75.00 77.55 45408 2 Andhra 13900 77.26 77.26 40.72 61.08 64.08 46100 3 Kakatiya 3902 23.72 23.72 24.87 18.75 22.77 58344 4 Nagarjuna 2500 14.85 14.85 7.77 15.50 13.24 52968 5 Sri Venkateswara 10500 42.13 42.13 44.75 33.60 40.65 38717 6 Sri Krishnadevaraya 1772 14.83 14.83 15.51 11.63 14.20 80118 Note: (1) The student strength data pertain only to University Campus and Constituent Colleges. (2) It does not include strength of the affiliated colleges and Distance Education Students. (3) The Block grant released is towards salaries and pension of the staff working in the University. Source: Department of Higher Education, GoAP 47814 44696 47147 0 10000 20000 30000 40000 50000 60000 Telangana Rayalaseema Coastal Andhra Figure 3.13: Percapita Block Grants to Six Regional Universities (Average for 2006-2010) As is clear, the average per capita in the two calculations is very different. It appears that the calculation made by the political groups mentioned above is based on a larger number of students perhaps including students in affiliated colleges etc. The Committee felt that it is not correct to compare block grants to universities in this manner since there are many categories of students in a university - residential, day scholars, PG students and a large number of undergraduate students in constituent and affiliated colleges, and dividing the total grants by the total number of students to calculate per capita grant implies treating all of them as the same. Therefore, the per capita annual grant or expenditure per student was calculated separately for students in six regional universities (including constituent colleges), students in government colleges and students in polytechnics in the three regions and is presented in the figures 3.13, 3.14 and 3.15. Source: Data received from the Department of Higher Education, GoAP 8073 7614 9192 11558 0 2000 4000 6000 8000 10000 12000 14000 Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra Figure 3.14: Expenditure per Student in Govt. Degree Colleges Average for the Years 2006-10 48430 42820 76170 47040 0 10000 20000 30000 40000 50000 60000 70000 80000 Tel inc Hyd Tel exc Hyd Rayalseema Coastal Andhra Figure 3.15: Expenditure per student in Govt. Polytechnics (Average for the years 2004-05 to 2008-09) Source: Data received from the Department of Higher Education, GoAP Source: Data received from the Commissioner of Technical Education, GoAP 3.7.02 As is clear from the above though the block grants to the six regional universities when calculated per capita and presented region-wise (Figure 3.13) show that it is least in case of Rayalaseema and highest for Telangana, the expenditure per student in case of Government degree colleges (Figure 3.14) and Polytechnics (Figure 3.15) is, however, less in Telangana. The expenditure per student in the Government Polytechnics (Appendix 3.17) shows large inter- district variations as well. District-wise per capita expenditure in most years (from 93-94 to 2008-09) is highest in Anantapur and lowest in Mahbubnagar and the difference is significant with Mahbubnagar getting roughly one-fifth of Anantapur. The basis on which funds are distributed is not entirely clear. 3.7.03 In case of new regional universities also the grants are alleged to be discriminatory. As per TRS document block grants released between 2006- 2009 to Telangana University in Nizamabad and Mahatma Gandhi University in Nalgonda respectively were 29.5 crores and 30.5 crores while that released to Yogi Vemana University in Kadapa for the same period was 300 crores. Based on the information received from the State Government and field visit to Yogi Vemanna University, it is concluded that though Yogi Vemana University has been given more grants than the other two universities cited, the figure of 300 crores mentioned is substantially exaggerated. Allocation of funds to private aided colleges 3.7.04 Many groups argued before the Committee that the government has discriminated against the region by providing a huge chunk of aid to private colleges (Junior as well as Degree) in coastal Andhra and Rayalaseema with very little to the private colleges in Telangana. A clarification was sought by the Committee about the basis for deciding grants to private colleges. The response from the Higher Education Department, Government of Andhra Pradesh is given in Appendix 3.16. It confirms that the aid to the private colleges in Telangana is much less than that in coastal Andhra and Rayalaseema but clarifies that it is a result of historical factors and that there is no intentional discrimination against any particular region. It also brings out that an attempt is being made to restore equity by having more government colleges in the Telangana region. However, the data received from the State Government shows (Appendix 3.16) that the combined amount released to government and aided colleges together is Rs. 93 crores in Telangana while it is 224 crores in coastal Andhra (with college going population similar to that in Telangana) and 91 crores in Rayalaseema (with population share being less than half that in Telangana). There is a strong case therefore to allocate more funds to Telangana colleges. As the scheme of granting aid to private colleges is being phased out and no new colleges are admitted for grants since 1985, this may be done by granting more funds to and opening more government colleges in the underserved districts of the region. Location of State Universities/Institutions 3.7.05 Another issue brought up before the Committee is regarding the distribution of the above facilities region-wise. While state level institutions are spread out in many districts of coastal Andhra and Rayalaseema, in Telangana region they are located only in the capital city Hyderabad. It is pointed out that JNTU originally proposed to be located in Warangal was shifted to Hyderabad and Dr. B. R. Ambedkar Open University located in Nalgonda district was also shifted within two months to Hyderabad. The reason given was that state level universities should be located in the state capital; however, this principle was not followed in the case of many state level universities/institutions that were started in coastal Andhra and Rayalaseema regions. The new IIT was proposed to be set up in the temple town of Basar in Adilabad district but later shifted to Medak district near Hyderabad. It is asserted that indirect benefits in terms of employment and development of the area around a state level institute/university are denied to the 9 districts of Telangana while 4 state level institutions have been located in one town (Tirupati) of district Chittoor in Rayalaseema region. 3.7.06 First of all, it needs to be clarified that since seats in the state level institutions are allocated to the students in the three regions in a pre-determined ratio (42% to students from Andhra University area, 36% to students from Osmania University area and 22% to students from Sri Venkateswara University area), the location of these does not in any way affect chances of getting admission into these on the basis of residence/schooling of students from any region. Also there are regional universities which are equitably distributed among the three regions and new regional universities have been established in the educationally deprived districts in recent years. The issue of location of a state university is, therefore, significant only in terms of the economic benefits provided by its location in a district. 3.7.07 The state government.s reply on the query relating to the above issue clarifies (Appendix 3.16) that “… the existence of a large number of Industries, R & D labs, other educational institutions in the vicinity and opportunities for interaction and collaboration due to proximity to an International Airport facilitating interaction with international Institutions and Academies and for the convenience of Students and Professors, who are coming from the national level, the IIT proposed at Basar in Adilabad District is shifted to Medak District, which is about 50 KMs from Hyderabad.” These seem to be pragmatic reasons and we know that elsewhere in the world certain cities (Oxford, Cambridge etc.) have become the hub for higher education due to many direct and indirect benefits for students as well as institutes which result from such concentration. Therefore, while there is a strong case for dispersal of primary, secondary and high schools as well as junior and degree colleges and to some extent regional universities across villages/towns/districts in a balanced way, one needs to be more pragmatic when it comes to the location of state/national universities. It is also well known that preferences of politicians in power can play an important role in deciding the location of universities. However, the emergence of Hyderabad and Warangal in Telangana, Chittoor and Kadapa in Rayalaseema and Visakhapatnam and Guntur in coastal Andhra as educational hubs seems to indicate that all three regions are currently being served well. Seats in Professional Colleges 3.7.08 Many groups pointed out in their submissions that seats available to the students in Telangana region in professional colleges, particularly medicine and dentistry are less than in proportion to their population. It is stated that there are four government medical colleges for the four districts in Rayalseema, whereas there are only two medical colleges for the 9 districts in Telangana (excluding Hyderabad) and as a result, even students with a high rank cannot get a seat. In nursing also, there are several colleges in Rayalaseema whereas Telangana has only one college which was established during the Nizam period. 3.7.09 The growth of professional colleges (Appendix 3.16) clearly brings out that there is a large concentration of professional colleges in Rangareddy district of Telangana. However, as per information received from the state (Appendix 3.18), about 97% of the engineering colleges are unaided private colleges and only 19 out of the 707 (less than 3%) are government colleges. Of these, only 2 colleges are located in 9 districts of Telangana (excluding Hyderabad), 5 are in coastal Andhra, 6 in Rayalaseema and 6 in Hyderabad. 3.7.10 A look at growth of medical colleges and seats over a period of time brings out much slower growth as compared to engineering and MBA colleges. There were two medical colleges in Telangana and two in coastal Andhra up to 1991-92. One medical college was added in Telangana in 1992-93 and another one in 2008-09. During this period, three more colleges have been added in coastal Andhra and four in Rayalaseema. Now, there are four medical colleges for the four districts of Rayalseema, five medical colleges for the nine districts of coastal Andhra and only four (of which two are in Hyderabad) for the ten districts of Telangana. Therefore, there is a strong case for opening of more medical colleges in Telangana region. Other Issues Following other issues have been brought before the committee: Residence qualification and access to educational institutions 3.7.11 That students/groups in Telangana do not go to the other regions for education while many students from the other two regions take admission in the regional institutions located in Telangana, particularly, those located in the capital city by virtue of shorter residency requirement (4 years of schooling under the Presidential order as against 15 years under the earlier „Mulki. rules) for qualifying as a local. It has been alleged that many admission seekers from other regions simply acquire fake certificates. Students from coastal Andhra, on the other hand complain that they are considered as non-locals for admission to institutions located in the capital of their own state. As explained earlier, admission to various educational institutions in Andhra Pradesh is governed by the Presidential Order and subsequent legislation flowing from therein. It is at present beyond the scope of this Committee to evaluate the fairness of these systems and suggest alternatives. However, the claim of fake certificates can be looked into by the State Government and the Right to Information Act can be used by complainants to get justice. 3.7.12 The information provided to the Committee by the Commissioner of Collegiate Education A.P. and the Department of Technical Education A.P. shows that at least 85% (and in a large number of cases 90% and even 98%) students in various professional colleges are local (Appendix 3.18). 3.7.13 It was brought to the notice of the Committee that in case of admission to private engineering colleges G.O. MS. 184, Education Department dated 20/08/1993 and G.O. MS. No 227, dated 22/7/1994 stipulated that all the seats in the private engineering colleges in the state be pooled subject wise and distributed among the regions in the ratio of 42%, 36% and 22%. As a result, the students in Telangana had access to only 36% seats in the private colleges located in Telangana region instead of 85% under the Presidential Order. It is true that they could lay claim to 36% seats in private engineering colleges situated in coastal Andhra and Rayalaseema but very few of them, it is contended, could afford to go to study there. The matter has already been decided by Justice B. Subhashan Reddy and Justice T. Ranga Rao (J. Sameerana v. A.P. State Council for Higher Education and Others) who held that “the provisions of Andhra Pradesh Educational Institutions (Regulations of Admissions) Order, 1974, are applicable to all the private Engineering Colleges in the state of Andhra Pradesh including the minority institutions; and that admissions shall be made only in accordance with Para 5(1) of the above Order in reserving 85% of the available seats in the respective local areas mentioned in Para 3 and for the local candidates mentioned in Para 4 thereof” and that the State Rule, 1993, becomes nonest of Presidential Order overriding the state rule. A matter of complaint has been that during this period of 6 years (1993-98), several students of Telangana region could not pursue Technical Education and the number of such students amounts to more than 1.5 lacs in admissions to Engineering, Agriculture, Pharmacy, and Medical Courses. The committee feels that the said rules have already been made null and void and it is not possible to do anything further in this case. Pass marks in school leaving examination 3.7.14 Telangana students have complained that pass marks for English are 35 while it is only 18 for Hindi in the school leaving exam. Also, the marks obtained in English are included in calculating the overall percentage, but the Hindi marks are not included. As a result, Telangana students who are more proficient in Hindi suffer while Andhra students are at an advantage. The state government should look into the reasons for the skewed requirements and arrive at a more rational and just set of rules. Equally, efforts must be made to improve English language learning in those areas of the state where students are deficient in the language as it is increasingly tied to future employment prospects. 3.8 Summing Up 3.8.01 The educational and health status of people is an important indicator of their quality of life. We looked at the education dimension in detail by examining a) the educational indicators b) the spread and availability of education infrastructure and c) the funds granted in the three regions of the state. The differences in all these aspects were examined and the issues raised by different groups and people before the Committee were considered and analysed in order to assess if there has been any deliberate neglect or discrimination of Telangana region and what efforts are needed to bring backward areas of the state on par with others. 3.8.02 Andhra Pradesh is doing far better than the average Indian state in respect of physical access to primary schools. In the state, around 90% of the population is served by primary schools within their habitation. Although the literacy rate in Telangana region remains lower than the rest of Andhra Pradesh, it is evident that the gap has been narrowing since 1971 and the growth in literacy rates is highest in Telangana region. Also the differences (across the three regions as well as between districts) in access to schools at all levels are not wide and have in fact been coming down over the past few decades. Having achieved success in physical access to schooling, the state now needs to concentrate more on the quality of schooling (particularly in government schools) and on improving learning outcomes which have been reported to be somewhat deficient. Telangana region in general and the districts of Rangareddy and Hyderabad in particular have the largest number of High Schools and Junior Colleges (including Higher Secondary Schools). An increasing number of parents from all three regions prefer to educate their children in schools in Hyderabad and Rangareddy (Zone 6), as four years of schooling here makes them eligible for admission in institutions of higher and professional education which are concentrated in this Zone. 3.8.03 Telangana (in particular Hyderabad) also has the highest educational attainment levels – this is given by the lowest fraction of “only primary level” achieved and the highest fraction of those with “at least a higher secondary education”. Dropout rates at the primary (and to some extent at the middle school) level remain high in some districts of Telangana which needs to be looked into and addressed. However, at the high school level there is little regional variation and all three regions have a few districts with relatively higher dropout rates. Among facilities for social groups, Telangana region has relatively fewer hostels per lac SC population than the other two regions but the gap is less in 2001 than in 1991. Also, the gap in the number of SC students enrolled in these hostels per lac SC population is quite low in 2001. The number of ST hostels per lac ST population is less in Telangana but the number of ST students enrolled in these per lac ST population is more than in coastal Andhra showing the high demand for these in Telangana. This reinforces the finding (Chapter VII) that ST students are rapidly gaining from education despite structural barriers. 3.8.04 Students and academics from Telangana brought to the notice of the Committee that pass marks in various subjects (Hindi, English, Urdu and Telugu) were unfavourable to them – lower marks are needed for Hindi and higher for English and Telugu – this is to the disadvantage of Telangana students. It is, therefore, suggested that pass marks in various subjects and subjects which count towards the overall score for admission purposes can be rationalized in such a manner that students from any particular region are not disadvantaged. The state government may also enquire into and deal with the issue of fake domicile certificates, if any, for admissions to educational institutions as local candidates. 3.8.05 It is heartening to note that there is a significant demand for higher and professional education (particularly engineering) in Andhra Pradesh in general and in Telangana region in particular. As a result, the state has witnessed unprecedented growth in the number of institutions (many of them private) imparting engineering education since mid 1990s and in management and computer applications courses in recent years. However, the distribution of institutions is spatially skewed within Telangana region with the largest concentration being in Rangareddy district. (Appendix 3.14) Therefore, though the regional data show that the number of engineering, pharmacy, MBA and MCA colleges in Telangana is more than its share of population, it becomes noticeably smaller if we subtract the colleges located in Rangareddy (Appendix 3.14). Districts like Adilabad are particularly underserved. Similarly, a large number of National and State level educational institutions are concentrated in and around Hyderabad (Appendix 3.15) a reflection of inevitable urban and capital city bias. There is thus a strong case for a more even spread of facilities in higher, technical and professional education among regions and districts of the state. 3.8.06 After a thorough analysis of the issues raised by Telangana groups before the Committee relating to grants to and location of educational institutions (Para 3.7), we reached the conclusion that though some of these are valid, not all are of the claimed magnitude. While the progress of literacy and access to schooling is satisfactory in Telangana, there are some differences in allocation of funds and location of institutions (as explained in sub-Paras 02, 03, 04, 09 and 10 of Para 3.7 above) that need to be rectified. Although some variation in grants and location of major institutions is often a function of political compulsions and may be difficult to avoid in a democratic system based on support of one.s own constituency, efforts should be made to ensure that government expenditure is regionally equitable. In recent years, the state has attempted to bring about uniformity by locating new regional universities equitably in all the three regions. However, there is some disparity in medical colleges. At present, there are four medical colleges for the four districts of Rayalseema, five for the nine districts of coastal Andhra and four (of which two are in Hyderabad) for the ten districts of Telangana. The Committee feels that establishing a medical college in North Telangana would redress an important imbalance. 3.8.07 The data received from the State Government shows (Appendix 3.16) that the combined amount released to government and aided colleges together is Rs. 93 crores in Telangana while it is 224 crores in coastal Andhra (with college going population similar to that in Telangana) and 91 crores in Rayalaseema (with population share being less than half that in Telangana). There is a strong case, therefore, to allocate more funds to Telangana colleges. As the scheme of granting aid to private colleges is being phased out and no new colleges are admitted for grants since 1985, this may be done by granting more funds to and opening more government colleges in the underserved districts of the region. 3.8.08 As in the rest of the country, the „demographic bulge. at present is in favour of the youth population in Andhra Pradesh. One of the most important findings is that youth literacy rate in Telangana which was behind those of the other two regions in 1983, is ahead of the other two regions in 2007, showing the highest percentage increase over the period. Not only this, the number of years of schooling among the population aged 8-24 increased fastest in Telangana taking it from the third place in 1983 to first place in 2007 among the three regions. This shows that the youth population of Telangana is seeking careers outside agriculture by prioritizing education and once having acquired education they are keen on suitable jobs. Some of their grievances and expectations of change in a separate state of Telangana can be attributed to non-fulfillment of their career hopes. 3.8.09 Most young people in AP have a preference for technical and professional education due to better employment opportunities available in these sectors of a globalizing economy. The state government.s policies of providing scholarships/fee reimbursements and hostel facilities to students from socially and economically backward groups/communities have resulted in the positive development of a large number of students from such groups entering professional education. This has also stimulated and sustained the growth of private institutions in these fields. While government jobs are still sought after, many more opportunities are now available in the private sector. The growth of the service sector has been very rapid as discussed in the Chapters on Economic Equity and Hyderabad Metropolis in the Report. Despite this, jobs, as elsewhere, have not kept up with the supply of graduates and at present there appears to be an excess of technically and professionally educated youth in the state. There is also possibly a mismatch between the skills of many graduates with those required by employers. The poor quality of many such private colleges (engineering in particular) and lack of soft skills contributes to the problem whereby students find only low paying or no jobs after graduation. The frustration of the youth when their expectations are not met is exploited by politicians who claim that their inability to get a job commensurate with their degree is due to discrimination against Telangana people thus causing interregional and inter-community disaffection. 3.8.10 The Committee feels that the state government must concentrate on providing quality education to students. The Committee noticed (see sub-para 3.7.09) that there are very few government funded engineering colleges (only 3%) and, therefore, recommends that more government engineering colleges may be started in all regions and particularly in Telangana outside of Hyderabad. Suitable emphasis must be laid on quality improvement and skill development. Additionally, education offered by private institutions needs to be better monitored by the state government. In order to develop competitiveness in the market, it may be a good idea to introduce English as a language at an early stage in government schools. 3.8.11 Field visits brought out that many students with higher education qualifications in Telangana are first generation college entrants (from rural families and whose parents are illiterate) and therefore have very high expectations of finding well paying jobs, in particular, in the government/public sector. It seems that it is the inability of such graduates to fulfill their aspirations that is responsible for their disappointment, disillusionment and frustration. Such students are likely to turn to those who promise them a better future. Large scale involvement of students including those from Dalits and Backward Castes in the current movement for Telangana seems to testify to this. A large proportion of student leaders of the movement located in Osmania and Kakatiya Universities is known to be from Dalit/BC background. According to many sources, purported student suicides during the course of the agitation are also largely by Dalit and Backward Caste students. While lack of suitable employment is rarely due to discrimination and more due to lack of adequate training, the perception of neglect or discrimination needs to be addressed in order to bring students back into the mainstream. Improving the quality of education and solving the problem of unemployment among educated youth will have a positive impact on their attitude towards agitations. PART II: HEALTH During the interactions of the Committee with various groups in Hyderabad and the field visits to the three regions, health related issues were generally not raised. However, as stated earlier the education and health status of people is an important indicator of their well being and, therefore, this section attempted to look at the regional spread of health facilities and health outcomes. 3.9 Health Infrastructure This Para presents the regional spread of government health facilities i.e. the number of Hospitals, Dispensaries, Primary Health Centres (PHCs), Hospital Beds and Doctors, is analysed per lac population between 1961 and 2009. Though there is considerable data on health facilities in the public sector, there is little information available on the private sector. Para 3.9.01 to 3.9.06 present data relating to government medical facilities in the three regions while Para 3.9.07 and 3.9.08 throw light on the size of the private sector in the state health infrastructure. Allopathic Dispensaries 3.9.01 The total number of allopathic dispensaries in the state increased from 564 in 1960-61 to 1680 by 1990-91 but thereafter it declined and stood at 289 in 2009. As a result the number of dispensaries per lac population has declined drastically over this period. One of the reasons for the decline is that many dispensaries have been upgraded to Primary Health Centres9. Regional distribution of number of dispensaries per lac population (Figure 3.16) brings out that the number of dispensaries per lac population in Telangana including as well as excluding Hyderabad has always been less than in Rayalaseema and coastal Andhra. 9 Increase in the number of PHCs (3.5.03) may seem not to reflect this though because a single PHC (along with its subcentres) serves a larger area than 2 or 3 dispensaries. 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 1960-61 1970-71 1980-81 1990-91 2000-01 2008-09 Figure 3.16: Regional Distribution of Dispensaries per Lac Population Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra Source: Statistical Abstract of Andhra Pradesh (Various Issues) However, as dispensaries have been replaced with PHCs in the state, it is better to look at the regional distribution of the latter, of Hospitals and Hospital beds and doctors before arriving at any conclusion about regional distribution of health infrastructure. Primary Health Centres (PHCs) 3.9.02 The Primary Health Centres are the backbone of the public funded medical and health care infrastructure available in the rural areas and provide a variety of preventive health care at the community as well as individual level including reproductive and child health care. The number of PHCs in the state declined from 1422 during 1998-99 to 1386 in 2004 and thereafter increased to 1581 by 2009. While the hospitals at secondary and tertiary level are overutilized, the Primary Health Centres (PHCs) are underutilized mainly due to the non-availability of doctors in PHCs. Several studies indicate that 30% of doctors in PHCs are habitually absent. The NSS shows that the share of PHCs in outpatient (6%) and in-patient care (4.8%) was very low in 2004. Since the PHCs 2.94 2.46 2.53 3.30 2.79 2.69 2.75 2.42 2.51 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 1998-99 31.3.2004 31.3.2009 Figure 3.17: Region wise No. of Allopathic PHCs per Lac Rural Population Telangana Rayalaseema Coastal Andhra serve the rural population only, the number of PHCs is divided by the rural population to arrive at their availability per lac population. Source: Statistical Abstract of Andhra Pradesh (Various Issues) The regional availability of PHCs per lac population (Figure 3.17) shows that the gap between the regions is small and is narrowing. The availability of PHCs in Telangana is close to the state average with Rayalaseema a little more and coastal Andhra little less than Telangana as well as the state average. Number of Allopathic Hospitals 3.9.03 The number of hospitals in Andhra Pradesh fluctuated between 289 and 397 during 1960-61 to 2001 and went up to 481 by 2009. With the population having gone up from 36 million to 76 million during the same period, the availability of hospitals per lac population in the state has gone down from 1.10 to 0.56 over this period. Decrease in budgetary allocations to the health sector has been responsible for the stagnation and deterioration of facilities in public hospitals. Figure 3.18 shows the regional position of government hospitals per lac population since 1960-61. 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1960-61 1970-71 1980-81 1990-91 2000-01 2008-09 Figure 3.18: Regional Distribution of Hospitals per Lac Population Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra Source: Statistical Abstract of Andhra Pradesh (Various Issues) Among the regions, Telangana (including Hyderabad) has remained ahead of the state average in all years and Telangana excluding Hyderabad has also been a little higher than the state average except in 1961. Government hospitals per lac population in Hyderabad were more than double the state average in 1960-61 but have come down since then. Coastal Andhra and Rayalaseema have been a little behind the state average while their respective positions have been changing. Overall the gap between the regions has narrowed and was very small in the last decade. Number of Beds Available in Allopathic Hospitals 3.9.04 The availability of Hospital beds for a certain number of population is a better indicator of health care available than the number of hospitals. As said earlier the total number of government hospitals in the state has increased little resulting in a decline in the per capita availability. In case of hospital beds too, though the number of hospital beds available in the government medical facilities has been steadily rising from over 19 thousand in 1961 to more than 39 0 10 20 30 40 50 60 70 1960-61 1970-71 1980-81 1990-91 2000-01 2008-09 Figure 3.19: Regional Distribution of Hospital Beds per Lac Population Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra thousand in 2009, the increase in population has led to a decline in the availability of beds per lac population from 54 to 46 over the period. Source: Statistical Abstract of Andhra Pradesh (Various Issues) Though Telangana including Hyderabad is ahead of other regions, Telangana excluding Hyderabad is far behind (Figure 3.19). District level figures show that the number of hospital beds per lac population is highest in Hyderabad (148 as against state average of 46). As in education, there is a concentration of facilities in Hyderabad, making for a thinner spread in the Telangana region. The gap between Telangana without Hyderabad and the state average shows an increase between 2001 and 2009. Rayalaseema has gained the most, leaving coastal Andhra behind and increasing the gap between them. Number of Doctors 3.9.05 The number of doctors in the state increased from 1826 in 1960-61 to 10117 (9321 regular and 796 on contract) in 2009. The number of doctors per 0 2 4 6 8 10 12 14 16 1960-61 1970-71 1980-81 1990-91 2000-01 2008-09 Figure 3.20: Regional Distribution of Doctors per Lac Population Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra lac population also shows an improvement from 5 to 12 over this period. The region wise availability of qualified doctors is given in Figure 3.20. Source: Statistical Abstract of Andhra Pradesh (Various Issues) Telangana excluding Hyderabad is trailing behind Rayalaseema and coastal Andhra. The high concentration of doctors in Hyderabad makes the average availability in Telangana including Hyderabad a little more than state average but when Hyderabad is excluded from Telangana, it falls behind the state average and the other two regions. Rayalaseema is ahead of coastal Andhra and the gap between them has increased slightly in recent years. Though at first it may appear as if Rayalaseema is being favoured, the region being poorer than the other two, has relatively less people who are able to afford private health care and, therefore, perhaps more in need of public funded health facilities. A look at the health indicators in the next section brings this out more clearly. 44.72 44.41 44.82 0 5 10 15 20 25 30 35 40 45 50 Telangana Rayalaseema Coastal Andhra Figure 3.21: Multi Purpose Health Assistants Per lac Rural Population Multi Purpose Health Assistants 3.9.06 Besides qualified doctors, the public health care system provides for para medics called ANMs (Ancillary Nurse Midwife) or Multi Purpose Health Assistants. The state at present has 27713 such workers working while 2305 vacancies are still vacant. Region-wise comparison (Figure 3.21) of Number of Multi Purpose Health Assistants per lac rural population shows that there is very little difference. Source: Information received from State Government through Nodal Officer, CCSAP Concentration of Medical Facilities in Hyderabad 3.9.07 Medical facilities in the private as well as public sectors are concentrated in Hyderabad metropolitan area. Of the 17000 (government) hospital beds in Telangana in 2009, as many as 6700 were located in Hyderabad. The number of doctors (in government sector) in Hyderabad was more than 1400 of the total around 4000 doctors in Telangana. Thus the availability of hospital beds and doctors per lac population in Hyderabad was approximately three times the state average. As in the education sector, this reflects urban and capital city bias and the concentration of facilities here has a negative effect on the other districts of Telangana. At the same time, it makes it the preferred destination for health care for people of all three regions. Privatization of Health Care 3.9.08 In Andhra Pradesh, private sector has been playing a major role in health care particularly hospitals since the 80s10. The facilities in the public sector have not increased in proportion to the increase in population. The share of the health sector in the state budget declined continuously from 6.5% in the 5th Five Year Plan (1974-78) to 5.4% in the 9th plan (1997-02) and to 4.5% by 2005-06. In per capita terms, public expenditure on health care decreased from Rs 141 in the 7th FY Plan (1985-1990) to Rs 124 in the 8th Plan (1992-97) in constant (1999-00) prices. Public expenditure on health care as a per cent of SDP (State Domestic Product) declined from 1.29% in the 7th FY Plan to 0.96 in the 8th FY Plan and had further declined to 0.76 by 2005-0611. Thus, there was a continuous decline in budget allocation to health services. In hospitals, there is a growing trend towards corporatization. The first corporate hospital in Hyderabad was established in 1988 and by 2004, the number of corporate hospitals increased to 16 accounting for 57% of beds12. The growth of the private sector, particularly the corporate hospitals, was encouraged directly by the Central and State governments through subsidies in the form of exemptions from custom duties on medical equipment, land grants etc. The lack of government or any other regulation on minimum standards in terms of staff, facilities etc. and on the pricing of services in private hospitals has further widened the scope for profiteering and contributed to the rapid expansion of private medical care13. It has been reported that reimbursement facilities under the CGHS and other government programmes were grossly abused by the corporate hospitals. 10 Narayana K.V. „Public and Private Mix in Medical Care Changing Patterns in Andhra Pradesh. in Mahendra Dev, C. Ravi and M. Venkatanaryana (eds.) Human Development in Andhra Pradesh: Experiences, Issues and Challenges, 2009, Centre for Economic and Social Studies, Hyderabad. 11 Ibid.: p. 301 12 Ibid.: p. 300 13 Ibid. p. 302 Arogya Sri 3.9.09 Recently, the state government also launched Arogya Sri, a publicprivate partnership based social insurance scheme. It is fully financed by the state government and covers major surgeries and certain diseases. Eligible patients can avail the services of public as well as private hospitals which are reimbursed through an insurance agency. Though the scheme looks good as it makes quality health care in the private sector available to the poorest sections of the population, it has been pointed out that the scheme has limitations at two levels. First, the past experience with the CGHS and other schemes indicates that private providers could misuse the scheme for their benefit. Second, it has been argued by some experts that it is not a very effective way of spending public funds to mitigate the health problems of people. The argument is that if the same funds are allocated for primary and secondary care through the public health system, the coverage of beneficiaries would be much wider than the Arogya Sri scheme which is primarily aimed at providing tertiary level medical care. Experts also express fear that in the long run, the diversion of funds on such a large scale to the health insurance scheme would lead to further neglect and collapse of the public health care system14. 3.10 Health Indicators Data relating to reproductive and child health such as extent of institutionalized deliveries and Infant Mortality Rate are important health indicators and are analysed in this section. Maternal Health Indicators 14 Ibid. p. 307-08 3.10.01 The estimates of maternal mortality at state/UT levels not being very robust, Maternal Mortality Rate (MMR) can only be used as a rough indicator of the maternal health situation in any given country. Hence, other indicators of 0 10 20 30 40 50 60 70 80 FANC SD RHI VHW % Health Indicators Figure 3.22: Selected Indicators of Reproductive Health across Regions Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra maternal health status like antenatal checkup, institutional delivery and delivery by trained personnel etc. are used for this purpose. These reflect the status of the ongoing programme interventions as well as give a reflection of the maternal health. Figure below gives the region-wise indicators of reproductive health. Source: Andhra Pradesh Human Development Report, 2007 FANC - Percentage Undergone Full Antenatal Care (i.e. at least 3 visits for ANC + at least one TT injection + 100 or more IFA tablets/syrup) SD - Percentage of Safe Delivery (Either institutional delivery or home delivery attended by Doctor/Nurse) RHI - Reproductive Health Index based on 6 indices, Total Fertility Rate, Birth Order 4+, Skilled attention at the time of birth, IMR, Educational attainment of women, and % Married<18 years. VHW - Percentage of Women visited by ANM/Health worker On the whole, Telangana region seems to be doing well on various indicators of reproductive health (Figure 3.22) and the problem seems to be more at the level of individual districts in each of the three regions with districts in North coastal Andhra appearing to be the worst off (Appendix 3.19). Adilabad in Telangana and Visakhapatnam, Vizianagaram and Srikakulam in coastal Andhra are the worst off districts (institutional delivery less than 60%) while Kurnool in Rayalaseema is also behind in the care received by mothers. 0 10 20 30 40 50 60 70 FI IMR* % Health Indicators Figure 3.23: Selected Indicators of Child Health across Regions Telangana inc Hyd Telangana exc Hyd Rayalaseema Coastal Andhra Child Health 3.10.02 Infant Mortality Rate (IMR) is an important indicator of not only the health status but also the economic and human development of a region. Figure 3.23 shows region-wise indicators of child health. District-wise IMR and extent of full immunization is given in the Table in Appendix 3.19. FI - Percentage of children age 12-35 months received Full Immunisation IMR – Infant Mortality Rate Though Rayalaseema is behind the other two regions in terms of IMR which is the most important indicator of child health, differences at the regional level are not large. However, at district level the differences are huge (See Appendix 3.19). Vizianagaram (in North coastal Andhra) is the worst off with IMR as high as 68 while Hyderabad (in Telangana) has achieved a low IMR of 22. Karimnagar in Telangana (IMR 29) and Krishna and Guntur in coastal Andhra (with IMR 28 and 29 respectively) also seem to be doing well and are only slightly behind Hyderabad. 3.11 Summing Up 3.11.01 Health infrastructure in the state has grown at a slow pace and therefore the per capita availability of many facilities has stagnated or increased marginally. The government health facilities (Hospital Beds and Doctors) per lac population are the highest in Rayalaseema region followed by coastal Andhra region. Although Telangana region, particularly excluding Hyderabad, is behind in these respects, if one looks at health indicators rather than infrastructure, a different picture emerges. Most districts in Telangana are doing well on various indicators of reproductive and child health (RCH) as compared to districts of Rayalaseema and coastal Andhra particularly north coastal Andhra. This seems to be due to the better utilization of available public infrastructure as well as greater availability of and more household spending on private health care in Telangana. Private health care provides the edge in Hyderabad and in some towns of coastal Andhra where large corporate hospitals with modern facilities are concentrated. Medical care in the state is increasingly dominated by private players in the secondary and tertiary sectors. 3.11.02 One notices that districts with the worst reproductive and child health indicators (for example, Vizianagaram in coastal Andhra, Kurnool in Rayalaseema and Mahboobnagar in Telangana) happen to be among the poorest in the state where people may not be able to afford private health care. However, the low level of child immunization in Visakhapatnam, Guntur and Nellore and poor reproductive health indicators in Visakhapatnam and Prakasam in coastal Andhra cannot be explained in terms of poverty and the only explanation seems to be lack of awareness and health consciousness in these areas. The solution, therefore, seems to lie in not only expanding government health care infrastructure in the state in general and poorer, rural and backward regions in particular but also creating awareness about reproductive, child and general health, hygiene and nutrition as well as monitoring the private sector to insure quality and reduce malpractices. CHAPTER 4 WA T E R R E S OU R C E S , I R R IGA T I ON A ND POWE R DE V E LOPME NT PART I: WATER AND IRRIGATION 4.1 Introduction 177 4.2 Major Issues raised in Memoranda and Meetings 180 4.3 Appointment of Technical Expert 181 4.4 General Findings 182 4.5 Summing up 205 PART II: POWER DEVELOPMENT IN ANDHRA PRADESH 4.6 Introduction 217 4.7 Resources 217 4.8 Hyderabad State Electricity Department 218 4.9 Hydro-Dams and Thermal Projects 222 4.10 Power – Gas 225 4.11 Power-Diesel and Non-conventional sources of energy 226 4.12 XII Plan Capacity Addition 227 4.13 Transmission and Distribution 227 4.14 Agriculture Sector 229 4.15 Hyderabad 230 4.16 Issues raised by various organizations 231 4.17 Power Sector Key Indicators 232 4.18 Findings 240 4.19 Suggestions to improve the situation of power in Andhra Pradesh 243 4 WATER RESOURCES, IRRIGATION AND POWER DEVELOPMENT PART I: WATER AND IRRIGATION 4.1 Introduction 4.1.01 Andhra Pradesh has a total geographical area of 2,75,100 square kilometers with a coastline of 960 kms running from Ichapuram in the north to Srikakulam District to Pulicat Lake in the south in Nellore district. The state comprises three regions, coastal Andhra, Rayalaseema and Telangana with twenty three districts and has a population of over 76.21 million (Census 2001). The current estimates peg the state.s population at over 80 million. Geographically, Andhra Pradesh is in peninsular India consisting of what is commonly known as the Deccan Plateau in the north-west, coastal belt in the east and Rayalaseema in the south-west. Andhra Pradesh, therefore, has the advantage of having most of the east flowing rivers in the heart of the state bringing in copious supplies from the Western and Eastern Ghats and the Deccan Plateau upto Bay of Bengal. 4.1.02 Andhra Pradesh is a riverine state with forty major, medium and minor rivers. Godavari, Krishna and Pennar are three major inter-state rivers which flow through the heart of the state. Besides these, there are five interstate rivers north of Godavari which flow through Orissa and Andhra Pradesh and four rivers south of Pennar that flow through Andhra Pradesh and Tamil Nadu. Apart from the above twelve rivers, twenty eight medium and minor rivers flow within Andhra Pradesh. (Figure 4.1) 4.1.03 The dependable yield from Godavari, as allotted by Godavari Water Dispute Tribunal (GWDT) to Andhra Pradesh, has been estimated by the Andhra Pradesh Government to be 1480 Thousand million cubic feet (TMC). From Krishna, the Krishna Water Dispute Tribunal (KWDT) has allotted 811 TMC, from Pennar as per Andhra Pradesh Government 99 TMC, is available. After including some additional yield from the other small rivers, the total comes to 2769 TMC. The water utilization, so far, is only 1933 TMC irrigating 61.66 lakh hectares against the possible cultivable area of 157.78 lakh hectares. About 70% of the population of Andhra Pradesh depends upon agriculture. Figure 4.1: Basin Map of Andhra Pradesh 4.1.04 Andhra Pradesh has a heritage of cultivation and irrigation dating back to several centuries. Earlier rulers paid a good deal of attention to the development of irrigation in their kingdoms for the benefit of their subjects. Big lakes like Ramappa, Pakhal, Laknavaram are still remembered. Cumbhum Tank, Kanigiri Reservoir, Anantapur Tank, Porumamilla Tank, Mopad Tank, Nandyal Tank and anicuts across Tungabhadra River such as Koregal, Vallabhapur, Raya and Basavanna are some of the major irrigation works inherited by the state from the Vijayanagar kings. The anicut across river Godavari at Dowlaiswaram, across Krishna at Vijayawada, across Pennar at Nellore Sangam, K.C Canal System and others are the legacy of British engineers like Sir Arthur Cotton, Sir Charles Alexander Orr and Col. J John Penny, who transformed lakhs of hectare of barren lands in coastal Andhra into a big rice bowl during the 19th Century. 4.1.05 Since independence, impressive strides have been made in irrigation development in India. The Government of India has accorded high priority to the harnessing of river waters for overall economic development in the country. Several reservoirs have been constructed across rivers and their tributaries to store and regulate river flows under multi-purpose, major, medium and minor irrigation projects for optimal beneficial use of water. Accordingly, Andhra Pradesh has also been a beneficiary of this overall developmental process. 4.1.06 River Basins (i) Andhra Pradesh can be divided into 40 big and small river basins which have been categorized into 5 groups:- (a) Krishna River Basin (b) Godavari River Basin (c) Pennar River Basin (d) Vamsadhara River Basin (e) Other River Basins (ii) The State Irrigation Department has taken up the construction of some major projects namely Nagarjunasagar Project, Kaddam Project, Sriramsagar Project Stage-I, Vamsadhara Project Stage-I, Somasila Project, Tunga-Bhadra Project, High Level and Low Level Canal Projects and Rajolibanda Diversion Scheme. Further, Godavari and Prakasam Barrages have been constructed in place of the old anicuts across rivers Godavari and Krishna. 4.2 Major Issues raised in Memoranda and Meetings 4.2.01 The Committee heard several political parties, organizations and groups belonging to all the three regions about the issues relating to water and irrigation. During its field visits also, the Committee interacted with individuals/groups from different sections of the society in rural and urban areas. The Committee gathered information during these interactions, on the grievances, differing perspectives and aspirations of the people of the state. Besides the interactions, the Committee also visited some project sites. 4.2.02 One of the major grievances of the people of Telangana is regarding allocation and utilization of river waters. Various issues have been raised in the memoranda/representations and during oral submissions to the Committee, alleging discrimination against Telangana in the distribution of river waters, inadequate mechanisms to address inter regional disputes over river water sharing and water use and part diversion of river Godavari to coastal Andhra and river Krishna to Rayalaseema to the detriment of the Telangana region. It has also been alleged that injustice has been done to Telangana in the implementation of various projects. Another allegation is that unviable projects were formulated for Telangana like Ichampalli Devadula Lift Irrigation Scheme etc. which were unlikely to succeed. The Polavaram project has been planned to benefit coastal Andhra at the cost of Telangana and the projects inherited from the erstwhile Hyderabad state have been abandoned. 4.2.03 Issues have also been raised about neglect of tanks, pointing out that the area irrigated by tanks in Telangana has gone down from 12 lakh acres to 5 lakh acres compelling the farmers to depend on ground water for their survival. Telangana groups have argued that while canal irrigation is with public investment, ground water development is with the farmers. own resources which are impoverishing the farmers of Telangana, even leading to suicides in some cases. Some groups have pointed out that despite the largest catchment area amongst the three regions of Andhra Pradesh, Telangana has less irrigated land than coastal Andhra and that, if a separate Telangana is created the waters of Krishna and Godavari will be better utilized for agricultural production and creation of employment opportunities. 4.2.04 On the other hand, the delegations and groups from coastal Andhra and Rayalaseema regions have put forth enough evidence, both orally and through several presentations and memoranda, to suggest that the support for irrigation systems in Telangana region, keeping in mind that the region is on a higher plateau, has been substantial and that there should be no cause for complaint on this front. The result has been, as per these groups, that the growth of agriculture in Telangana region has been comparable, if not better and that if at all, it is Rayalaseema region which is lagging far behind. These organizations as well as the public at large from coastal Andhra and Rayalaseema regions also expressed strong apprehensions that such statements by Telangana leaders are misleading and that any consequent action based on presumptions will create serious water availability problems for them in future, if the state is bifurcated. 4.3 Appointment of Technical Expert 4.3.01 As water/irrigation has been a contentious subject in the state and considering that the issues raised were highly technical in nature, the Committee decided to appoint a knowledgeable, senior and well-known expert from outside the state to carry out an exhaustive study on the issue. Accordingly, Shri A.D. Mohile, former Chairman, Central Water Commission, was appointed to examine these issues and to enquire whether there has been any neglect or discrimination of any particular region in the state, as well as to suggest remedial measures for improving the situation related to water/ irrigation in the state. 4.3.02 The technical expert scrutinized the voluminous data as available from the Central and state Government departments and other sources, and examined the issues raised by various delegations. He also held a number of meetings with different groups/organizations in Delhi and Hyderabad and undertook field visits in the state including visits to Sunkesala Barrage on Tungabhadra and Mahbubnagar side, Kurnool, Pothirepadu Head Regulator, Rajolibanda Canal, Ganapur and Nizampur, Singur Dam, Srisailam Left Bank Tunnel, Nagarjuna Sagar and Lower Manair Dam at Karimnagar. During these visits he interacted with different persons and discussed technical issues related to barrages/dams etc. 4.3.03 After detailed analysis of the available data regarding water and irrigation in the state as well as the overall assessment made during the visits, meetings and interactions, the technical expert submitted a comprehensive report covering various aspects of the situation of water and irrigation in Andhra Pradesh. The Committee found the report of the technical expert extremely useful in its inputs which have helped to create a better understanding of the water situation and irrigation problems in Andhra Pradesh. 4.4 General Findings 4.4.01 The general findings of the Committee on some of the major issues and aspects relating to development and management of water and irrigation resources in the three regions and the state as a whole are given below. These findings are based on the (i) examination of memoranda received by the Committee from various political parties/organizations, (ii) oral presentations made by representatives of the parties/groups, (iii) district and village level field visits by the Committee and inputs received from the local leaders and public etc., and (iv) the report of the expert. Besides, further information and clarifications wherever needed were obtained from the state Government and the Ministry of Water Resources, Government of India. 4 .4.02 Land Utilization (i) The region wise land utilization pattern for the year 2007-08 which gives the comparative position is given below: Table 4.1: Land under cultivation in Andhra Pradesh and the Three Regions in 2007-08 (area in lakh hectares) Region Geograp hical Area Cultural Waste Other Fallows Current Fallows Net Area Sown Net Irrigated Area (2007- 08) NIA as percen tage of NSA Gross Irrigated Area (2007- 08) Telangana 114.84 1.74 8.01 18.34 40.57 17.08 42.1 24.14 Rayalaseema 67.30 1.92 3.62 5.45 27.65 5.66 20.5 6.85 Coastal Andhra 92.91 2.93 3.37 3.40 39.34 21.80 55.4 29.72 Andhra Pradesh 275.05 6.59 15.00 27.19 107.56 44.54 41.4 60.71 Source: Compendium of Area and Land Use Statistics of Andhra Pradesh – Directorate of Economics and Statistics, GoAP 4.4.03 Groundwater Irrigation (i) The region wise area under groundwater irrigation is given in Table 4.2 below. It would be seen that Telangana has the largest area underground water irrigation followed by coastal Andhra and Rayalaseema. Table 4.2: Region Wise Area under Groundwater Irrigation 2007-08 (in hectares) Region Telangana Rayalaseema coastal Andhra Andhra Pradesh Area 1314243 424303 548638 2287184 Source: Statistical Abstract, Directorate of Economics and Statistics. (ii) Any block, in which the estimated exploitation of groundwater exceeds the estimated availability, or where ground water levels are showing a falling trend, is considered “overexploited”. Any block, in which the estimated exploitation of ground waters is between 90 to 100% of the estimated availability, is classified as “critical”. Any block, in which the estimated exploitation of groundwater is between 70 to 90% of the estimated availability, is classified as “sub-critical”. The region-wise information about over-exploited, critical, sub-critical and safe blocks is given below: Table 4.3: Overexploited, Critical, Sub-critical and Safe Blocks (2007) Region Over exploited Critical Sub critical Safe blocks Total Watersheds Telangana 49 42 90 313 494 Rayalaseema 72 41 65 153 331 Coastal Andhra 11 6 20 367 404 Andhra Pradesh 132 89 175 833 1229 Source: State Ground Water Directorate along with CGWB. Information about the geographic area, net irrigated areas and number of wells is indicated below in Table 4.4:- Table 4.4: Well densities and area irrigated per well (2008-09) Region Number of wells Geographic Area, Lakh hectares Net Well Irrigated Area, Lakh hectares Wells per km2 Net Well/borewell Irrigated Area (hectares) per well Telangana 1567000 114.84 13.11 13.65 0.84 Seemandhra 1114000 160.21 10.13 6.95 0.91 Total State 2681000 275.05 23.24 9.75 0.87 Source: Andhra Pradesh Transco/Andhra Pradesh Genco and Statistical Abstract, Directorate of Economics and Statistics, GoAP This table shows that the density of wells/bore-wells is much higher in Telangana as compared to Seemandhra, but irrigation per well/bore-well is slightly less in Telangana as compared to Seemandhra. 4.4.04 River Lifts (i) Andhra Pradesh is planning river lifts in a very major way, particularly from river Godavari. Some details in this regard, as indicated by the state Government are as follows: Table 4.5: River lifts being planned Sl. No Name Design Pumping Head (m) Pumping Quantity TMC Days of Pumping Rated Power Demand MW Area Irrigated Lakh Acres Cost of Irrigation Rs/Acre 1 Kalwakurthy 298 30 90 388 3.75 3274 2 Bheema-I 67 11 98 40 1.1 1408 3 Bheema-II 61 10 78 76 1.0 1179 4 Nettmpad 112 14 80 76 2.1 1272 5 Kolisagar 116 4.5 125 12.3 0.66 1767 6 AMRP Single Stage 81 22 160 63.7 2.2 1819 7 AMRP Low Level 25 5 90 9.2 0.75 2184 Source: Government of Andhra Pradesh, Information compiled by ENC (IW), I&CAD Dept. (ii) From the Kalwakurthy high lift approximately, as per the data given, 30 TMC (849.5x106m3) of water is to be lifted in 90 days. The average flow over this period comes to 109.25m3/s. The lift involved is 298 m adding for friction losses assumed as 30m, the gross head will be 328 m. The theoretical power requirement will be 351.9 MW, and assuming a reasonable pump efficiency of 0.85, the actual average energy requirement will be 894195336.5 KWh. At an economic power cost of Rs 6 per KWh, the annual energy cost per year would be Rs. 536.5 crores per year. This annual pumping cost is over 3.75 lakh acres or 151763 hectares. Thus, the annual electricity cost would be Rs. 35352 per hectare. To this, an annual civil maintenance of Rs.1000/hectare, and an annual electro-mechanical maintenance of Rs. 4000/ hectare, needs to be added, giving the total annual operation and maintenance cost of Rs. 40,352 per hectare. Besides this, there is the capital construction cost of the civil and electromechanical works and equipment. This, at current prices would be at least Rs. 2 lakhs per hectare. At 10% per year interest, this cost would be Rs. 20,000 per hectares per year. Thus, the total annual charges, including the interest on capital, operation, and maintenance would be of the order of Rs. 60,000 per hectare per year. This annualized cost is likely to be higher than the additional benefits from irrigation. Thus, all such schemes require a much closer scrutiny. Even the purely technical viability, of water availability, and pumping possibilities, has not been proved through a detailed analysis. 4.4.05 Jalayagnam Programme (i) The Government of Andhra Pradesh has taken up a number of major, medium and minor irrigation projects under the programme “Jalayagnam” for utilizing the available water to the maximum. This programme was initiated with the aim of completing 86 major and medium irrigation projects (including flood banks and modernisation of delta systems) to create new irrigation potential of 39.54 lakh hectares. The programme is focused on bringing benefits of irrigation to backward tribal and drought prone areas of the state and for industrial and drinking water in adequate quantity as well as to promote conjunctive use of ground water with surface water. Jalayagnam projects also provide drinking water to a population of 2.11 crore population covering 6310 villages in 425 mandals utilizing 65.14 TMC of water. (ii) Between 2004-05 and 2009-10, 12 major and medium projects were completed and water released, while another 20 projects were completed creating partial irrigation potential. Thus new irrigation potential of 6.15 lakh hectares has been created besides stabilization of 1.32 lakh hectares during this period under major and medium projects. Similarly, irrigation potential of 2.30 lakh hectares has been created under minor irrigation (including APSIDC lift schemes) besides stabilization of 4.13 lakh hectares with an investment of Rs.2705 crores. Another 561 minor irrigation works at a cost of Rs.2445 crores are under execution to create further irrigation potential of 2.23 lakh hectares. (iii) In addition, restoration of flood banks has been taken up at a cost of Rs.2313 crores for a length of 670 km along Krishna, Godavari, Vamsadhara and Nagavali rivers to the required standards to protect habitations and ayacut from submersion. Modernization of Krishna, Godavari and Pennar Delta Systems, Nagarjuna Sagar Project, Tunga-Bhadra Project - HLC & LLC and Nizamsagar 0 20 40 60 80 100 120 140 160 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Area in Lakh Ha Years (1955-56 as year 1) Figure 4.2: Gross Cropped Area (Stacked) by regions and years Telangana Rayalaseema Coastal Andhra Projects are also being taken up at an approximate cost of Rs.15001.45 crores to modernize the existing ayacut system of 21.75 lakh hectares. 4.4.06 Gross Cropped Area The variations in Gross Cropped Area (GCA) for the three regions are given in Figure 2. It would be seen that the GCA does not indicate any marked increasing trend. Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, GoAP 0 10 20 30 40 50 60 70 80 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Lakh Ha. Year (1955-56 as year 1) Figure 4.3: Gross Irrigated Area (Stacked) Telangana Rayalaseema Coastal Andhra 4.4.07 Gross Irrigated Area Variations in Gross Irrigated Area (GIA) are given in Figure 3. The figure shows that there is a large increasing trend during this long period in both Telangana and coastal Andhra regions. However, the GIA in Rayalaseema does not exhibit any large increasing or decreasing trend. Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, GoAP 4.4.08 Net Irrigated Area The variations in Net Irrigated Area (NIA) for the three regions are given below in Figures 4.4, 4.5, 4.6. 0 2 4 6 8 10 12 14 16 18 20 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Lakh Ha Years (1955-56 as year 1) Figure 4.4: Net Irrigation Composition (Stacked) by Sources- Telangana Canals Tanks Wells Other Sources Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, GoAP The above figure indicates that net irrigation by canals has increased only slightly from about 1 lakh hectare to around 2.5 lakh hectares. Tank irrigation has reduced from 4 lakh hectares in 1955-56 to around 2 lakh hectares at present. However, well irrigation has shown a marked increase and today forms the bulk of the total irrigation (14 lakh hectares out of the total of 18 lakh hectares). In a nutshell, considering all sources together, the net irrigation in Telangana has increased from about 7 lakh hectares in 1955-56 to around 18 lakh hectares in 2008-09. 0 1 2 3 4 5 6 7 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Lakh Ha. Years (1955-56 as year 1) Figure 4.5: Net Irrigation Composition (Stacked) by Sources- Rayalaseema Canals Tanks Wells Other Sources Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, GoAP In Rayalaseema, the situation is somewhat similar to Telangana region. Canal irrigation has increased marginally from about 0.8 lakh hectares to about 1.3 lakh hectares. Tank irrigation shows a decrease from 1.7 lakh hectares to around less than 1 lakh hectares. Well irrigation has increased from about 1 lakh hectares to more than 4 lakh hectares. The net irrigation from all sources, in Rayalaseema, has increased from about 3.8 lakh hectares to about 6.3 lakh hectares in the last 54 years. 0 5 10 15 20 25 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Lakh Ha. Years (1955-56 as year 1) Figure 4.6: Composition of Net Irrigation (Stacked) by Sources- coastal Andhra Canals Tanks Wells Other Sources Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, GoAP (i) The growth of irrigation in coastal Andhra is quite different to the other two regions. In this region, canal irrigation has been the pre-dominant source right from 1955-56 up to the present time. Canal irrigation has increased from 11 lakh hectares to 13 lakh hectares. Tank irrigation has shown some reduction from 4 lakh hectares to around 2.5 lakh hectares, and there is also considerable increase in well irrigation from a negligible value in 1955-56 to around 5 lakh hectares. The total net irrigation in this region is around 23 lakh hectares. (ii) A comparison of the changes in net irrigated area, in the three regions, irrespective of the sources, is shown below: 0 10 20 30 40 50 60 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Area, Lakh Ha. Years ( 1955-56 as year 1) Figure 4.7: Net Irrigated Area by Years and Regions, as Stacked Lines Telangana Rayalaseema Coastal Andhra Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, Government of Andhra Pradesh (iii) The irrigation potential created through major and medium projects after the formation of the state increased by 713% in Telangana, 390% in Rayalaseema and 101% in Andhra region. 4.4.09 Multiple Irrigation (Cropping) (i) The incidence of area cropped more than once in the three regions may be seen below. It shows large year to year fluctuations. 0 10 20 30 40 50 60 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Percentage Years (1955-56 as year 1) Figure 4.8: Multiple Irrigation (Cropping) (GIA-NIA) as % of NIA Telangana Rayalaseema Coastal Andhra Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, Government of Andhra Pradesh (ii) Multiple irrigation has shown reduction in Rayalaseema from 30% in 1955-56 to about 22% at present. In Telangana it has shown an increase from around 18% in 1955-56 to about 50% in 1975. In 2008-09 it is approximately 40%. In coastal Andhra multiple irrigation was being practiced on only about 13% of the irrigated land but with increased surplus and ground water irrigation, this has now increased to about 40%. 4.4.10 Tank Irrigation (i) Regarding the decrease in the number of tanks, it is seen that tank irrigation is a part of the Surface Minor Irrigation, which includes, apart from the tanks, small diversions and small river lifts. The importance of the Surface Minor Sub-Sector in the total utilized irrigation potential is decreasing. This is clear from the following table, showing the all India data. Table 4.6: Comparison of Total & Surface Minor Irrigation Potential Utilised (all area figures in 000 hectare) Year Total Potential Utilised Minor Surface Potential Utilised % share of Surface Minor in Potential Used 1951 22606 6401 28.32 1956 25045 6430 25.67 1961 27783 6454 23.23 1966 32283 6480 20.07 1969 35833 6512 18.17 1974 42150 6962 16.52 1978 48525 7500 15.46 1985 54703 8511 15.56 1990 64467 9468 14.69 1992 68733 9789 14.24 2002 76356 9789 12.82 2007 83637 10955 13.10 Source: Central Water Commission, MOWR. and Planning Commission (ii) The changes in the area irrigated by tanks in Andhra Pradesh, is shown below: Table 4.7: Net Area under Minor Tanks (lakh hectare) Year Telangana Rayalaseema coastal Andhra Total 1955-56 4.48 1.62 4.58 10.68 1960-61 4.11 1.86 5.53 11.5 1965-66 4.95 1.43 5.5 11.88 1970-71 4.49 1.48 5.16 11.13 1975-76 4.35 1.54 5.13 11.02 1980-81 3.49 0.61 4.9 9.00 1985-86 2.91 0.77 4.19 7.87 1990-91 3.92 0.83 4.93 9.68 1995-96 2.51 0.65 4.33 7.49 2000-01 2.7 0.55 4.02 7.27 2005-06 2.53 0.81 3.27 6.61 Source: Central Water Commission, MOWR. and Planning Commission (iii) Thus, although the decline is sharper in Telangana, decline has also taken place in Rayalaseema, and to some extent, in coastal Andhra. The 2nd Minor Irrigation Census (1993-4) gives the following data about Andhra Pradesh. Table 4.8: Status of Tanks in Andhra Pradesh (1993-94) Total Storages 79953 Schemes temporarily not in use 24170 Abandoned due to salinity 448 Dried up 2384 Destroyed 982 Others 1203 Total not in use 29187 Total in use 50776 Source: Second Minor Irrigation Census, MoWR (iv) The 3rd Minor Irrigation Census of the Ministry of Water Resources (MoWR), conducted around 2001 notes that out of 5.56 lakh tanks in India, 4.71 lakh are in use. The remaining 0.85 lakh tanks are not in use due to one reason or the other. It further notes that although the minor tanks have enabled the use of a potential of 34.3 lakh hectares, a potential of 18.5 lakh hectares is lost due to underutilization, and another 9.8 lakh hectares is lost due to non-use of the tanks. The Census also mentions that in 2001, Andhra Pradesh had 43138 tanks and 7153 other storages in use. (v) Tanks are declining due to various causes, which include sedimentation, costly and ineffective removal of sediments, increase in urbanisation, reduction of inflows due to more intense agriculture in tank catchments and increasing land cost. Minor shallow tanks have larger water spread and, consequently, larger percentage of evaporation loss, as compared to deeper reservoirs. Thus, any suspicion of deliberate neglect of tanks in Telangana appears misplaced. Nevertheless, efforts should be made to revive the tanks in Telangana, wherever these can be effectively revived, either for direct local use or as percolation tanks. This would have a particular relevance to the Godavari basin part, which can afford extra evaporation. 0 2000 4000 6000 8000 10000 12000 14000 193 - 94 194 - 95 195 - 96 196 - 97 197 - 98 198 - 99 19 - 20 20 - 01 201 - 02 202 - 03 203 - 04 204 - 05 205 - 06 206 - 07 207 - 08 Rs. per year Figure 4.9: Income from Agriculture and Allied Activities, per Rural Person, at constant (1999-00) prices GDP, agr and allied, per rural person, Rayalseema GDP, agr and allied, per rural person, Telangana GDP, agr and allied, per rural person, Coastal Andhra 4.4.11 Income from Agriculture and allied activities (i) The incomes from agriculture and allied activities per rural person will be a crude indicator of rural incomes. This is shown below (Figure 4.9) Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, Government of Andhra Pradesh (ii) The Rayalaseema rural population is perhaps the poorest, but is catching up with Telangana. The coastal Andhra farmer even with stagnating irrigation and agriculture may still be significantly better off. 4.4.12 Rice Rice is the main food crop in Andhra Pradesh. It is seen that in coastal Andhra about 40-45% of the gross cropped area is made up of rice. In Telangana, it has increased from 20 to 30%. In Rayalaseema, less than 10% of the crop area is currently devoted to rice, although, the percentage was more in the earlier period, the focus having shifted to cash crops (Figure 4.10) 0 10 20 30 40 50 60 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Percentage Years (1955-56 as year 1) Figure 4.10: Percentage of Rice in GCA Telangana Rayalaseema Coastal Andhra Andhra Pradesh 0 10 20 30 40 50 60 70 80 90 100 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Percentage Year (1955-6 as year 1) Figure 4.11: Percentage of Foodgrains to Gross Cropped Area (GCA) Telangana Rayalaseema Coastal Andhra Andhra Pradesh Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, Government of Andhra Pradesh 4.4.13 Food grains (i) The percentage of food grains to gross cropped area may be seen below (Figure 4.11). Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, Government of Andhra Pradesh 0 50 100 150 200 250 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Production, Lakh tonnes Years (1955-56 as year 1) Figure 4.12: Foodgrain production, by regions (Stacked) and years Telangana Rayalaseema Coastal Andhra (ii) In coastal Andhra, food grains have contributed around 80% of the Gross Cropped Area (GCA). In Telangana, this proportion has reduced over time, from 80% to around 70%. In Rayalaseema region, the proportion has markedly reduced from around 70% in 1955-56 to around 40% currently. Source: Compendium of Area and Land Use Statistics of Andhra Pradesh –Directorate of Economics and Statistics, Government of Andhra Pradesh The food grain productivity has been increasing over the last 55 years but is much higher in coastal Andhra, as compared with Rayalaseema and Telangana. 4.4.14 Agriculture (i) While agriculture is still the primary occupation for farmers in Andhra Pradesh, its importance is reducing comparatively due to the development of other sectors. The importance of fisheries, animal husbandry, etc., which are allied to agriculture, has increased. The region wise contribution of agriculture, industry and services to Gross District Domestic Product (GDDP) is given below: Table 4.9: Regionwise Sectoral Contribution to Gross District Domestic Product at Constant (1999-2000) Prices in Andhra Pradesh (Percentage) Year Region Agri. & Allied Industry Services 1993-96 Telangana 27 30 43 Hyderabad 4 31 65 Rayalaseema 39 20 42 coastal Andhra 38 18 43 2005-08 Telangana 24 30 46 Hyderabad 1 18 82 Rayalaseema 27 26 46 coastal Andhra 29 23 47 Source: GoI, Ministry of Statistics and Program implementation. Note: Telangana excludes Hyderabad (ii) It would be seen that, in coastal Andhra, the contribution of agriculture/allied sectors to GDDP has reduced from 38% in 1993-96 to 29% in 2005-08. In Telangana, it has reduced from 27% to 24%, and in Rayalaseema, from 39% to 27% during the same period. 4.4.15 Population Growth in population, both in rural and urban areas, in all the three regions facilitates an understanding of the differences in the economy, agriculture and irrigation in these regions. Table 10: Rural and Urban Population Rural Population (in lakhs) Region 1961 1971 1981 1991 2001 Telangana 102.63 124.97 150.82 182.15 211.34 Rayalaseema 58.62 66.51 76.69 89.79 103.82 coastal Andhra 135.85 159.53 183.11 214.27 238.85 Total 297.09 351.00 410.62 486.21 554.01 Urban Population (in lakhs) Region 1961 1971 1981 1991 2001 Telangana 24.49 33.21 50.99 78.74 98.53 Rayalaseema 10.71 13.09 19.57 27.07 31.36 coastal Andhra 27.54 37.72 54.31 73.06 78.20 Total 62.75 84.03 124.87 178.87 208.09 Source: Compendium of Area and Land Use Statistics of Andhra Pradesh – Directorate of Economics and Statistics, GoAP As per 2001 statistics, coastal Andhra had the highest rural population with 238.85 lakh, followed by Telangana with 211.34 lakh, and Rayalaseema with 103.82 lakh. In the 1961-2001 period in Telangana, the urban population has grown from 24 lakhs to nearly 100 lakhs in the last 55 years, while the total Telangana population increased from 125 lakh to 311 lakh. The data shows a slowdown in the percentage of the population growth since 1991. In Telangana, considerable urbanization is seen, primarily due to the growth of Hyderabad city. In Rayalaseema, out of a population of 135 lakh in 2001, about 31 lakh people lived in urban areas. Thus, urbanization is seen to be somewhat slow. In coastal Andhra also, the percentage of population growth, has shown a decreasing trend since 1991. This trend is also seen markedly in the urban population, in spite of large urban centres like Visakhapatnam, Rajahmundhri, Vijayawada, Machhalipatnam etc. The population of the state, at present, is estimated to be above 8 crores and has grown in both urban and rural areas. 4.4.16 Comparison of north coastal Andhra with coastal Andhra There is a demand from some sections that the northern coastal region of Andhra Pradesh is different from the coastal Andhra Pradesh region and requires a special treatment where irrigation requirements are concerned. This region has the districts of Visakhapatnam, Vizianagaram and Srikakulam. It has numerous rivers of comparatively smaller length (as compared to Pennar, Krishna or Godavari), mostly originating in Orissa, and flowing into the Bay of Bengal. A comparison of this part with the total region of coastal Andhra is given below (Figure 4.13) 0 5 10 15 20 25 30 35 40 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Percentage Years (1955-56 as year 1) Figure 4.13: Comparison-% GIA to Geogrphic Areas- coastal Andhra and North coastal Andhra Costal Andha North Costal Andha Source: Compendium of Area and Land Use Statistics of Andhra Pradesh – Directorate of Economics and Statistics, GoAP This shows that, the GIA as a percentage of the geographic area is high and increasing in the coastal Andhra region. However, in its north coastal part, the percentage is lower and comparatively stagnant. Figure 4.14 below shows that in terms of total per capita GDP, the northern part of coastal Andhra is at par with the whole region, but in regard to the sector of agriculture and allied activities, its per capita income is less than half of that of the total coastal Andhra. 0 5000 10000 15000 20000 25000 30000 35000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 GDP, Constant Prices, Rs./Person Years, (1993-94 as year 1) Figure 4.14: Comparison-GDP per Capita- Coastal Andhra and North Coastal Andhra Percapita (Agri and allied) - Coastal Andhra Percapita (GDP) - Coastal Andhra Percapita (GDP) - North Coastal Andhra Percapita (Agri and allied) - North Coastal Andhra Source: Compendium of Area and Land Use Statistics of Andhra Pradesh – Directorate of Economics and Statistics, GoAP 4.4.17 The Pothereddypaddu regulator and the downstream canals on the right of the Srisailam reservoir have been built very fast. These will irrigate large areas in Rayalaseema and coastal Andhra. The Srisailam MDDL is increased to facilitate the diversion. On the left bank, another diversion with the 40 km. long tunnel which will irrigate Telangana areas is coming up slowly. This work needs to be accorded higher priority to ensure its early completion. 4.4.18 Telangana engineers and public representatives are placing very high importance on major surface and tank projects, with irrigation being equated with canals and tanks. Realising this situation, the large development of bore wells in Telangana region, with free power, has already been discussed earlier in the Chapter. The emphasis, thereafter, should be on recharging declining groundwaters in the blocks where the decline is observed. (Another problem, that has not been addressed sufficiently, is to provide piped domestic water to the areas affected by fluorosis e.g. in Nalgonda district). 4.4.19 The data about incumbency of Ministers in charge of major and medium irrigation, and data about Engineers in Chief, as available from the Government of Andhra Pradesh, was also seen. The Ministers for Major Irrigation were mostly from Telangana (55%). The Engineers-in-Chief were mostly from coastal Andhra (56%) but those from Telangana were also incumbent for a considerable period (43%). This does not indicate that those in charge of this sector were mostly from outside Telangana. 4.4.20 Polavaram Project Indira Sagar (Polavaram) project is located on river Godavari near Ramayyapet village of Polavaram Mandal of West Godavari district in coastal Andhra. The project is a multipurpose major terminal reservoir project on river Godavari for development of irrigation, hydropower and drinking water facilities to East Godavari, Visakhapatnam, West Godavari and Krishna districts of coastal Andhra. The project will provide irrigation to 2.91 lakh hectares and hydropower, with installed capacity of 960 MW, apart from 23.44 TMC drinking and industrial water supply to Visakhapatnam township and steel plant and diversion of 80 TMC waters to river Krishna. The ultimate irrigation potential of the project is 4.36 lakh hectares and annual power generation will be 2369.43 million units. In addition, 540 villages will also be provided with drinking water facilities in the command area. The project implements Godavari-Krishna link under interlinking of rivers project. The project envisages transfer of 80 TMC of surplus Godavari water to river Krishna which will be shared between AP, Karnataka and Maharashtra in proportion of 45 TMC by AP and 35 TMC by Karnataka and Maharashtra, as per the decision of the GWDT award. However, it is to be noted that, the project will affect about 277 habitations, of which, 119 habitations will be fully submerged and 158 habitations will be partially submerged. Of these, 47 habitations in Telangana would be fully submerged and 158 habitations would be partially submerged. Thus, the affected habitations in Telangana would be 205. It is estimated that, the number of families affected will be 44,574 and the number of persons affected will be over 1,75,000. It is important that full measures are taken by the Government towards their resettlement, rehabilitation and livelihood. This is one of the main concerns for which the project is being opposed in Telangana region, besides, of course, their general grievance that Godavari waters will be utilized for irrigating and further benefiting coastal Andhra. 4.4.21 The “Dr. Ambedkar Pranahitha Chevella Sujala Sravathi” is a major high lift scheme being undertaken by the Andhra Pradesh Government as a part of the Jalayagnam Programme. This project is based on using the water of Pranahitha, a tributary of Godavari River, and involves a series of lifts. The benefit starts when water is lifted to a minimum of 150 metres. For achieving full benefits, the maximum lift involved is 660 metres. The project is planned to irrigate 12.2 lakh acres and the total water diversion capacity is 160 TMC. It involves 7 canal systems and 20 lifting points and is supposed to act as water source for 1096 tanks. In addition, it will supply municipal and industrial water to the Hyderabad urban complex. The estimated total cost of the project, as approved by the Andhra Pradesh Government, is 17,875 crores as of now. When completed, it will give benefit to Adilabad, Karimnagar, Nizamabad Medak, Nalgonda and Ranga Reddy districts in Telangana region. The expert has expressed the opinion, with which the Committee agrees, that it is hoped that the project related aspects, such as ensuring both the technical and technoeconomic viability of this high lift scheme, planning and identifying the sources for the large power requirements, signing an agreement with Maharashtra to enable the construction of the headworks and possible escalation in cost in the future, would be suitably addressed by the state Government. 4.5 Summing up The major grievances of the three regions, pertaining to the management of water and irrigation resources, are covered in the following sub-paras:- 4.5.01 Grievances of Telangana (i) One of the grievances of Telangana region is that, although Telangana contributes most to the catchment area of Krishna and Godavari within the state, the allocations to the region are lower and not in the same proportion. Besides, they are not realizing even these lower allocations. In regard to the low allocations, as compared to the catchment area contributions, it is observed that by general convention, the allocations are based on the consideration of various factors like the contribution to the basin waters (where the catchment area will come into play), dependent population, developed usages, alternate sources, possibilities of use, etc. Catchment area cannot be the only criterion. Also, the allocations had already been determined for the state as a whole by the KWDT and the GWDT awards. Further division of these allocations is done project-wise and region-wise in the state through a technical committee. In addition, Telangana, being at a higher level, has natural disadvantage in gravity canal irrigation from large projects. (ii) Telangana people have recalled that their apprehensions had been placed before the SRC, that, if Hyderabad state was trifurcated, Telangana would get less water. It may be stated that the reorganization which took place in 1956 is now part of history and it will be impossible to reopen such debates. Those advocating a separate Telangana had also mentioned that, the KWDT recorded that Andhra Pradesh did not argue on all provisions of the Act constituting Andhra Pradesh, while arguing its case before the Tribunal. This perhaps led to loss of opportunities for Andhra and more particularly for Telangana. At that time, it is possible that, the project planning, as conceived by the then state of Hyderabad, got changed, as the erstwhile state of Hyderabad had some agreements with Madras state also, about some major projects benefiting both. But such agreements, which do not involve all basin states, suffer from legal infirmities. Unless expressly provided, the KWDT and GWDT awards supersede such agreements. As regards the arguments before KWDT, it can be surmised that, it is not certain, if Andhra had argued its case using all sections of the Andhra Formation Act, the KWDT would have allocated more water to Andhra Pradesh and hence to Telangana. (iii) Another grievance of Telangana is that the construction of Srisailam Left Bank Canal Project has been purposely delayed by the Andhra Pradesh Government. This project involves a single tunnel of 40 kms length by boring from only two faces, without adits. This project is difficult engineering wise and would take considerable time. (iv) Telangana groups also have a view that, their traditional irrigation, based on numerous small tanks, has been purposely destroyed through neglect, non-allocation of funds, etc., causing major harm. As a result, perforce, the farmers have to depend on groundwater irrigation and this is impoverishing the farmers. The reduction in the importance of minor surface irrigation and a phenomenal increase in groundwater irrigation is a nationwide phenomenon. There are various reasons for this phenomena, such as, increasing population pressure, increased cropping, increasing land prices and wide spread availability of energy in the form of electricity and fossil fuels in the rural areas and nonmaintenance of tanks. The earlier discussions in the Chapter indicate that there is a very large growth in the gross and net irrigation in Telangana, although, the minor surface irrigation has reduced. This is mainly due to the large increase in groundwater irrigation. Such a large increase would not have taken place if it was leading to the general impoverishing of all farmers. While, in general, this grievance is based on misconception, it is recognised that tube wells do involve costly investments and in pockets of low groundwater availability, operating costs are also high. As an immediate measure, soft loans for investments and subsidies for power, as already available, could be improved. Also in pockets, groundwater recharge schemes could be taken up. Similarly, wherever the old tanks can be revived or new check dams or percolation tanks can be built, these schemes should be initiated. (v) Regarding the Polavaram project on Godavari, the advocates for Telangana feel that, it is possible to have three barrages on Godavari, with little submergence, which would give similar benefits but inundate fewer Telangana habitations. In their view, this alternative is being ignored and the project is being constructed. The Polavaram project has been planned long back and is a part of the GWDT award. The project envisages transfer of 80 TMC of Godavari water to Krishna, and this transferred water is to be shared between the states of Maharashtra, Karnataka and Andhra Pradesh. A part of the share of Andhra Pradesh could come to Telangana also. Thus Telangana, while losing some land, would also benefit from the project. A demand for stopping the project at this stage appears misconceived. (vi) Similarly, there is a grievance that the Inchampalli Project, which can benefit Telangana, is not being followed up. The Inchampalli high dam causes a huge submergence of forest land and displacement of tribal population. Hence, it is very unlikely to receive environment and forest clearance. This grievance, therefore, appears to be misconceived. 4.5.02 (i) On the other hand, some of the grievances, as per the technical expert, appear to be genuine. With regard to Krishna, the Srisailam Project was originally conceived as a Hydro Power Project with a low Minimum Draw Down Level (MDDL). Later on, the Andhra Pradesh Government has increased the MDDL by a very significant height, in order to allow easier use of Srisailam water, by diversion on the right side through Telugu Ganga and Srisailam Right Bank Canal (SRBC). In Telugu Ganga and SRBC, apart from 15 TMC for the Chennai city and legal allocation of 19 TMC for SRBC, provision was kept for much additional irrigation use through the “Liberty” clause in the KWDT award. Recently, a very large Pothereddypaddu Regulator, upstream of Srisailam, has been built quickly by providing sufficient funds and without examining all the legal rights and proven techno-economic viability. Perhaps the new KWDT would already be seized of this problem. Another grievance of Telangana is that, the planning of the Nagararjunsagar Left Bank Canal (NLBC) was changed to the disadvantage of the region by dropping the canal in a lake, and thereby, losing the command area. Although Andhra Pradesh Government has provided some lift irrigation from this canal, the grievance appears to be understandable. (ii) Other grievances, about projects like Jurala, NLBC, etc., which were not complicated or difficult engineering-wise, were much delayed in execution. Also, that the shares of Karnataka for Jurala and Maharashtra for Lendi were not paid in time, thereby delaying the project, also appears to be genuine. Another grievance is that, through the Rajolibunda Diversion Scheme on Tungabhadra, Telangana receives much less water than what was allocated by the KWDT specifically. This has perhaps not been taken up effectively by the Karnataka or the Tungabhadra Board. 4.5.03 (i) As for Godavari basin, Telangana has a grievance that Sriramsagar project (SRSP) complex, consisting of SRSP Phase-I, SRSP Phase-II and the flood flow canal, is not delivering water downstream. The water does not even reach the end of SRSP Phase-I, and the lower Manair dam, which is part of Phase-II, does not get filled up. The main Kakatiya canal capacity has been reduced and the Sriramsagar has also got sedimented. The flood flow canal is not yet completed. The technical expert is also of the opinion that, the planning of the SRSP could have been better to ensure optimal benefits. Further, some pump schemes have also been sanctioned on SRSP which will lead to deterioration in the situation. The grievance appears to be genuine. However, there may be no easy solutions, except for, somehow changing the cropping pattern towards less water consuming crops to give a partial relief. Also, the Kakatiya canal capacity needs to be restored immediately. (ii) Another grievance of Telangana region is in regard to the Singur- Ghanpur-Nizamsagar system. The old Nizamsagar reservoir has been heavily sedimented. Singur was contemplated mainly to give relief to this system and only 4 TMC of water was to be transferred for domestic and industrial use in the Hyderabad urban conglomerate. Instead, presently the entire water of Singur is being transferred to Hyderabad, which is in the Krishna Basin. Since the consumptive use component in the domestic and industrial supply is small, most returns would enrich Krishna, while irrigators of Ghanpur and Nizamsagar will suffer. This appears to be a genuine grievance. (iii) Plans for replacing Singur waters by larger transfers of Krishna waters to Hyderabad need to be implemented fast, to give relief to the Telangana farmers. (iv) The Andhra Pradesh Government has planned a series of high lift schemes from Godavari to irrigate the Telangana Plateau. While some Telangana supporters feel that this is a good measure, many recognize that such lifts are not practicable from the operational point. Both the technical (Hydrological) and techno-economic viability of such schemes appears doubtful and a careful review is necessary. As an alternative, Telangana supporters are suggesting a series of low barrages from downstream of Pranhita confluence, to give some gravity and some low lift local irrigation. This needs to be studied seriously for partial and local relief to lower areas. 4.5.04 Apprehensions of Rayalaseema 4.5.04.1 Representatives from Rayalaseema pointed out that the Krishna Pennar project, formulated in 1951, envisaged the use of about 500 TMC in Rayalaseema. The Telugu Ganga enroute irrigation started much later and the RBC diversions are part of this 1951 plan. Also, from Srisailam, 112 TMC of water is to be drawn within 30 days and this requires a capacity of 44000 cusecs in the Pothereddypaddu regulator. They stated that the strong views about the capacity being oversized, is not correct. The 1951 plan for transferring 500 TMC to Rayalaseema does not fit with the KWDT award, which granted only 800 TMC (plus a small regeneration) to Andhra Pradesh from Krishna. Apart from some transfer through the Kurnool-Cuddapa canal, only 19 TMC of legal share is available from SRBC for Andhra. The remaining use is based on the Liberty Clause for seemingly imprudent investments without bringing out the technoeconomic viability. Also, the current excesses available under the Liberty Clause would diminish as the upstream uses develop. No material justifying the 30 days period was produced. Thus, the apprehension is based on a misconception. 4.5.04.2 However, the other concern expressed, about the bad maintenance of their canals, appears to be genuine. Poor maintenance reduces the capability of the canal systems. Proper maintenance of canals is, therefore, essential. However, since Rayalaseema has a large number of bore wells, while improving canal maintenance, canal lining measures need not normally be taken up because such measures will reduce the recharge of groundwater and worsen the groundwater situation as well as reduce the sustainability of the wells. There are other methods of maintenance of canals such as clearing, de-weeding, structure upkeep, etc., which can keep the flows going. Thus, a balanced approach is required in this regard. 4.5.05 Apprehensions of coastal Andhra 4.5.05.1 The coastal Andhra people have pointed out that out of the 181 TMC of water allocated by KWDT to Krishna delta, 20 TMC is being diverted to Bhima project in Telangana. Similarly, allocations for Jurala (in Telangana) were made by curtailing allocations to Nellore. Jurala was conceived only after reorganization. Firstly, although KWDT does mention that 181 TMC may suffice for the Krishna Delta, in the KWDT, final legally binding orders and allocations are made as a block to the state. The Government of Andhra Pradesh, therefore, is empowered to change the inter-regional allocations. Also, currently the delta is receiving much more water than 181 TMC. It is true that Jurala was conceived after reorganization. Before reorganization, the Jurala area was covered under the Upper Krishna project as conceived by Hyderabad State. After considering the loss of irrigation to this area due to reorganization, the KWDT specially compensated Andhra Pradesh by additional allocations to meet the needs of this area, although they did not make it legally binding in the final orders. Thus, this apprehension appears misconceived. Coastal Andhra, alongwith Rayalaseema, point out that SRBC was sanctioned in 1981 by allocation of 11 TMC of regeneration and 8 TMC of savings from K.C. canal, but the work is still not complete. This is because Andhra Pradesh combined the legal allocation of SRBC and 15 TMC, legally ceded by all states for Chennai, with additional en-route irrigation on Telugu-Ganga and another large irrigation through SRBC by evoking the Liberty Clause. Therefore, this apprehension of delay is misconceived. 4.5.05.2 Another apprehension of coastal Andhra is that the SRSP complex, including the flood flow canal, will use up all the waters up to that point, ignoring the downstream needs. However, the downstream needs of coastal Andhra would be met from flows of Wainganga/Pranahita, Sabri, Indirawati etc. Thus, this apprehension may not be correct. 4.5.05.3 On the other hand, the apprehension of coastal Andhra that the high lifts on Godavari, as planned, will dry up Godavari, does merit consideration. Although it is expected that the flood flows will still remain, the low flows would be reduced considerably. In fact, many Telangana persons are also not in favour of the high lifts due to their impracticability. This apprehension, therefore, is true and requires a detailed study. 4.5.05.4 Another apprehension of coastal Andhra is that the Godavari delta requires storage backing. The Krishna and Godavari deltas are the rice granary of India and need to be preserved in national interest. For further improvements, the storage backing is necessary. Unfortunately, storages like Inchampalli and Hydro-electric storages on Indirawati, as planned earlier in Chhattisgarh, are not coming up due to forest and related environment problems. Polavaram can provide some relief and needs to come up. Thus, the apprehension seems to be right, and Polavaram needs to be completed as per plans, while providing for proper rehabilitation, resettlement and livelihood to the affected families facing submergence. 4.5.05.5 Coastal Andhra representatives stated that their old systems, including the Nagarjunsagar project, are in bad state of maintenance. The efficacy of canal irrigation very much depends on proper maintenance. This has to be done in all systems. 4.5.05.6 For redressal of the existing water/irrigation grievances of the three regions, the view of the Committee is that wherever possible, appropriate and prompt measures may be initiated by the state Government to ensure equitable use of water and also equitable investment and development of water and irrigation resources. 4.5.05.7 The Committee has given considerable thought to the management of water and irrigation resources in the state and is of the view that, besides the observations made in the foregoing sub-paras, it is equally important that the problem is addressed through important structural reforms. Two such reforms are highlighted in the succeeding sub-paras. 4.5.06 Water Management Board (i) Going by the past experience, it may be advisable to constitute an independent and statutorily empowered, technical Water Management Board to look after both Krishna and Godavari basins as also the other basins in the state. The functions of the Water Management Board would be to ensure that the intrastate distribution of water amongst the regions, project conceptualization and the corresponding budget allocation is equitable. The other major function would be to ensure that adequate flows are available for aquatic ecology. The Board would also address all the technical and management issues of water availability, allocation and releases, besides the clearances and monitoring of irrigation projects. Going by the history of the inter-regional water related discord in the state, one of the foremost functions of this Board would be to prepare a Master Plan for the whole state, incorporating the regional Master Plans for optimum utilization of water and irrigation resources. The recommendations of the Water Management Board will normally be binding, unless there are cogent reasons for the state Government not to accept such recommendations. In that case, a detailed reference must be made back to the Board for reconsideration. The Annual Report of the Board will be placed before the State Assembly as per established conventions. (ii) The Board may consist of a Chairman appointed by the Central Government on deputation basis, who should be a senior water management expert of the rank of Additional Secretary to the Government of India (i.e. No.2 or equivalent level in the Central Water Commission) not belonging to the state, two Technical Members – one to look after Krishna Basin and basins south of Krishna and the other to look after Godavari Basin and basins north of Godavari, Member (Administration), Member (Finance) and Member (Environment). The five posts of Members will be filled on rotational basis with two Members each from coastal Andhra and Telangana and one from Rayalaseema. Various Statutory Boards, such as Bhakra Beas Management Board, Tungabhadra Board, Narmada Control Authority (constituted by Narmada Water Dispute Tribunal), Damodar Valley Corporation, Brahmaputra Board, Betwa River Board etc., have been constituted in India for similar purposes. In other countries also, such Boards/Authorities like the Tennessee Valley Authority in USA, for complete management including planning, construction and operation of water and power works and Murray – Darling Authority in Australia, for inter-state water management, have been constituted. (iii) In case a separate state of Telangana is established, this Board can be part of the reorganization process itself like the Bhakhra Beas Management Board and Tungabhadra Board. 4.5.07 Irrigation/Water Resources Development Corporation Another major structural change that the Committee suggests is to have a strong Irrigation/Water Resources Development Corporation for the state of Andhra Pradesh. In this respect, the Committee has carefully studied the Memorandum and Articles of Association of the existing Andhra Pradesh State Irrigation Development Corporation Limited, which has been constituted under the Companies Act 1956. Keeping this as the basis, the Committee suggests the following changes. (i) Functions of the Corporation: The functions already include development of irrigation potential and integrated works for the development of irrigation potential for industrial purposes and for purpose of public health. However, to avoid any misinterpretation, it would be better to specifically mention other functions such as groundwater, raw water supply for domestic use, rain water harvesting, watershed management, percolation tanks, renewal of tanks, including promotion of these through local bodies, panchayat, NGOs etc. Also, specific mention may be made about maintaining surface water and groundwater quality and recommending/executing measures for improvement thereof, in conjunction with the State Water Pollution Board. The Corporation would execute all projects and should virtually become the Line Department in regard to irrigation and raw water supply for domestic and industrial use. (ii) Structure of the Board of Directors: The Board of Directors should preferably consist of one Chairman and Managing Director, 2 or 3 Directors – (projects) representing the two or three regions, one Director- Finance, one Director – Administration, one Director - Groundwater, one Director for Water Quality and Water Pollution and a few individual full time/part-time Directors having specialized knowledge on irrigation/water resources related matters, including groundwater and water quality and a few representatives of water users and other expert organizations. Although the committee prefers recommending a single full time Chairman and Managing Director, if necessary, the Chief Secretary could be Ex-Officio Chairman and there could be a separate full time Managing Director. The Secretaries in-Charge of Irrigation, Finance, Power and Services could be Ex-Officio Directors. The Project Directors could be from the irrigation department. The appointment of Directors should be on rotational basis and they must represent all the three regions on the same lines as indicated in the structure of Water Management Board. (iii) The appointments of the CMD/Managing Director and Directors need to be recommended by a Committee headed by the Chief Secretary, in which the Chairman of the Water Management Board (who would be an officer of the Central Water Commission) and a couple of concerned Secretaries would be Members. However, the State can also create another independent committee for this purpose. Similarly, if required, separate Corporations for region-wise irrigation/water development can be created. (iv) Funding and ensuring Equitability in the funding of Projects: The main source of funding would be the Plan Expenditure as approved by the Planning Commission, state funds as allocated by the State, funds raised through issue of bonds, funds borrowed by the Corporation as already provided under item (B) (vi) of the existing Memorandum and Articles of Association and Revenues obtained through the supply of water. If bonds are to be floated for getting more funds, they would have to be necessarily guaranteed by the state Government. While allocating the Plan funds and guaranteeing such bond funding, the state Government needs to ensure that the funds are used equitably to ensure balanced development between/amongst the regions. (v) The budget for the Corporation would be prepared by the Corporation, keeping the interests of all the three regions in view, and submitted to the Technical Management Board. Normally, the project-wise and region-wise budget, as approved by the Technical Management Board within the total allocation available to the sector, should be accepted by the Government. However, if for some cogent reasons, the Government cannot accept the recommendations of the Technical Management Board, it may refer the matter back to that Board with reasons, for re-consideration. The budget should clearly indicate the region-wise funding. The Corporation should not normally re-allocate or divert the funds from one region to another. However, if this becomes absolutely essential, it should approach the Government through the Technical Management Board and the re-adjustment may be done after considering the advice of Technical Management Board. (vi) Alternative institutional mechanisms for equity in funding: The Committee has recommended the process of achieving equitable funding in regard to water related expenditure through the structure of the Irrigation/Water Resources Development Corporation and Technical Management Board. However, if necessary, the State can consider other alternatives also. For example, in Maharashtra, using the power vested in the President under Article 371(2) of the Constitution, the Governor ensures equitable funding in regard to irrigation, district-wise, so as to remove the backlog in a limited time-frame. The Committee has studied this procedure. Although it has its shortcomings, by and large it is effective. Similar or any other procedure, that can ensure equitable apportionment of funds to the regions in regard to water related development which the legislature, by convention, accepts and allots the budget with regionwise break-up to the Corporation, can also be considered. 4.5.08 It is hoped that with the above reforms, the discord caused by issues pertaining to development and allocation of water and irrigation resources would be minimized, if not totally eliminated, in either situation. PART II: POWER DEVELOPMENT IN ANDHRA PRADESH 4.6 Introduction Andhra Pradesh comprising coastal Andhra, Rayalaseema and Telangana regions is basically agrarian in character. It is the largest state in the southern peninsular region, with an area of 275,100 square kilometers (Sq. kms) and a coast line of 974 kms. Godavari, Krishna, Pennar and Vamsadhara are the major rivers flowing through the state. The state has 23 districts, with 9 districts in coastal Andhra area, 4 districts in Rayalaseema region and 10 districts in Telangana area. The population of A.P. as per the 2001 census stands at 76.2 million. This constitutes about 7.4% of the total population of the country. This makes AP the most populous of the 4 southern states. 4.7 Resources 4.7.01 Agriculture: Andhra Pradesh is endowed with many natural resources like fertile soil, perennial rivers, rich mineral deposits, and a climate congenial for agriculture. The state is a leading producer of paddy and other crops like tobacco, cotton, sugarcane, pulses, fruits and vegetables etc. Mangoes, grapes, pineapple, banana and guava are some of the major fruits produced in the state. Apart from these, the state also produces spices like chilies, turmeric, ginger, coriander, etc. 4.7.02 Forests: Andhra Pradesh has a total forest area of 61.99 lakh hectares which constitutes 22.4% of the total geographical area of the state. Around 45% of forest area falls in the Telangana region, while around 30% falls in the coastal region and 25% in Rayalaseema region. 4.7.03 Minerals: Andhra Pradesh has about 48 types of mineral deposits. It is the leading producer of barytes, mica, coal, bauxite, lime, granite, etc. The state produces about 50 million tons of industrial minerals. Deposits of some major minerals in A.P. are: 1. Coal 13,021 Million Tons 2. Limestone 30,400 Million Tons 3. Bauxite 700 Million Tons 4.8 Hyderabad State Electricity Department 4.8.01 Hyderabad State Electricity Department was established in the year 1910. The first unit of 10 KW diesel generating set was installed at Hussain Sagar in Hyderabad. The Andhra Pradesh State Electricity Board (APSEB) was formed at the end of 1956. During 1955-56, at the time of its formation, there was no thermal generation installed capacity. However, hydel generation was 44.0 MW. Similarly, the number of villages electrified at that time was 398 (coastal Andhra), 147 (Rayalaseema) and 11 (Telangana), respectively, in the three regions. 4.8.02 The erstwhile, APSEB was responsible for all the three functions of the power sector, namely, generation, transmission and distribution of power up to its unbundling in to corporatized entities in the year 1999. 4.8.03 The present generation installed capacity as on 30th June, 2010 in coastal Andhra, Rayalaseema and Telangana is 5242.46 MW, 1840.14 MW and 4368 MW respectively. AP has also achieved 100% village electrification 4.8.04 In 1997, Government of Andhra Pradesh (GoAP) formulated a policy for reforms in power sector and APSEB was unbundled into three separate entities namely, generation, transmission and distribution. Based on this, “AP Electricity Reforms Bill” was passed in 1998 and became effective from 1st February 1999. Subsequently, APgenco, APtransco, Discoms and AP Electricity Regulatory Commission (APERC) were created. 4.8.05 Besides generating power from its own power plants, APSEB procures power from central generating stations, other states, joint venture power stations and more recently from the private sector since 1995. APSEB witnessed stupendous growth during the last five decades. The installed capacity1 of APgenco is 8085.86 MW comprising of 4382.5 MW Thermal and 3703.36 MW Hydel, 3048.54 MW of share from central sector, 273 MW from joint sector and 3217.12 MW from private sector as on 31.03.2010. The length of T&D lines is of the order of 864,064 Km of which EHV lines (400KV, 220 KV & 132 KV) comprise of 30,969 Circuit Kilo meters (CKM). The total number of consumers2 is about 21.82 million of which 2.769 million are agricultural consumers as on 31.03.2010. APSEB.s power plants made a name for themselves for their enviable performance. The thermal stations are noted for their high plant load factors (PLFs) year after year. The present average PLF is 86.20% as on 31.03.2010. There are also a number of rural electric cooperatives functioning as supply licensees in the state. 1 Source: APtransco/APgenco 2 Source: APtransco/APgenco 3 Source: APtransco/APgenco 4 Source: Ministry of Power, Central Electricity Authority, Government of India 4.8.06 Despite the significant growth of the power system, the state is experiencing energy and peak shortages. Power cuts mainly to high tension (HT) industries have become necessary. Beside peak load restrictions, regulation of hours of supply to irrigation pump sets had to be imposed in the summer months. The unmetered flat rate tariff for supply of power to agricultural consumers is one of the main factors contributing to the difficulties of the power sector. Power cuts in industries have resulted in growing dependence of industrial consumers on captive generation. The captive generation capacity3 in HT industrial sector in the year 2009-10 was about 1606 MW, which generated 3915 GWH (Giga watt hours, this is also equal to Million Units). 4.8.07 Peak load & energy position of Andhra Pradesh4: During 2009-10, Andhra Pradesh could generate 10880 MW against a peak demand of 12010 MW. Thus there was a shortage of 1130 MW (- 9.41%). In 2009-10, Andhra Pradesh could meet an energy demand of 74,859 MUs against a peak demand of 79,201 MUs. Thus there was a shortage of 4,342 MUs (-5.48%). 4.8.08 Transmission & Distribution losses5: APtransco has been making substantial investments in upgrading and expanding its network. The distribution system has expanded vastly to cater to the inexorable load growth and to improve quality and reliability of supply. The number of substations increased substantially from 1996 in 1999-2000 to 4096 in 2009-10. The number of distribution transformers increased from 186847 to 737544 from 1999 to 2009-10. Despite an enormous and continuous growth over the years, the T & D system is still being strengthened to convey power to all consumers. The unmetered agricultural connections make it difficult to segregate the commercial and technical losses. 4.8.09 Investment Programme: The World Bank has agreed to support the State Government by financing a part of the investment programme in a series of loans under Adaptable Programme Lending (APL). The first loan is being used for strengthening of transmission and distribution system envisaging augmentation of power transformer capacities in the substations, reconfiguration of sub-transmission and distribution network, better consumer metering, communication system etc. 5 Source: APtransco/APgenco/AP Government 4.8.10 AP Govt. has directed APtransco to go in for Accelerated Power Development Reforms Plan and Reduction in Transmission and Distribution losses in a big way and implement the Restructured Accelerated Power Development Reforms Programme (R-APDRP) efficiently. Projects under this scheme will be taken up in two parts. First part includes the projects for establishment of baseline data and IT applications for energy accounting/auditing & IT-based consumer service centers. Second part is for regular distribution strengthening projects such as renovation, modernization and strengthening of 11 KV level substations, Transformers / Transformer centers, Re-Conductoring of lines at 11 KV level and below, Load Bifurcation, feeder separation, Load Balancing, HVDS (11kv), Aerial Bunched conductoring in dense areas, replacement of electromagnetic energy meters with tamper proof electronic meters etc. All towns and cities with population of more than 30,000 will be covered. In addition, in certain high-load density rural areas with significant loads, works of separation of agricultural feeders from domestic and industrial ones, and of high Voltage Distribution System (11KV) will also be taken up. The Power Finance Corporation (PFC) is giving loans under the first part of the R-APDRP. Towns having population of 4 lakhs and more are eligible under this scheme. Meanwhile the outlay of Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) is fixed at Rs.825.36 crores for Andhra Pradesh , for electrification of 14,309 un-electrified habitations and 37,39,566 rural households including 24,55,526 BPL rural households. 4.8.11 Sources of Power Generation in Andhra Pradesh: The major natural resources for power generation in the state include rivers, coal and natural gas. Rivers are important resources for irrigation and power. Andhra Pradesh has 17 small and big rivers flowing through different parts of the state. Of these, the two major rivers Krishna and Godavari provide the alluvial soils which are highly fertile when irrigated and have made Andhra Pradesh into one of India's leading agricultural states. Today, Andhra Pradesh leads the country in the production of rice (paddy). 4.8.12 Rivers Godavari and Krishna rise high in the Western Ghats and cut deep through Andhra Pradesh while moving rapidly towards the east on their way to the sea. They, as well as the Tungbhadra river, provide much needed water for irrigation. Man-made canals help in distributing this water throughout the state. There are several hydro-electric power projects running in the state which have been set up to tap the water resources of the Krishna and Godavari rivers. The energy resources fall into two main categories, renewable and nonrenewable energy resources. Non-renewable sources of energy can be divided into two types: fossil fuels and nuclear fuel. 4.9 Hydro-Dams and Thermal Projects 4.9.01 The state is richly endowed with abundant resources required for generation of power – coal, water, gas, wind, solar energy, etc. Coal reserves needed for thermal power generation are available in Telangana region. There are different types of coal. Some contain impurities such as sulphur that pollute the atmosphere when they burn. Coal is relatively cheap, with large deposits that are reasonably easy to obtain, some coal being close to the surface. It is relatively easy to transport coal because it is a solid. Water resources required for hydro power generation are available in Telangana region. The gas required for power generation is also available in the KG basin. Wind and solar energy required for power generation is available along the 1000 km stretch of coastal Andhra. 4.9.02 Telangana region is having coal fields at Singareni. In coastal Andhra, natural gas is produced from Krishna-Godavari basin. Therefore, a number of gas power stations have been installed and more are coming up. However, in Rayalaseema there is neither coal nor gas. Government of India has allocated coal from Singareni coal mines to Kothagudam Thermal Power Station (KTPS) in Rayalaseema and for Vijayawada thermal power station in coastal Andhra. As coal from Singareni collieries is not sufficient and is costly also, therefore, these stations are also getting coal from Talchar coal mines in Orissa or importing coal from outside India to meet their coal demand. AP Government has planned to set up a 2100 MW gas based power plant in Telangana in Karimnagar district. The big ports along the seacoast facilitate import of coal, gas, power generation and transmission equipment. The coordinated and balanced development of power sector in the three regions of Andhra Pradesh is possible only because of transfer of natural gas and oil from KG basin, coal from Singareni and Talchar mines and hydro power from Sreesailam and Nagarjuna projects. Table 4.11: Generation installed capacity (MW) As on 30-06-2010 Region Total Installed Capacity Thermal Generation installed Capacity Telangana 4368 1783 Rayalaseema 1840 840 coastal Andhra 5242 1760 State own capacity in MW 11450 - Inter state 148 - Central Generating Stations 3049 - Total capacity in MW 14648* 4383 Source : APtransco / APgenco * rounded 4.9.03 Thermal: The thermal capacity in Telangana region is almost equal to that of coastal Andhra. This is because of the fact that Telegana has coal mines, while coastal Andhra is also getting coal from Singareni, Talchar mines and from outside India through imports. 4.9.04 The present total installed generating capacity in Telangana region is less as compared to coastal Andhra. But this is not a matter of concern because the Telangana region is being supplied electricity to its full requirement through the AP transmission grid. 4.9.05 Power – Hydro Table 4.12: Region and District wise Hydro Power Stations installed capacity in A.P. (as on 30-06-2010) Name of the Project Capacity (MW) Location Telangana Srisailam Left Bank PH 900 Mahaboobnagar Jurala 117 Mahaboobnagar Nagarjunasagar Main PH 816 Nalgonda Nagarjunasagar Left Canal PH 60 Nalgonda Mini Hydel* 6 Nalgonda Singur 15 Medak Mini Hydel* 2 Karimnagar Lower Sileru 460 Khammam Mini Hydel 2 Khammam Nizam Sagar 10 Nizamabad Pochampadu 27 Nizamabad Mini Hydel 12 Nizamabad Telangana Total 2427 Rayalaseema Penna Ahobilam 20 Ananthapur Srisailam Right Bank PH 770 Kurnool Rayalaseema Total 790 Coastal Andhra Upper Sileru 240 Visakapatnam Donkarai 25 East Godavari Nagarjunasagar Right Canal PH 90 Guntur Coastal Andhra Total 355 State Total 3572 Source: APtransco / APgenco. Note: * indicates private projects. The hydel generation capacity is the highest (68%) in Telangana, among the three regions. This is because of the fact that the two major rivers of Andhra Pradesh are entering the Telangana region and are at a higher elevation than those of Rayalaseema and coastal Andhra. This gives a sufficient head of water to construct hydro stations in Telangana region. 4.10 Power – Gas The details of existing gas based power stations in AP are as under: Table 4.13: District wise Private Gas based generating installed capacity in coastal Andhra (As on 30.6.2010) Name of the Project Capacity (MW) Location Jegurupadu (GVK-Pvt.Sector) 217 East Godavari Jegurupadu (GVK- Extn I) 220 East Godavari Kakinada (Spectrum - Pvt. Sector) 208 East Godavari Reliance Energy Ltd. 220 East Godavari M/s. Vemagiri 370 East Godavari M/s. Konaseema Gas Power Ltd. 286 East Godavari M/s. Gautami 464 East Godavari Sri. Vatsa Power Projects Ltd. 17 East Godavari Vijjeswaram - Joint Venture of APSEB with Ms. AP Gas Power Corpn. Ltd. * 272 West Godavari Kondapalli Power Corporation Ltd. 352 Krishna M/s. RVK Energy Pvt. Ltd. 20 Krishna Coastal Andhra 2646 Rayalaseema - - Telangana - - Source: APtransco / APgenco. Note: * indicates Joint Venture. 4.10.01 There are no gas based power stations in Telangana and Rayalaseema regions. The availability of gas in the KG basin has encouraged the private sector to set up the gas based power stations in coastal Andhra region. Vemagiri CCPP and Jagurupadu CCPP (Combined Cycle Power Project) (GVK Extn) projects are ready for operation and waiting for natural gas. Further, Gautami CCPP and Konaseema CCPP Projects are under testing and commissioning and are nearing completion. However, enthusiasm for gas-fired generation is dampened by increasing concerns about gas supply security. Domestic gas production is insufficient to meet the growing gas demand in the economy. Total Indian gas production in FY 2003-04 was 33 bcm/y (Billion Cubic metres per year). The power sector is already starting to experience shortage of gas supply. According to Ministry of Power, 38 gas-based power stations with a total capacity of 9,536 MW had to operate at a plant load factor (PLF) of only 58% during FY 2004-05 due to shortage of gas supply. 4.10.02 The three major challenges for increasing the electricity generation through gas based plants are: i. Lack of sufficient gas transmission infrastructure ii. Lack of a coherent legal and regulatory framework for the sector iii. Continuous questions about affordability of gas Since gas demand is significantly higher than gas supply, Government allocates gas on recommendations of the Gas-Linkages Committee (GLC) The GLC determines the quantities of gas to power plants as part of the investment and planning process. 4.11 Power–Diesel and Non-conventional sources of energy There is only a very small diesel generating installed capacity in coastal Andhra, i.e., 37 MW. This is because of the fact that cost of diesel power stations is very high. There are also some non-conventional sources of energy with capacity of 159 MW in Telangana, 210 MW in Rayalseema and 444 MW in coastal Andhra. 4.12 XII Plan Capacity Addition Table 4.14: Plans of APGENCO to add new generating plants List of Generating stations planned during XII Plan Thermal Krishnapatnam (2x800 MW) 1600 2012-13 Nellore Andhra IGCC plant at Dr. Narla Tata Rao TPS(JV) 182 2013-14 Krishna Andhra Vodarevu UMPP 5X 800 2015-16 Prakasam Andhra Srikakulam TPS (JV) 4X600 Under Investigation Srikakulam Andhra Kakatiya Stage II 1X 600 2012-13 Warangal Telangana Kareemnagar Gas Project 1X600 2013-14 Kareemnagar Telangana Sattupalli TPS 1X600 Under Investigation Kareemnagar Telangana Rayalaseema TPS Stage IV 1X600 2013-14 Kadapa Rayalaseema Hydel Lower Jurala (5x40) 200 2013-14 Mahaboobnagar Telangana Nuclear Kadapa Nuclear Power Plant(JV) 2X1000 Under Investigation Kadapa Rayalaseema Gas Based M/s. GVK 800 2012-13 East Godavari Andhra M/s. Gauthami 800 2012-13 East Godavari Andhra M/s. Vemagiri/GMR 768 2012-13 East Godavari Andhra M/s. Konaseema 820 2012-13 East Godavari Andhra M/s. Lanco 366 2012-13 Krishna Andhra M/s. Spectrum 1350 2012-13 East Godavari Andhra M/s. Reliance Infra. 1200 2012-13 East Godavari Andhra M/s Encore Power (P)Ltd. 500 2013-14 Krishna Andhra M/s RVR Power Projects 20 * West Godavari Andhra Total 19406 - - - Source: APtransco / APgenco *24 months from allocation of gas 4.13 Transmission and Distribution 4.13.01 The generation voltage is normally in the range of 11 kV to 18 kV. This voltage is stepped up to 132 kV/220 kV/400 kV through generator transformers, installed at the generating stations. The stepped up voltage is then used to transmit power from the generating stations to transmission grid. The transmission grid consists of two types. State transmission grid and Central transmission grid. Generation from state/private sector plants of the state is connected to state transmission grid. The generation of central sector plants is connected to central transmission grid, which in turn is connected to state transmission grid. The planning of transmission lines and sub-stations is simultaneously taken up along with the power generation planning. As soon as State or Central Sector generation plants are approved, the state or electricity department submits their proposal to transmission wing for planning and commissioning of suitable transmission and distribution systems. It is ensured by both state and Central transmission utilities (Power Grid Corporation of India) that the transmission and distribution networks are in place before the synchronization of new plants to the transmission networks. 4.13.02 Power systems in AP are growing in size as well as complexity with growth in demand an addition of large sized power stations in the State and Private Sector. Transmission voltage levels have gone up to 400 kV and above, with large sized super Thermal Power Stations in operation. APtransco is distributing power to four distribution (Government) companies of Andhra Pradesh namely, AP CPDCL, AP EPDCL, AP SPDCL and AP NPDCL. APtransco is dispensing power at 132 kV level. DISCOMs are free to purchase power from any source to meet their requirements. 4.13.03 AP Grid on an average is able to meet the energy requirement of 213.53 MU per day. AP has a very strong transmission and distribution network for carrying power even to the remotest place in the state. Table 4.15: Transmission Lines and Distribution Transformers (DTRs) existing as on 31.03.2010 REGION Lines (Kms) DTRs 400KV 220KV 132KV 33KV 11KV LT Nos. Telangana 992 2378 4317 8420 55489 127322 316522 Rayalaseema 124 2604 3113 8815 65411 97952 208757 coastal Andhra 1247 4589 4487 12501 83051 154842 211489 Region Number of Substations (KV) Shunt capacitors (MVAR) 400 KV 220 KV 132 KV 33 KV Telangana 4 42 136 1784 300 Rayalaseema 2 21 53 772 90 coastal Andhra 3 33 88 1158 0 Source : APtransco / APgenco 4.13.04 The T&D system in all the three regions is equally strong APtransco carries out load flow studies on regular basis and based on this if any strengthening is required, it is planned and executed immediately. To overcome the low voltage problem at any place in the system, capacitor banks are planned and commissioned. The salient features of the transmission system are: . AP grid is connected to neighboring states through 400 KV sub-stations and transmission lines: . 400KV line from Chinakampalli to Chennai (Tamilnadu) and 400KV line from Chinakampalli to Kolar (Karnataka). . 400KV lines from Godty (PGCIL) to Hoody & Neelmangla (Karnataka) . 400KV lines from Godty (PGCIL) to Raichur (Maharashtra) . 400 KV back to back connection from Ramagundam to Chandrapur in Maharashtra (Western grid) . 400 KV back to back connection from Gazuwaka (PGCIL) to Yepore in Orissa (Eastern grid) 4.13.05 Energy Conservation: Steps are being taken by DISCOMs for conservation of energy. Agricultural consumers are being persuaded to adopt DSM measures. The licensees have launched distribution of CFL Lamps to 6.5 lakh of domestic consumers, on pilot basis, in Visakhapatnam circle under the Prime Minister.s Bachat Lamp Yojana (BLY) scheme. Capacitors have been installed on LV side of DTRs. Energy conservation benefits are achieved by reduction of peak load demand. 4.14 Agriculture Sector 4.14.01 Power Supply Hours to Agricultural Services: Presently, power is being provided to agricultural services in two phases, in 3 and 4 hour blocks. This is as per the government policy to provide 3-phase power supply to agriculture sector in two spells i.e., 4 hours during day time and 3 hours during night time. 4.14.02 Power Supply to Lift Irrigation (LI) Schemes: 7 hours, 3 phase electricity supply is extended where Lift Irrigation (LI) schemes are fed from common feeders and 16 hours supply is provided where LI schemes are fed from dedicated feeders. 4.14.03 24 hours Power Supply to Villages: Discoms hope to provide 24 hrs power supply to rural areas on par with urban areas. Free power, to all eligible agricultural consumers, is being provided since 14.05.2004 and GoAP is providing necessary subsidy. In the next 5 years an additional area of 40 lakh acres will be covered by surface irrigation which will entail increased power consumption of additional power subsidy. 4.15 Hyderabad 4.15.01 Special measures to meet the growing demand of Hyderabad city: The present peak demand of Greater Hyderabad is about 1500 MW and it is expected to reach 5000 MW by 2019-20. APtransco has undertaken Hyderabad city electricity improvement scheme with financial assistance from Japan, PFC and other Financial Institutions. An amount of Rs. 1265 crores is sanctioned for the scheme. 400 kV Substation at Malkaram at a cost of Rs. 72 crores has been commissioned in the month of June 2010 for the 400 kV Ring Main Transmission scheme and another 400 kV Substation at Yeddumylaram at a cost of Rs. 115 crores is expected to be ready by December 2011. . The above two sub-stations will relieve the existing 400 kV substation loads at Mamidipalli and Ghanapur through 220 kV and 132 kV substations to improve the system. . Latest technologies viz., Gas Insulated Switchgears (GIS) substations & XLPE (Cross Linked Polythene Power Cable) under ground cables are being adopted in the 220 kV and 132 kV systems due to Right of Way issues and to ensure reliability of supply. 4.15.02 For the modernization and strengthening of power supply to the Hyderabad metropolitan area, it is necessary to construct certain sub-stations and lines to maintain reliable and quality power and to meet the load demand for the upcoming IT Sector and SEZs and other residential and commercial loads in and around the twin cities. 4.16 Issues raised by various organizations 4.16.01 During the CCSAP hearings certain issues were raised alleging discrimination in location of projects in Andhra Pradesh, delay in implementation of projects in Telangana, use of coal from Singareni and other places for thermal power generation outside Telangana and also with regard to lesser employment of local people in power projects/utilities. 4.16.02 The issues being technical in nature, the Committee appointed Shri V.B. Gupta, ex- Chief Engineer, Central Electricity Authority, Ministry of Power, Government of India to examine all such issues concerning generation, transmission and distribution of power and any alleged discrimination thereof among the three regions of the state. The technical expert scrutinized the voluminous data obtained from Central and state Government Departments and those submitted by the various delegations to the Committee. He also undertook field visits to various projects and held discussions with the technical experts and others in Andhra Pradesh. 4.16.03 It is true that Telangana region is endowed with abundant resources of coal and water which are essential for setting up power generating projects. Locating power plants at pitheads or other location depends on an objective assessment of the cost/benefits. As per the existing policy, power projects (Thermal or Hydel) have to be cleared by the Central Electricity Authority (CEA), Ministry of Power, Government of India. CEA examines all state Government.s proposals from technical and financial angle and after discussions with the State Government representatives, decisions are taken based on objective, technical and financial parameters. 4.17 Power Sector Key Indicators 4.17.01 Number of Low Tension services consumers6 District-wise data from 1971-72 to 2008-09 in respect of number of low tension services (consumers) of Andhra Pradesh (Volume-I of Andhra Pradesh Statistics of Key Indicators) shows the number of households getting electricity over the years. In Telangana region the number of low tension services (consumers) increased from 4.19 lakhs in 1971-72 to 85.62 lakhs in 2008-09, while in Rayalaseema it increased from 2.91 lakhs to 35.76 and in case of coastal Andhra, number of low tension services (consumers) increased from 5.30 lakh to 85.31 lakhs. This shows that the growth of number of low tension consumers, since 1971-72 to 2008-09, in Telangana region is the highest as compared to coastal Andhra and Rayalaseema regions. 4.17.02 Power Consumption of low tension consumers in Million KWH (MUs) District-wise data from 1971-72 to 2008-09 in respect of power consumption of low tension services (Consumers) of Andhra Pradesh in Million KWH (MUs) is a very important source of information on usage of electricity by individuals. In Telangana region, power consumption by low tension consumers in Million KWH (MUs) has increased from 351 MUs in 1971-72 to 18342 MUs in 2008-09, while in Rayalaseema, it has increased from 250 MUs to 6132 MUs. In coastal Andhra it has increased from 443 MUs to 10418 MUs. This shows that consumption of electricity in Telangana region has increased tremendously over the years and is highest among the three regions. 6 Source : Volume-I of „Andhra Pradesh Statistics of Key Indicators 4.17.03 Category-wise sales of electricity in 2009-10 in Million Units ((MUs) Table 4.16: Category-wise sales of electricity in 2009-10 (MUs) Region Domestic Commercial Industrial Agriculture Others Total Telangana 6007 1797 10674 10144 2324 30949 Rayalseema 1557 382 3030 4349 359 9679 coastal Andhra 5445 1175 7442 3788 578 18430 The data above indicate the use of electricity by domestic, commercial, industrial, agricultural and other consumers. In Telangana region, power consumption of domestic, commercial, industrial, agricultural and other consumers in Million KWH (MUs) is the highest as compared to Rayalaseema and coastal Andhra region. This shows that Telangana region is making maximum use of electricity for all categories of consumers as compared to coastal Andhra and Rayalaseema regions. 4.17.04 Power consumption of high tension consumers in MUs Table 4.17: Power consumption of high tension in Million KWH Region 2001-02 2003-04 2004-05 2006-07 2007-08 2008-09 Telangana 3576.13 3576.13 3576.13 3576.13 3576.13 9251.50 Rayalseema 882.19 882.19 882.19 882.19 882.19 2445.34 Coastal Andhra 2120.59 3140.14 3623.99 4674.57 5416.62 5831.05 Source: Volume-I of „Andhra Pradesh Statistics of Key Indicators. In Telangana region, power consumption of industrial consumers in Million KWH (MUs) has increased during the year 2008-09 as compared with Rayalaseema and coastal Andhra regions, while the high tension consumption in other regions has been increasing gradually. This shows that during the year 2008-09, the sudden higher demand for HT connections has come in Telangana recently. If this pace continues, then Telangana region would make great progress in industrialization. 4.17.05 Total connected load of HT & LT consumers and Agriculture Power Consumption Table 4.18 Total Connected Load HT & LT (MW) Region 1971-72 1981-82 1991-92 2001-02 2007-08 2008-09 Telangana 770 2241 5074 9432 - 16739 Rayalaseema 474 895 2014 3564 - 5402 coastal Andhra 949 1801 4446 7491 - 16203 Agriculture Power Consumption LT in Million KWH Telangana 154 376 4088 7357 8406 9274 Rayalaseema 155 245 1617 2508 3242 3727 coastal Andhra 180 322 1267 2291 2821 3054 Source: Volume-I of „Andhra Pradesh Statistics of Key Indicators. In Telangana region the total connected Load of HT & LT (MW) has increased from 770 MW in 1971-72 to 16739 MW in 2008-09, while in Rayalaseema and coastal Andhra it has increased from 474 MW to 5402 MW and 949 MW to 16203 MW respectively. This shows that total connected load in MW for Telangana region was the highest as compared with coastal Andhra or Rayalaseema region from 1981-82 onward. It also means that the demand of electricity in Telangana region is higher as compared to other regions and the electricity department is meeting the demand. In Telangana region, power consumption by agricultural consumers in Million KWH (MUs) is the highest as compared to Rayalaseema and coastal Andhra region. This shows that Telangana region is making maximum use of electricity for agricultural consumers as compared to coastal Andhra and Rayalaseema regions. 4.17.06 From the above, it is noted that the agricultural power consumption in Andhra Pradesh is growing since 1971. However the growth is more after 1981 and up to 2008-09. The agricultural power consumption in Telangana is much more as compared to coastal Andhra and Rayalaseema. 4.17.07 Region-wise number of existing sub-stations in 2010 Table 4.19: Region-wise number of existing sub-stations in 2010 Region 400 KV 220 KV 132 KV 33 KV Telangana 4 42 136 1784 Rayalaseema 2 21 53 772 coastal Andhra 3 33 89 1158 Source: APtransco/APgenco The number of 400KV, 220KV, 132 KV and 33 KV sub-stations, as on 2009-10, is the highest in Telangana as compared with Rayalaseema and coastal Andhra. This means that the Telangana region has the best transmission and distribution system to make electricity available to consumers. 4.17.08 The number of existing distribution transformers required for distribution of electricity in the region (as on 2009-10) is highest in Telangana i.e., 296522 as compared with coastal Andhra (211489) and Rayalaseema (208757). Table 4.20: Per Capita Consumption of Electricity in AP (2009-10) Per Capita Consumption of Electricity in 2009-10 Expected Per Capita Consumption of Electricity in 2010-11 Region Total sales (MUs) in 2009-10 Population in millions Per capita consumption of electricity (KWH) DISCOMS Plan to Purchase in 2010-11 per capita consumption of electricity Telangana 30949 30.9 999 45249 MUs 1191 KWH Telangana+ 26327.1 23 1445 - - Rayalaseema 9679.1 13.5 716 38545 MUs 777 KWH coastal Andhra 18430.3 31.7 581 State 59058.4 76.2 775 - - * Source: APtransco / APgenco. Note1: +excluding Hyderabad .Note 2: Expected Consumption is as per the filings of ARR for FY 2010-11 of the AP Power Distribution Companies to AP Electricity Regulatory Commission. 4.17.09 As per Central Electricity Authority, Ministry of Power, Government of India, per capita consumption of electricity is estimated to reach 1000 units /Yr for the country, at the end of 11th Five Year plan. However, the per capita consumption of electricity during 2010-11 in Telangana worked out to be 1191 Units / Yr. If Telangana per capita power consumption excluding Hyderabad is compared with the other regions, then the position is different. It would be seen that the position of per capita consumption of electricity in Telangana is very good as seen from the actual figures of 999 units (KWH) with Hyderabad as part of Telangana and 1445.6 (KWH) when Hyderabad is excluded. Perhaps the consumption levels in Telangana region are higher on account of good percentage of it going into the use of bore wells for agriculture purposes. 4.17.10 Irrigation under Bore Wells and power consumption Table 4.21: Irrigation under Bore Wells (2009-10) Region No. of Bore wells Irrigated area in acres Electricity consumption (MUs) Seema-Andhra* 11,14,000 22,00,000 7,100 Telangana 15,67,000 31,00,000 10,100 Source: APtransco / APgenco * Seema-Andhra: coastal Andhra + Rayalaseema The number of bore wells in Telangana is higher as compared to Seema-Andhra. The energy consumption in bore wells in Telangana is 3000 MUs more as compared to Seema-Andhra. Table 4.22: Region-wise sales of Electricity (2009-10) for Industry (MUs) Region Total Industry % industry Telangana 30949.03 10674.8 34.49 Rayalaseema 9679.07 3030.66 31.31 Seema-Andhra 28109.33 10472.96 37.25 coastal Andhra 18430.26 7442.3 40.38 Total State 59058.36 21147.76 35.80 Source : APtransco / APgenco Table 4.23: Subsidy provided to agricultural sector inclusive of cross subsidy Cross subsidy in Rs. crores Region 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Telangana 1120.59 1141.84 1640.96 1624.18 1668.97 2028.35 Rayalaseema 409.53 417.29 746.93 731.13 706.32 893.94 coastal Andhra 494.25 503.63 725.99 718.05 649.42 865.2 Source : APtransco / APgenco Subsidised electricity consumption in Telangana region is the highest as compared to coastal Andhra and Rayalaseema region. 4.17.11 Employment in Power sector 4.17.11.01 Issues about lack of employment / opportunities in power sector were raised before CCSAP. The data in this respect was examined. The details of employees working in various Thermal and Hydel power stations of APgenco and at Head Quarters are as under: Table 4.24: Region wise/Station wise employee strength (as on 31.7.2010) Region Thermal Hydel HQ Total Telangana 3288 616 321 4224 Rayalaseema 1404 286 69 1759 Coastal Andhra 2972 969 242 4283 Other States 11 70 0 81 Source : APtransco /APgenco 4.17.11.02 The number of employees in APgenco generating stations / HQ in coastal Andhra and Telangana regions is almost equal, while the number of employees of Rayalaseema region is less. This is because the population as well as the number of districts is less in Rayalaseema region. Table 4.25: Details of Man power at RTPP (as on 17.08.10) Telangana Rayalaseema Coastal Andhra Others Total Strength Nos. % Nos. % Nos. % Prov. Staff (Enggrs., Accosts & P & G) 7 1.03 601 88.38 72 10.59 - 680 O&M Staff 3 0.40 694 94.29 28 3.80 11 736 Total 10 1295 11 1416 Source : APtransco / APgenco 4.17.11.03 As per AP Government policy for employment, the recruitment in the workmen cadre in power sector of Andhra Pradesh is done at Circle (District) level or at Power House as a unit with 90 % candidates mostly from the local area. Since 2008, even for the cadre of Assistant engineer or equivalent, it is done based on Government Order 610, considering the 6 zones in the state. As per this GO 80% of the posts in the zone are filled up by local candidates and the balance 20% is filled up by non- local candidates. Table 4.26: Details of man power in Distribution Companies in AP Details of sanctioned posts in DISCOMs (other than workmen) as on 31- 3-2010 EPDCL SPDCL CPDCL NPDCL Total Total Technical 1281 1782 2235 1192 6490 Total non-technical 342 472 574 340 1728 Grand Total 1623 2254 2809 1532 8218 Source: APtransco / APgenco Table 4.27: Region-wise Abstract of Manpower Planning in AP Transco Non-workmen Workmen Engineering Accounts P&G Engineering Accounts P&G O&M Others Total Sanctioned Posts in AP Transco Telangana 1555 81 63 161 333 490 1303 69 4055 Rayalaseema 480 10 5 86 121 65 738 0 1505 Coastal Andhra 890 17 10 137 181 144 1286 0 2665 Total 2925 108 78 384 635 699 3327 69 8225 Based on working place of the employee Telangana 1270 83 39 15 145 344 275 6 2177 Rayalaseema 465 11 2 9 48 25 126 0 686 Coastal Andhra 837 21 8 12 58 71 295 0 1302 Total 2572 115 49 36 251 440 696 6 4165 Based on native place of the employee (existing in Employee Database) Telangana 933 55 36 15 106 311 262 6 1724 Rayalaseema 528 18 3 9 53 30 133 0 774 Coastal Andhra 1111 42 10 12 92 99 301 0 1667 Total 2572 115 49 36 251 440 696 6 4165 Source: APtransco 4.17.11.04 The above data shows that the number of sanctioned posts, number of employees working and number of employees working in APtransco based on the native place of the employee is the highest in Telangana. Table 4.28: Number of Employees (region-wise) in APgenco and APtrasco and in Power Stations KTPS/RTPS Sl.No Item Telangana Rayalaseema coastal Andhra 1 Number of Employees in APgenco (Total) 4224 1759 4283 2 Number of Employees in APgenco (Thermal) 3288 1404 2972 3 Number of Employees in APtransco 1724 774 1667 4 % Employment of persons belonging to the region - Kothagudam Thermal Power Station (Telangana) 68% 5% 27% 5 % Employment of persons belonging to the region – Rayalaseema Thermal Power Station (Rayalaseema) 1% 91% 8% Source: APtransco 4.18 Findings Table 4.29: Infrastructure and Consumption Sl. No. Item Coastal Andhra Rayalaseema Telangana 1 Power consumption 18430 9679 30949 2 Low voltage consumption in Million Units(MUs) 10418 6132 18342 3 Agricultural consumption in Million Units (MUs) 3788 4349 10144 4 Industrial consumption in Million Units (MUs) 7442 3030 10675 5 High voltage consumption in Million Units (MUs) 5831 2445 9251 6 Per capita consumption of electricity 581 715 999 7 No. of bore wells 11.14 lakhs 15.67 lakhs 8 Irrigation by bore wells in lakhs acres 22.0 31.0 9 Consumption in bore wells in Million Units (MUs) 7100 10100 10 Subsidy in Rs. Crores 865 894 2028 11 No of Distribution Transformers 211489 208157 316522 12 Number of 400 KV Sub-stations 3 2 4 13 Number of 220 KV Sub-stations 33 21 42 14 Number of 132 KV Sub-stations 88 53 136 15 Number of 33 KV Sub-stations 1158 772 1784 16 Number of Shunt Capacitors installed for improvement of voltage profiles (MVAR) 0 90 300 17 Proposed 400 KV Sub-stations in 2010-12 0 0 3 18 Proposed 220 KV Sub-stations in 2010-12 0 4 13 19 Generation Installed capacity as on 30-6-2010 in MW 5242 (46%) 1840 (16%) 4368 (38%) 20 Agency.s generation addition program during 2011-14 Kakateeya:600 MW KTPS: 500 MW Sattupalli: 600 MW Singareni:1200 MW Jurala: 200 MW Total : 3100 MW Data in Sl. Nos. 1 to 16 above pertains to the year 2009-10 4.18.01 From the analysis of various power sector indicators, it is seen that power sector in Telangana region has progressed very well vis-a-vis the other two regions and that there has not been any discrimination in Telangana, Rayalaseema or coastal Andhra regions by the Andhra Pradesh Government or any organization involved in generation, transmission or distribution of electricity. 4.18.02 Unlike coastal Andhra, Telangana has rich coal reserves, while coastal Andhra area has 1000 km of coastal belt, which is rich in oil and gas. In this respect, Rayalaseema region is poorly endowed. Each area has to seek development taking into account the inherent natural resources and facilities. The thermal, hydel and gas based generation installed capacity in the three regions has developed on sound technical basis after thorough scrutiny of the proposals by a Central agency i.e. Central Electricity Authority, Ministry of Power, Government of India. The Krishna and Godavari river waters are being utilized for the three regions both for irrigation and hydro power generation. 4.18.03 APSEB/APgenco is responsible for development of power in the state and has been impartial in selecting the power projects sites. The sites have been selected after ensuring availability of sufficient water and fuels required for generation. 4.18.04 The consumption of electricity in Telangana region is the highest as compared to other regions, indicating the prosperous status of the region. This also indicates that electricity is available to the people of Telangana as per their requirements through a very strong network of transmission and distribution network. The people of Telangana are consuming more electricity and also getting more subsidies towards higher agricultural consumption as compared to other regions. 4.18.05 Out of total amount of Rs. 3787.49 crores of subsidy given during 2009-10 by the Government of AP for supply of free power to farmers, an amount of Rs 2028.35 crores (53%) is now spent in Telangana, Rs 893.94 crores (24%) in Rayalaseema and Rs 865.2 crores (23%) in coastal Andhra. 4.18.06 The AP transmission grid is a very strong grid with a generation installed capacity of 14648 MW as on June, 2010. The peak demand was around 12,010 MW during 2009-10 and the demand met was 10880 MW. The electricity is available to all the districts depending upon their requirement. 4.18.07 The government of Andhra Pradesh has taken several policy and implementation initiatives to accomplish the reform process. The required legislative frame work has been effectively put in place with the passing of the reform bill. With the demonstrated commitment of the state government, the implementation of the reform process is a reality which is restoring creditworthiness to the sector and will eventually lead to vast improvement in the efficiency and productivity of power sector benefiting the customers by way of improved quality and reliability of supply at reasonable tariffs. 4.18.08 Through a number of projects under construction and planned for future, the AP Govt. and APgenco / APtransco / Discoms are making the necessary efforts to bridge the gap between the demand and supply. 4.18.09 The unemployment issue was raised during the meetings and visits to various projects sites. It is well-known that thousands of jobs are created in power sector during construction and operation and maintenance of generating stations and in the transmission and distribution network. These jobs are available to all the citizens of all regions of Andhra Pradesh, subject to zonal rules. The construction labour is preferably employed from the local areas only. It is clear that unemployment is the main concern in Telangana / Rayalaseema and due consideration needs to be given to the sentiments and high emotions of the people of Telangana / Rayalaseema. If the existing administrative and legal mechanism and provisions are not adequate to ensure fairness in filling vacancies in Telangana and Rayalaseema regions, the same needs to be addressed by appropriate administrative measures. 4.19 Suggestions to improve the situation of power in Andhra Pradesh . Higher priority may be considered for setting up more thermal power plants in Telangana region because of proximity of Singareni coal mines and to reduce the perceived imbalance in thermal generation capacity. . The number of people employed in power projects, originally belonging to Telangana region is found to be comparable to coastal Andhra. However, in the discussions with the Telangana activists and Rayalaseema delegation representatives, the main issue raised by them was regarding less number of local people employed in power projects. There may be number of factors responsible for this disparity. There appears to be some imbalance in the employment at higher cadres, because earlier the zonal system was not applicable to power sector and was not adopted in recruitment. Since the zonal system is now adopted in power sector also since 2008, the situation will get corrected in a span of about 3 to 4 years. . There is only one training institute, for imparting training to all categories of employees working in power projects of Andhra Pradesh, located in Vijayawada Thermal Power Station, in coastal Andhra. Since APgenco is going in for large generation capacity addition programme of about 20,000 MW during XII plan and corresponding transmission and distribution networks, this is going to create jobs for 50,000 people each in generation and transmission/distribution. Steps may be taken to recruit people (in the first instance at worker levels) from the backward districts for training them in the institutes. For this, at least two more training institutes, one each in Telangana and Rayalaseema regions need to be established. Further, there should be a separate hydro power training institute in Telangana region (say at Sreesailam Power Station). Similarly, there should be at least two separate training institutes for transmission and CHAPTER 5 PUBLIC EMPLOYMENT ISSUES 5.1 Introduction 245 5.2 Constitutional, administrative and legal events relating to Mulki Rules and the issue of Residential Qualification in Public Employment 246 5.3 The States Reorganisation Commission (SRC) 250 5.4 The Gentlemen’s Agreement,1956 251 5.5 The Gentlemen’s Agreement and the Amendment to the Constitution 252 5.6 Article 371: Special Provision with respect to the states of Andhra Pradesh, Punjab and Bombay 252 5.7 The Public Employment (Requirement as to Residence) Act, 1957 and rules thereunder. 252 5.8 Article 16 and 35 of the Constitution and the Public Employment (Requirement as to Residence) Act, 1957 253 5.9 Article 16- Equality of opportunity in matters of public employment 253 5.10 Repeal of existing laws prescribing requirements as to residence 254 5.11 Power to make rules in respect of certain classes of public employment in certain areas. 254 5.12 Consultation with Department of Personnel & Training 255 5.13 The Eight-Point Programme of 1969 256 5.14 The Five-Point Formula of 1972 257 5.15 The “Telangana Movement” 258 5.16 The Judiciary and the Public Employment (Requirement as to Residence) Act, 1957 259 5.17 Revival of Mulki Rules 260 5.18 The Mulki Rules Act, 1972 263 5.19 The “Jai Andhra” Movement of 1972 264 5.20 The Six-Point Formula 265 5.21 The Mulki Rules Repeal Act, 1973 266 5.22 The Constitution (Thirty-Second Amendment) Act, 1973 267 5.23 Article 371-D of the Constitution 267 5.24 Presidential Order 268 5.25 The Government Orders issued Post-Presidential Order: 1975- 1985 270 5.26 The One Man (J.M. Girglani) Commission 271 5.27 Implementation of the One Man Commission Report 278 5.28 Repatriation of Non-Locals 280 5.29 Status of implementation of the Presidential Order and G.O. Ms. No 610 281 5.30 The Issue of Exclusion of Certain Posts from the Presidential Order: The Supreme Court Order of 2009 281 5.31 Further action taken on the Supreme Court Order 285 5.32 Summing up 291 5 _________________________________ PUBLIC EMPLOYMENT ISSUES 5.1 Introduction 5.1.01 The origin of the demand for protecting the residents of Telangana region in the matter of public employment is an old one. It dates back to the year 1919, when the Nizam of Hyderabad issued a Firman (edict), the objective of which was to provide for a residential qualification for recruitment to public services. The Mulki Rules, described hereinafter, and the residential qualification enshrined in them or in other enactments, had a chequered history and the impact of political, constitutional and legal events, during the period 1947-1975, made the issue quite complex. Over the years, there has been a perceived sense of discrimination in the Telangana region with regard to appointments in Government, making the issue highly emotional. In order to understand how the subject of reservation in public employment and educational institutions has evolved, as well as to analyse the implementation of the various decisions and actions taken by the state government, the Committee decided to commission a technical study on the subject. After due consideration, the Committee awarded the study to Shri Mukesh Kacker, a senior retired IAS officer and at present Director General, Institute for Regulation & Competition, New Delhi. 5.1.02 In order to get a first hand understanding, the Committee, interalia, held wide ranging consultations with all stakeholders, including political parties, NGOs, advocates and state government officials. The discussion and findings in this Chapter are based on the analysis of various memoranda submitted to the Committee, interactions held with all the concerned groups at the state level and during the Committee.s visits to districts and villages and, also, on the report given by the expert. 5.2 Constitutional, administrative and legal events relating to Mulki Rules and the issue of Residential Qualification in Public Employment 5.2.01 The Mulki Rules (“Rules”), 1919-1959: The Mulki Rules formed part of the Hyderabad Civil Service Regulations promulgated in obedience to the Nizam.s Firman, dated 25th Ramzan 1337 H (corresponding to the year 1919). In the Urdu language, “Mulk” means a nation and the residents are referred to as “Mulkis”. The Mulki Rules prescribed the policy to protect the interest of the “residents” with respect to public employment. As per Appendix-N of Article 39 of these Rules1, a person could be called a Mulki, if: 1 Appendix N of Article 39 . By birth he was a subject of the Hyderabad State, or . By residence in the Hyderabad state, he had been entitled to be a Mulki, or . His father having completed 15 years of service was in the Government service at the time of his birth, or . She was the wife of a person who was a Mulki. 5.2.02 A person was considered a subject of the Hyderabad state by birth if at the time of his birth his father was a Mulki. 5.2.03 The other additional criteria whereby a person could be considered as a Mulki were as follows: . A person could be called a Mulki if he was a permanent resident of the Hyderabad state for at least 15 years and had abandoned the idea of returning to the place of his residence and had obtained an affidavit to that effect on a prescribed form attested by a Magistrate. . If a Mulki woman married a non-Mulki but continued to reside in the Hyderabad state, her rights by virtue of being a Mulki remained unaffected. . If a Mulki woman after her marriage to a non-Mulki resided outside the Hyderabad state but after her husband.s death or after seeking divorce she came back to reside in the Hyderabad state, then she would be considered a Mulki. However, her children would continue to be non- Mulkis unless otherwise permissible under the Rules. 5.2.04 The Taluqdars of the concerned districts were authorized to issue the Mulki certificate. An applicant could apply for a certificate in a prescribed form along with a declaration on oath that the facts stated in the application were true and correct. An applicant was required to address certain questions, some of which were as follows2: 2 Rule 7 of Appendix N of Article 39 3 Rule 9 of Appendix N of Article 39 . Where was the applicant born? . Where was he residing prior to his residing in the Hyderabad State? . Place of birth and nationality of his father and grandfather. . Place of education of the applicant.s father. . Where was the father of the applicant residing at the time of the applicant.s birth and after completing his 21st year? 5.2.05 If any of the facts stated in the application were found to be false or wrong, action could be taken against the applicant that included – (a) cancellation of the Mulki certificate; and (b) cancellation of the Mulki certificates of the father or the husband of such a person. A Mulki certificate could also be cancelled if it was found that the holder of the certificate was disloyal to HEH the Nizam, or to the Hyderabad Government, or was directly or indirectly connected with political activities detrimental to the interest of the Hyderabad Government.3 The original Mulki Rules, therefore, were akin to Nationality rules and were designed to benefit the original/long residing residents of the area by combining three separate criteria - birth, descent and long residence (15 Years). In November 1949, the Nizam, by another Firman, confirmed the provisions relating to the Mulki Rules for purposes of appointment to posts under the Government. 5.2.06 Various Laws enacted to replace the Mulki Rules The Constitution of India came into force on January 26, 1950. The Constituent Assembly, while guaranteeing fundamental rights in the matter of employment under the State, took notice of the disparity in the development of various states/ regions and felt it imperative to continue protection in the matter of employment afforded on the basis of residence within the state through any law which was in force immediately before the commencement of the Constitution. Article 35(b) of the Constitution provides for the continuance of such laws. It follows, therefore, that the Mulki Rules which prescribed requirements as to residence in matters of public employment within the whole of Hyderabad state were saved and continued in force by Article 35(b). Thereafter, the Government of Hyderabad made attempts to safeguard and apply the Mulki Rules in the state of Hyderabad by suitably adapting/ amending them, so that they were in conformity with the requirements of Article 35(b). An explanation, as stated below, was inserted in the Appendix N of the Hyderabad Civil Service Regulations. Explanation: the above Mulki Rules shall be read in conjunction with the clarifications contained in the following circular letters and Notification issued by the Government of Hyderabad in the General Administration Department. 5.2.07 One of the circular letters dated June 14, 1950 briefly stated “…Government is now advised that the Mulki Rules are save(d) to the extent of their inconsistency with the Constitution of India saved by Clause (b) of Article 35. It is, therefore, necessary to put out of operation the requirements laid down by the Mulki Rules to the extent that they prescribe qualifications regarding Birth and Descent…” Another circular dated September 18, 1951, stated that the Government had decided that “the period of Fifteen Years Residence prescribed in the existing Mulki Rules should be „continuous. with the proviso that periods spent outside the State for educational or medical purposes will not count as a „break. in this period of 15 years, where permanent residence has been and continues to be in Hyderabad State.” 5.2.08 Thus, the adapted/ amended Mulki Rules now did not have the birth and descent criteria and had the sole criterion of 15 years of continuous residence in the state of Hyderabad. 5.2.09 In 1955, the Rajpramukh of Hyderabad framed the Hyderabad General Recruitment Rules, in supersession of all previous rules and orders on the subject of prescribing, inter alia, requirement as to residence for the purpose of employment under the state Go