The bifurcation of Andhra Pradesh into two states, Telangana and Andhra Pradesh, has led to ongoing disputes regarding the division of assets and liabilities. Recently, the Central government has intensified efforts to address these issues. The Union Home Secretary, Govind Mohan, has initiated a series of meetings aimed at resolving the pending bifurcation matters. These meetings will occur bi-monthly, ensuring a structured approach to the negotiations.
Background of Bifurcation
The bifurcation of Andhra Pradesh occurred in 2014, creating Telangana as a separate state. This division resulted in numerous challenges regarding the distribution of resources, institutions, and financial liabilities. The Reorganisation Act of 2014 laid the groundwork for this process but left many issues unresolved.
Key Issues Discussed
- The main topics of discussion include the division of Schedule IX and X institutions.
- Schedule IX pertains to certain statutory bodies while Schedule X includes institutions not explicitly mentioned in the Act.
- Andhra Pradesh has raised concerns about the lack of clarity in defining the headquarters for asset apportionment.
- Telangana officials have countered these claims, referencing the Home Ministry’s previous orders.
Agreements and Disagreements
A broad agreement was reached regarding the division of 53 institutions. However, Andhra Pradesh opposed 15 recommendations made by the Sheila Bhide committee. In contrast, Telangana expressed reservations about 23 recommendations. The differences highlight the complexities involved in the bifurcation process.
Future Steps Proposed
The Union Home Secretary has encouraged both states to begin the process of apportioning the agreed-upon institutions. This includes consulting relevant Central government departments to expedite the resolution of issues related to Schedule XIII of the Reorganisation Act. This schedule addresses the establishment of institutions of national importance and infrastructure development.
Pending Financial Issues
Several financial matters remain unresolved. These include the division of the erstwhile Andhra Pradesh State Finance Corporation and the apportionment of funds related to Centrally Sponsored Schemes. Additionally, the reimbursement of expenses incurred by Telangana for maintaining common institutions is under discussion. The allocation of public debt from externally aided projects also requires resolution.
Questions for UPSC:
- Critically analyse the impact of bifurcation on the socio-economic landscape of Andhra Pradesh and Telangana.
- What are the key provisions of the Andhra Pradesh Reorganisation Act, 2014? Explain their significance in the bifurcation process.
- What are the challenges faced in the division of financial assets between Telangana and Andhra Pradesh? Point out the main areas of contention.
- With suitable examples, comment on the role of Central government in resolving state bifurcation issues in India.
Answer Hints:
1. Critically analyse the impact of bifurcation on the socio-economic landscape of Andhra Pradesh and Telangana.
- Economic disparity – Post-bifurcation, Telangana has seen rapid economic growth, while Andhra Pradesh struggles with revenue deficits.
- Social dynamics – Migration patterns have shifted, with many seeking opportunities in Telangana, affecting demographics in both states.
- Infrastructure development – Telangana has focused on urban development and IT sectors, while Andhra Pradesh is working to build new capital and infrastructure.
- Employment challenges – Job creation has been uneven, with Telangana attracting more investments compared to Andhra Pradesh.
- Resource allocation – Disputes over resources have led to tensions, impacting cooperative federalism and governance.
2. What are the key provisions of the Andhra Pradesh Reorganisation Act, 2014? Explain their significance in the bifurcation process.
- Creation of Telangana – The Act officially established Telangana as the 29th state of India, addressing long-standing regional demands.
- Division of assets and liabilities – It outlined the framework for sharing resources, institutions, and responsibilities between the two states.
- Schedule IX and X institutions – Specific provisions were made for the division of statutory bodies and undefined institutions, crucial for administrative functions.
- Financial arrangements – The Act included measures for financial support to ensure stability during the transition period.
- Establishment of new institutions – It mandated the creation of institutions of national importance and infrastructure projects to aid development in both states.
3. What are the challenges faced in the division of financial assets between Telangana and Andhra Pradesh? Point out the main areas of contention.
- Ambiguity in asset allocation – Lack of clarity in defining headquarters for asset distribution has led to disputes.
- Disagreement on valuations – Differing opinions on the value of shared assets and liabilities complicate negotiations.
- Pending financial liabilities – Issues regarding public debt and external aid allocation remain unresolved, adding to tensions.
- Central government funding – Confusion over the apportionment of Centrally Sponsored Schemes and financial support has led to grievances.
- Impact on fiscal health – The division challenges the fiscal stability of both states, affecting their development agendas.
4. With suitable examples, comment on the role of Central government in resolving state bifurcation issues in India.
- Mediation and facilitation – The Central government, through the Union Home Secretary, has initiated regular meetings to address bifurcation issues, promoting dialogue.
- Legislative framework – The Andhra Pradesh Reorganisation Act serves as a legal basis for resolving disputes, showcasing the government’s role in setting clear guidelines.
- Resource allocation – The Central government has provided financial assistance to both states to ensure stability and support development initiatives.
- Conflict resolution – The Home Ministry’s involvement in addressing grievances demonstrates a proactive approach to mitigate tensions between states.
- Encouraging cooperation – By facilitating discussions and consultations, the Central government aims to encourage collaboration and amicable solutions for both states.
