The move to carve out a new state of Telangana triggered violent protests over the weekend and officials said a curfew was imposed for two days in Vizianagaram, one of the 13 districts of coastal Andhra Pradesh where many people are opposed to the state being divided.
Andhra Pradesh is a hub for western IT giants and Google has its Indian headquarters in Hyderabad, its capital. Microsoft and Dell also have offices in the city which will remain the common capital for the two states for 10 years.
Tech companies have largely been unaffected by the protests. The ruling Congress at the Centre approved the creation of Telangana in July. The proposal was finally cleared by the Cabinet on Thursday. Ashok Babu Parchuri, president of a federation representing striking state government employees, said their action had disrupted train services and water supplies and closed hospitals. "Unless we get some political assurance about keeping the state united, we cannot go back," he said. Supporters of the split say the Telangana region's economic development has been neglected in favour of the richer and more powerful coastal region of Andhra.
Critics say the Congress had long resisted calls for the new state and only took the step to win votes in coming elections. The undivided state sent 34 members of Parliament for Congress and its allies in 2009, making it an important political prize. Many government employees have been on strike since August 12, but the protests have escalated since Sunday when electricity workers joined the agitation. Srinivas Ayyadevara president of the Federation of Andhra Pradesh Chambers of Commerce and Industry said supplies and deliveries for businesses were hit by train cancellations and the power outages were disrupting factories.
"This time everything has been affected," Ayyadevara said. "It has eaten into our production schedules," he said, adding that businesses were thinking twice about deals with companies in Andhra Pradesh. "They're now wary of placing orders."
Shinde rules out Prez rule
Amid the violence over granting of statehood to the Telangana region, Union Home Minister Sushilkumar Shinde today ruled out the possibility of imposing President's rule in Andhra Pradesh. "There is no plan under consideration to impose President's rule in Andhra Pradesh. There was no such discussion in today's Cabinet (meeting)," he told reporters here.
The Home Minister said the widespread agitation in Seemandhra was a matter of grave concern to the central government.
He said the government fully respects the sentiments of the people of the region on this sensitive issue.
"I would like to assure the people of Seemandhra that the government of India remains fully committed to address all their concerns, particularly with respect to safeguarding the interests of people living in Telangana," he said.
Shinde said the concerns of Seemandhra people with regard to education and employment opportunities in Hyderabad for the youth, the sharing of river waters and issue of government employees would be taken care of.
"The Group of Ministers will address all these and other issues in a comprehensive manner and will hold detailed consultations with all stake holders," he said.
Cong appeals to people of Seemandhra to give up agitation
The Congress today appealed to people in the Seemandhra region to give up their agitation so that a solution that benefits both sides could be arrived at.
"The Congress party appeals to the people of Seemandhra to give up their agitation so that a healthy dialogue process can move forward and a solution that will benefit both the sides is arrived at", party General Secretary Digvijay Singh said in a statement. Singh is in charge of party affairs in Andhra Pradesh. Maintaining that the party was deeply concerned over the agitation in Seemandhra, Singh said the people of the region are being put to inconvenience because of disruption in power supply and strike by non-gazetted government employees.
Jagan seeks Left support against Telangana creation
Meanwhile, extending support to YSR Congress for a unified Andhra Pradesh, the CPI(M) today said immediate priority was to restore normalcy, as the state was heading towards anarchy due to Centre's "unilateral" decision.
"Today's priority is to restore normalcy in Andhra Pradesh. The Congress party and the Centre should stop taking unilateral decision. And they should bring on board everybody concerned to restore a sense of normalcy," CPI(M) leader Sitaram Yechury said after a meeting with a delegation of the YSR Congress in the national capital.
Seeking support of the CPI(M) against bifurcation of the state, YSR Congress President Jaganmohan's mother Vijayalaxmi and Alagada MLA Sobha Nagreddy along with other party members had met CPI(M) General Secretary Prakash Karat and Yechury and submitted a memorandum.
Expressing concern over the "deteriorating" situation in the southern state, Yechury said, "Now the power grid is virtually broken down. As a result, train movement and communication has totally collapsed. Road transport is on strike. Schools and hospitals are not functioning. All this is leading to a chaotic anarchy and this is very, very damaging." Referring to the meeting with YSR team, he said, "Right now what we have discussed is how to restore normalcy."
Asked whether TDP is moving closer to BJP and YSR to the Left, Yechury said, "I do not think it is alignment or realignment. The primary issue is to restore normalcy in Andhra and if you delay it further you are moving further to the state of anarchy."
Political upheavals at Centre
HRD Minister M M Pallam Raju, who had tendered his resignation over the Telangana issue, today skipped an Union Cabinet meeting.
Raju, along with three other Union ministers from the Seemandhra region had yesterday met Prime Minister Prime Minister Manmohan Singh requesting him to accept their resignations but got no assurance. The minister has stayed away from his office ever since he stepped down last week. He had also skipped official engagements including a meet with the principals of autonomous colleges yesterday.
His close aides were unsure whether he would attend a programme at Rashtrapati Bhawan tomorrow where the President would confer awards on Tamil scholars.