Cabinet approves creation of Telangana as 29th state

Overcoming stiff resistance from Seemandhra leaders and Ministers from Congress, the Union Cabinet today decided to go ahead with creation of Telangana from out of Andhra Pradesh taking the first legal step for forming the 29th state, stoking protests from at least two ministers who offered to resign.
Union HRD Minister Pallam Raju and Filmstar-turned- politician and Tourism Minister Chiranjeevi tonight offered to quit protesting the Cabinet decision. Chiranjeevi has faxed his offer to resign to the Prime Minister's Office, his personal assistant said.
The meeting of the Cabinet presided by Prime Minister Manmohan Singh also decided that Hyderabad will be the joint capital of the two states for 10 years.

Over two months after the Congress Working Committee put its seal of approval, the Cabinet approved the proposal of the Home Ministry for creation of the 29th state and decided to set up a Group of Ministers (GoM) to work out the modalities.
"The Cabinet has given its approval for the creation of a new state of Telangana," Home Minister Sushilkumar Shinde told reporters after the meeting that lasted more than two hours.
He said it was decided that Hyderabad will be the common capital of the two bifucated states for 10 years.

After the creation of the new state, the security and guarantees including fundamental rights of the people of coastal Andhra, Rayalaseema and Telangana will be ensured, he said.

The Cabinet approved a GoM that will go into the issue of a special financial disbursement that may be required from the central government for the residuary state of Andhra Pradesh, for building its capital and to cater to special needs of the backward regions.
Prime Minister Singh set the tone for the meeting saying Telangana statehood is a commitment that the Centre has given and it has to be implemented. He later asked the ministers present to give their opinions.
At the meeting, Ministers M M Pallam Raju and K S Rao--who are from coastal Andhra-- opposed bifurcation of the state. They are believed to have said it will lead to problems and also that the residuary state will be deprived of a well developed capital like Hyderabad.

Also, they said Telangana being a upper riparian region the residuary state will have to be at the mercy of the new state on the issue of water resources.
S Jaipal Reddy, who is from Telangana, supported the move.
Sharad Pawar and Ajit Singh--leaders of UPA allies NCP and RLD--while favouring creation of smaller states gave their support for Telangana statehood. Jairam Ramesh, a Rajya Sabha MP from AP, backed the move, saying the Centre's commitment must be fulfilled.
The new state will have a geographical area of 10 of the 23 districts of undivided AP.
Out of 42 Lok Sabha seats and 294 Assembly seats in AP, Telangana is likely to have 17 Lok Sabha seats and 119 Assembly seats.