Andhra Pradesh to come under central rule; Telangana awaits President's nod

The undivided Andhra Pradesh will soon be brought under central rule after chief minister Kiran Kumar Reddy resigned in the wake of Parliament passing the bill to create a separate Telangana state out of Andhra Pradesh.

Reddy put in his papers yesterday, although he failed to come up with a new party as promised.

The Rajya Sabha on Thursday approved the Andhra Pradesh Reorganisation Bill 2014, after the Lok Sabha passed the bill on Tuesday, paving the way for formally declaring Telangana as the country's 29th state after the bill gets Presidential assent.

Andhra Pradesh governor ESL Narasimhan has recommended imposition of central rule after the resignation of chief minister N Kiran Kumar Reddy over the issue of state's bifurcation.

However, it is not clear whether Narasimhan has recommended dissolution of the state assembly or to keep the House under suspended animation.

According to reports, the imposition of President's rule will ensure smooth bifurcation of Andhra Pradesh into two states. It is also likely that the assembly elections may be postponed and held in the two separate states, sources say.

However, reports also say there could still be hurdles as the bill might be challenged in the courts. Also, other issues like the judicial framework in the two states, which has to be decided by the Supreme Court, are to be taken up before two separate states come into existence.

The notification on Telangana to be issued by the President is likely to come out on 21 or 22 February.

A decision on imposition of central rule in Andhra Pradesh is expected to be taken up in the next meeting of the union cabinet, which will then be recommended to the President.

Prime Minister Manmohan Singh, meanwhile, announced a special package for Seemandhra and declared grant of special category status, including tax incentives to the residuary state which will comprise 13 districts, as part of a six-point development package for AP's two successor states.

The bill itself stipulates that the central government will take appropriate fiscal measures, including offer of tax incentives to the successor states in order to promote industrialisation and economic growth in both the states.

The development package will be on the lines of the K-B-K (Koraput-Bolangir-Kalahandi) Special Plan in Odisha and the Bundelkhand special package in Madhya Pradesh and Uttar Pradesh.

He also assured members of Parliament that the UPA government will execute the Polavaram project at the earliest.

The formation of the new state will be fixed in relation to the notified date so as to enable preparatory work relating to personnel, finance and distribution of assets and liabilities to be completed satisfactorily, the prime minister said.