A year after their formation, the States of Telangana and Andhra Pradesh continue to grapple with resource-sharing issues with respect to power, water and other assets. Andhra Pradesh without the revenue flow from Hyderabad (which accounted for 22 per cent of the total revenue of the undivided State) is in dire financial straits as the special status promised by the previous UPA government has proved to be elusive. As an ally of the BJP at the Centre, the Telugu Desam Party that rules Andhra Pradesh is hoping for a special financial grant. But that too appears to be a distant dream today as too many States are in the queue seeking such packages. As in the case of similar disputes among other States, water-sharing remains a contentious issue. While the people at large are reconciled to the post-bifurcation reality, it is the political grandstanding of the two governments that is really coming in the way of a harmonious coexistence between the two. For instance, the Telangana government in April went ahead and imposed its own motor vehicle tax, unmindful of concerns on the other side. Every single issue — be it the division of the secretariat premises, public sector institutions, State cadre officers or the High Court — has become a bone of contention.
Each time there has been a dispute, the two States have knocked on the doors of the Centre seeking mediation. But the truth is that beyond trying the persuasion route, New Delhi can do precious little on any of it. Andhra Pradesh has to find ways to mobilise resources to fund its ambitious infrastructure projects. Besides securing the promised quantum of funds from the Centre, Chief Minister N. Chandrababu Naidu has to explore the possibility of accessing funds from private and external sources to realise plans for the development of a capital region, and to build airports, seaports and smart cities. Hyderabad being retained as an integral part of Telangana has made all the difference for both States in terms of revenues, as it accounts for 99 per cent of the total IT and ITeS exports from the two States. The stark reality is reflected in the 2014-15 and 2015-16 budgets of the two governments. Telangana registered a revenue surplus of Rs.301 crore and Rs.531 crore, while Andhra Pradesh ended up with a deficit of Rs.6,064 crore and Rs.7,300 crore respectively. However, the challenge for the Telangana Rashtra Samiti government led by K. Chandrasekhar Rao is to ensure progress all across the State, particularly in the districts of Warangal, Adilabad, Karimnagar and Nizamabad, which have historically seen hardly any progress on the manufacturing front. The hinterland’s mainstay is in mining, poultry, food processing, dairy and farming. The way forward is to put behind the distrust and bitterness that preceded the bifurcation process, and get down to the real issues.
