With an aim to cool down tempers in the Seemandhra region, the government has promised in the Telangana Bill selection of a capital of residuary Andhra Pradesh within 45 days and tax incentives to promote its economic growth. The controversial Andhra Pradesh Reorganisation Bill, which was introduced by Home Minister Sushilkumar Shinde in Lok Sabha today amidst chaos, envisages that Hyderabad will be the common capital of Telangana and Seemandhra for ten years.
The Centre will set up an apex council for the supervision of the Krishna and Godavari rivers management boards, amidst concerns about water problems if the state is divided. The common capital includes the existing area notified as Greater Hyderabad Municipal Corporation and the central government shall constitute an expert committee to give suggestions for a new capital of residuary Andhra Pradesh within 45 days.
The Centre has also tried to address the grievances of the Seemandhra region by promising to take appropriate fiscal measures, including offer of tax incentives to the successor states, to promote industrialisation and economic growth in both states. The central government will provide special financial support for creation of essential facilities in the new capital of the successor state of Andhra Pradesh, including the Raj Bhavan, High Court, government secretariat, Legislative Assembly, Legislative Council and such other essential infrastructure.
The Union government will also facilitate creation of a new capital for the successor state of Andhra Pradesh, if considered necessary, by denotifying degraded forest land. The Andhra Pradesh Governor will be the Governor for both the successor states of Andhra Pradesh and Telangana and for the purpose of administration of the capital area, the Governor shall have special responsibility for security of life and property of all those who live in it.