Andhra Pradesh(AP) State Reorganization Bill, 2014

Andhra Pradesh(AP) State Reorganization Bill, 2014 Highlights

  • AP State Reorganisation Bill, 2014 was passed by both the Houses of Parliament and is awaiting the ascent of President of India.
  • Telangana and residuary Andhra Pradesh will be two States from the appointed day notified by the Central Government.
  • Preparatory work relating to personnel, finance and distribution of assets and liabilities is to be completed satisfactorily between the notified date and appointed date.
  • We can learn from the experience of and not repeat the mistakes done during division of 3 States in 2000 

Common Capital

  • GHMC area of Hyderabad would be the common capital for a 
    period not more than 10 years 
  • All departments to list out offices under them and divide 
    amongst the successor States 
  • Principle: HQs, which serve both the parts, would be divided 
    on population ratio - Andhra Pradesh: Telangana = 58.32 : 
    41.68 or 1:0.72 
  • Management and allocation would be done by Governor
  • R & B department to coordinate this activity 
Common Governor
  • Both States to have a common Governor 
    Responsible for law and order, internal security and security 
    of vital installations 
  • Governor would be assisted by two advisors appointed by 
    the Central Government and can exercise independent 
    judgment in respect of subjects allotted 
  • Guidelines have to be obtained from MHA, GoI 
  • GAD to coordinate this activity
Police Forces
  • GoI would provide assistance to raise additional forces 
  • Greyhounds Training Center would be maintained and 
    administered by GoI for three years 
  • New training center for residuary AP would be established 
  • New operational hubs in both States 
  • Greyhounds and OCTOPUS forces to be divided based on options 
    of the personnel who would function under respective DGPs 
  • Home department to coordinate this activity
Reorganization of Legislatures

Andhra Pradesh
Council of States 
House of People
Legislative Assembly
Legislative Council
SC and ST Orders

  • The Constitution (Scheduled Castes) Order stands amended as per the Fifth Schedule of the Act 
  • Social Welfare department to issue necessary  orders and executive  instructions 
  • The Constitution (Scheduled Tribes) Order stands amended as per the Sixth  Schedule of the Act 
  • Tribal Welfare department to issue necessary orders and executive  instructions 
High Court
  • High court at Hyderabad would be common High Court till a separate High court is established for Andhra Pradesh 
  • The expenditure in respect of salaries and allowances of judges is to be allocated on the basis of population ratio – Finance department to take necessary action 
  • Advocates on the roll of the Bar Council can get his name enrolled on the roll of Telangana Bar Council by option 
Special Development Package 
  • The Central Government may make appropriate grants, provide adequate benefits and incentives in the form of special development package for the successor State of Andhra Pradesh 
  • Rayalaseema and north coastal regions are specifically identified for the development package 
  • Appropriate fiscal measures are proposed such as tax incentives to promote industrialization and economic growth in both States along the lines extended to some other States   
  • The measures to ensure expansion of physical and social infrastructure 
  • A special category status is announced by the Prime Minster for the successor State of Andhra Pradesh for a period of five years 
  • The above package will be on the lines of K-B-K (Koraput-Bolangir-Kalahandi) special plan in Odisha and Bundelkahand special package in MP / UP 
  • Planning department to study the packages and prepare proposals accordingly in the next two weeks 
Assets and Liabilities apportionment
  • Item – Treasury and bank balances, investments and credits in Schedule VII funds -69, public and floating debt, refund of excess taxes, pensions, PF 
  • Principle – Population ratio, location if the tax is on property or place of assessment for other taxes, geographical area for calamity relief fund, purpose and benefits in case of debt, pensions as per Schedule VIII 
  • Finance department to take up the appropriation exercise based on the principles in the Act  
  • Item – Land (all immovable properties), goods, stores 
  • Principle – location , if outside existing Andhra Pradesh then population, location - stores held for specific purpose ; Secretariat and HOD offices – population 
  • All departments to make an inventory of land, goods and stores  
  • Coordinating departments – Secretariat – GAD; all others – R & B ; requested to develop a common format, gather  and authenticate information and take up apportionment – review within two weeks  
  • Item – Investments in private, commercial and industrial undertakings, body corporate, State Undertakings, 89 companies of Schedule IX
  • Principle – If the object of the undertaking is confined to one area then location or else population
  • Principle – If the undertaking or part thereof is exclusively located in one area then it shall pass on to such an area irrespective of HQ location;
  • If inter –state, then operational units would be based on location and HQs would be based on population 
  • Transfer can be in physical form or any other mode mutually agreed 
  • All departments to take up this exercise – Industries and Commerce department would develop guidelines, formats and would co-ordinate this exercise – necessary experts may be hired – visits to the 3 states   
  • Item – Contracts Principle – If the purpose of the contract is for the exclusive purpose of either of the successor States then it would belong to that State  OR
  • Principle – the rights and liabilities are to be apportioned based on population or in any manner mutually agreed upon 
  • All departments to take up this exercise – Irrigation and CAD  department would develop guidelines, formats and would co-ordinate this exercise – necessary legal and contract experts may be hired – visits to the 3 states  to understand implementation issues  
Continuation of facilities in state institutions
  • Item – 107 centers and institutions listed in Schedule X
  • Principle – Depending on the location, the Government of that area has to make sure that these institutions continue to provide facilities to the people of other successor State 
  • The terms and conditions of such service have to be agreed between the successor States within one year of appointed date 
  • All departments to take up this exercise – Spl. CS (planning)   would develop guidelines, formats , agreements and would co-ordinate this exercise – necessary legal and contracts help may be taken  – visits to the 3 states  to understand implementation issues  
Services of employees
  • There would be two separate cadres of AIS (IAS, IPS and IFS) officers on and from the appointed day
  • The strength, composition and allocation would be determined by the Central Government 
  • DoPT has gathered certain information about AIS officers based on the Service Registers / Dossiers/ UPSC application forms 
  • An advisory committee would be appointed to draw up guidelines and take up the allocation exercise 
  • HRMS application has gathered information about all employees – 11,09,989 employee information is available
  • The employees of local, district, zonal and multi-zonal cadres which fall entirely in one of the successor States are deemed to be allotted to that State 
  • The State Cadre employees and multi-zonal employees who are overlapping between the successor States have to be allocated  
  • The employees would be allocated based on option  
  • An advisory committee would be appointed to draw up detailed guidelines and take up the allocation of posts and staff exercise   
  • Till allocation is done, employees continue in the same post 
  • Exercise to be coordinated by GAD 
Water Resources 
  • Two separate Boards would be created by the Central Government for Krishna and Godavari Rivers to look after administration,  regulation, maintenance and operation of notified projects within 60 days of appointed day 
  • Chairman and one expert would be nominated by GoI 
  • Each State has to  nominate one member 
  • Functions – regulation of supply of water, power, construction of on-going or new projects, appraisal and technical clearance of new projects 
  • Funding from successor States in proportion to benefit 
  • Irrigation department to study the working of similar boards which are in operation elsewhere in the country 
  • Of the total equity of Singareni Collieries Company Limited (SCCL), 49% would be with GoI and 51% would be with Telangana 
  • Units of APGENCO and assets of  APTRANSCO would be divided on location 
  • Existing PPAs would continue
  • APERC would be common for six  months within which period separate ERCs would be formed 
  • SLDC would be common for two years and would be under RLDC Bengaluru 
  • Central Generating Stations power would be allotted on actual energy consumption of the last five years 
  • Energy department to issue guidelines for making proviosns of Schedule XII of the act operational 
New Capital 
  • An expert committee is be constituted by GoI to study various alternatives for new capital and make a recommendation within six months 
  • Central Government would provide financial support for creation new capital 
  • If required,   degraded forest land would be de-notified 
  • Urban planning, transportation, finance experts need to study alternatives and furnish the information to the expert committee 
  • CGG would provide the necessary technical support 
Higher Education 
  • Admission to aided or unaided institutions of higher, technical and medical education would be common for ten years 
  • Quotas under article 371-D would also continue
  • Education and Health departments to issue necessary instructions