Parliament gives nod to Telangana as 29th state; special category status for Seemandhra

New Delhi: Creation of Telangana as India's 29th state was approved by Parliament Thursday night with Rajya Sabha clearing the contentious bill to split Andhra Pradesh after Congress and BJP came together amid unprecedented bedlam.

In a bid to address concerns of the Seemandhra region, Prime Minister Manmohan Singh announced 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.

Singh, whose intervention was drowned out during vociferous protests by members from Seemandhra region as also from Trinamool Congress and Shiv Sena, said for purposes of Central assistance, the Special Status that will also include tax incentives will be extended for a period of five years.

The Prime Minister made the announcement apparently responding to demands from Seemandhra MPs as well as from BJP for 'justice' to the region.

Congress President Sonia Gandhi's request to the Prime Minister to give the special status to Seemandhra for five years appears to have paved the way for the historic bill's passage and BJP came on board.

After days of mayhem in Parliament, the suspense over the approval of the Andhra Pradesh Reorganisation Bill, 2014 came to an end with BJP backing the government despite raising several concerns. The Lok Sabha approved the bill on Tuesday.

"I hope these additional announcements will demonstrate our steadfast commitment to not just the creation of Telangana but also to the continued prosperity and welfare of Seemandhra," Singh noted. The Bill was passed by voice vote.

A protective cordon was thrown around Singh as well as Home Minister Sushilkumar Shinde by Congress members as members from Seemandhra region as also those from TMC and Shiv Sena stormed the Well with TMC members even tearing papers and throwing them on the floor.

CPI-M members walked out in protest.

"The Bill is passed," Deputy Chairman P.J. Kurien announced, bringing the curtains down on the legislation in Parliament.

Many milestones in the saga of separate Telangana

The House looked like a virtual battle-ground during the five-hour proceedings, which saw seven adjournments as members resorted to slogan shouting and tore papers describing the bill passed by the Lok Sabha as illegal.

The debate also saw the government facing an awkward situation when Union Minister Chiranjeevi, who hails from Seemandhra region, opposed the decision on Telangana inviting ridicule from BJP, which wondered whether a member of the Council of Minister can oppose a decision taken by his own government without resigning from it.

As the bill appeared set to be a reality with most of the amendments moved by the BJP either negatived or withdrawn, CPI-M and Trinamool Congress alleged 'nexus' between the ruling party and the main Opposition.

As soon as the bill was passed, pro-Telangana activists started celebrating in the region. In the national capital, Telangana acvitists were seen bursting crackers outside Parliament and Andhra Bhavan.

Reacting to the passage of the bill, TRS chief K. Chandrasekhar Rao said that he is 'fully satisfied and extremely happy. We are thankful to Sonia Gandhi.'

No match-fixing with Cong on Telangana Bill: BJP

BJP on Thursday rejected allegations there was a 'match fixing' between it and Congress for the passage of Telangana Bill in parliament and hit back at the Left and Trinamool Congress saying till recently they were 'partners in corruption' of UPA government.

"They say there was a match fixing as if BJP was part of UPA government. The Left was an ally in UPA I and TMC was till recently a part of UPA. They were the partners in corruption," BJP leader M. Venkaiah Naidu told reporters here after the passage of the Andhra Pradesh Reorganistion bill.

He said BJP had flagged certain issues, including a special package for Seemandhra region.

"Government tried to satisfy us. There are certain shortcomings in the bill. But they will be recififed after BJP comes to power in the next two months," Naidu said.

TMC, which staged a protest in Rajya Sabha during the debate on the bill, said, "The bill's form and content as passed by the Lok Sabha was illegal."

"We had given a letter to the Rajya Sabha Chairman (Hamid Ansari) this morning mentioning our opposition," said TMC MP Derek O' Brien outside Parliament House.

Trinamool Congress is conerned about the fall out of the Telangana decision on Gorakhaland issue. The hilly region of West Bengal is seeking separate statehood for long.

Similarly in Maharashtra, Shiv Sena has been staunchly oppposed to any division of the state where demands for creation of Vidarbha are raised occassionally.

Next: PM announces 6-point package for successor states of Andhra Pradesh

PM announces 6-point package for successor states of Andhra Pradesh

New Delhi: Prime Minister Manmohan Singh on Thursday announced a six-point development package for successor states of Andhra Pradesh including grant of special category status including tax incentives to Seemandhra.

Announcing a host of measures for the two states, the Prime Minister said amid unprecedented din in Rajya Sabha that tax incentives will be offered to promote industrialisation and economic growth in both the states, on the lines of those extended to some other states.

A protective cordon was thrown around Singh by Congress members as members from Seemandhra region as also those from TMC and Shiv Sena stormed the Well with TMC members even tearing papers and throwing them on the floor.

Intervening in the debate on the crucial Telangana Bill, Singh assured the members that the Centre will execute the Polavaram irrigation project at the earliest.

"Our government will execute the Polavaram project...let there be no doubt about it," Singh said.

He said for purposes of Central assistance, Special Category Status will be extended for a period of five years to the successor state of Andhra Pradesh comprising 13 districts.

These will include the four districts of Rayalaseema and three districts of north coastal Andhra to put the state's finances on a firmer footing, he said.

Singh noted that the Bill already provided for a special development package for backward regions of successor state of Andhra Pradesh, in particular for the districts of Rayalaseema and North Coastal Andhra Pradesh.

He said this development package will be on the lines of the KBK (Koraput-Bolangir-Kalahandi) Special Plan in Odisha and the Bundelkhand special package in Madhya Pradesh and Uttar Pradesh.

The Prime Minister assured that the appointed day for formation of the new state will be so 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.

"I hope these additional announcements will demonstrate our steadfast commitment to not just the creation of Telangana but also to the continued prosperity and welfare of Seemandhra," Singh noted.

The Prime Minister noted that the resource gap arising in the successor state of Andhra Pradesh in the very first year will be compensated in the Regular Union Budget for 2014-15.

This gap may arise during the period between the appointed day and the acceptance of the 14th Finance Commission recommendations by the Government of India.

Singh said he has listened carefully to views expressed by the Leader of Opposition and all other members, especially from Andhra Pradesh and the Home Minister has already mentioned specific steps the Government will take to address concerns of all regions of the state, particularly of Seemandhra.