This Article is From Jun 03, 2014

After The Celebration, The Worries in Telangana

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(Ashok Malik is a columnist and writer living in Delhi)

Whatever the controversies and conflicts of recent years, a new beginning is a new beginning. Telangana's creation as the 29th state of the Union of India has been marked by fervour and celebration in Hyderabad and the people of Telangana are entitled to a moment of satisfaction. Even so, the entire episode has thrown up a few warnings that need to be internalised.

Broadly, three factors raise concern. First, Telangana is a landlocked state with limited irrigation facilities. Unlike landlocked states such as Haryana - fertile, agriculturally rich as well as situated at the doorstep of Delhi and the booming economy of the National Capital Region - it has no obvious advantages of location. Telangana's one asset is the city of Hyderabad.

Hyderabad can be the engine that will drive the rest of Telangana. Grasping politicians can also resort to the equivalent of asset stripping. They can savage the city of its revenue potential, and kill their golden goose. In a sense, the relationship between politicians from the Maharashtra hinterland and the city of Mumbai can serve as a sobering reminder of what may happen if this equation goes wrong. It is for the new government of the Telangana Rashtra Samiti to be fair to both Hyderabad - one of India's largest, most well-endowed cities - and the rest of Telangana.

Second, Seemandhra, with its richer agricultural capacities, with its coast and its entrepreneurial wealth, is potentially better placed than Telangana. In the coming years, the government of N Chandrababu Naidu is probably going to build a spanking new capital in Mangalagiri, which lies between Guntur and Vijayawada. Many senior Andhra politicians - including leading lights of the erstwhile Congress, influential Kammas who dominate the Telugu Desam and others who are linked with the state's many infrastructure companies - have made investments and built land banks in what could become the Mangalagiri metropolitan area.

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Creating a modern city and a capital is a wonderful idea in a country that has done so little by way of urban renewal and upgrade. Yet, there is a fear that the re-imagining of Mangalagiri-Guntur-Vijayawada, the building of new legislature and secretariat, a capacious airport and so on, could become a gigantic public-spending scandal and consume more time and resources than would be warranted. Again, it is for Naidu, returning as chief minister after a decade, to ensure his fresh term is not hijacked by the capital development project.

Finally, the movement for Telangana, the ham-handed response of the UPA government in 2009 and the subsequent cynicism with which it approached a solution, offer a message for all political parties. In the recent elections, the Congress was wiped out in Seemandhra - zero parliamentary seats and zero assembly seats - and finished a distant second in Telangana. With the social fires the UPA government lit, Telangana became symbolic of how not to partition a state.

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This is not the final statehood demand in India. From Vidarbha in Maharashtra to the idea of four daughter provinces in Uttar Pradesh, there are many others that deserve serious consideration. In addition, there are less salient demands from states as far apart as West Bengal and Rajasthan.

While political, regional and ethnic/identity parameters have been considered for state formation, it is time to look at economic and fiscal sustainability as well. Where necessary, creative mechanisms and innovations can be designed to address economic gaps that may arise as a consequence of drawing new state boundaries.

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Telangana could face challenges in this regard. Bereft of clientele from Seemandhara, particularly if Mangalagiri gets an international airport in the near future, how viable is the Hyderabad airport? On the other hand, couldn't landlocked Telangana have gained from a preferential relationship with Vishakapatnam port, which is now in another state?

These questions require deeper thinking. Much before we set up another State Reorganisation Commission to actually create new states, we need a commission to decide on economic parameters and criteria for state formation.

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