The capital issue between Telangana and Andhra Pradesh has again come to the fore, with the June 2, 2024 deadline set by the Andhra Pradesh Reorganisation Act, 2014 for Hyderabad to be the joint capital of the two states fast approaching.

At the moment, Andhra Pradesh is yet to have a capital city, with the Y S Jagan Mohan Reddy-led YSRCP government’s three-capital proposal failing to take off.

Both the YSRCP and the Opposition TDP have been raking up the issue in their campaign for the simultaneous Assembly and Lok Sabha polls scheduled for May 13.

While the TDP says it would continue on its path of developing Amaravati — its chosen capital when it came to power in 2014 — should it come to power, the YSRCP has stuck to its three-capital pledge.

Meanwhile, the Bharat Rashtra Samiti (BRS) in Telangana has added a fresh twist to the issue.

Recently, senior BRS leader and ex-minister K T Rama Rao claimed that if the BJP-led NDA returns to power at the Centre, it may amend the AP Reorganisation Act and turn Hyderabad into a Union Territory (UT).

What is AP Reorganisation Act?

After a prolonged struggle for a separate state, Andhra Pradesh was bifurcated to create a separate state of Telangana in 2014.

The AP Reorganisation Act says: “On and from the appointed day, Hyderabad in the existing State of Andhra Pradesh, shall be the common capital of the State of Telangana and the State of Andhra Pradesh for such period not exceeding ten years.”

It adds: “After expiry of the period… Hyderabad shall be the capital of the State of Telangana and there shall be a new capital for the State of Andhra Pradesh.”

As per the Act, Hyderabad will cease to be the joint capital of the two states from June 3.

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TDP’s plan for Amaravati

In the elections held after the bifurcation exercise in May 2014, the N Chandrababu Naidu-led TDP came to power, winning 106 of the 175 seats in Andhra Pradesh.

Naidu planned to make Amaravati in the Guntur district as the new capital city.

His government proposed the setting up of a “world-class capital” in Amaravati and began land acquisition for it under the AP Capital Development Region (APCDR) proposal involving 29 villages surrounding the town.

According to unofficial estimates, about 33,000 acres of land was pooled from these villages falling in Guntur and NTR (formerly Krishna) districts. The foundation stone for the capital was laid by Prime Minister Narendra Modi in October 2015.

What happened after YSRCP came to power?

After storming to power in May 2019, winning 151 seats, Jagan floated the idea of “decentralised development”.

In January 2020, the YSRCP government passed The Andhra Pradesh Decentralisation and Equal Development of All Regions Bill, 2020, paving the way for three capitals for the state.

Amaravati was decided to be the legislative capital, while Visakhapatnam was to be the executive capital and Kurnool the judicial capital.

The YSRCP has argued that it is against building one mega capital while neglecting other parts of the state. “We do not want to develop one area utilising all our available financial resources while other areas suffer due to lack of funds,” Jagan had told The Indian Express earlier.

What happened afterwards?

The YSRCP government’s plan ran into difficulties. Hundreds of farmers who had given up their lands for the development of the capital city at Amaravati under the previous TDP regime – who had organised themselves under the banner of the Rajdhani Rythu Parirakshana Samithi – filed petitions in the Andhra Pradesh High Court, challenging the government’s decentralisation decision.

Caught in legal tangles, the state government decided to scrap the decentralisation law in November 2021, with the CM stating in the Assembly that the government would introduce a “better” and “comprehensive” Bill after plugging the loopholes in the previous version. He did not mention any timeframe.

Despite the repealing of the three-capital Act, however, the Jagan government has continued to pitch for the decentralisation plan.

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What have the courts said?

On March 3, 2022, the Andhra Pradesh High Court, which had taken up the petitions of farmers who had given land for Amaravati, directed the state government to develop the (erstwhile) proposed capital as envisaged under the previous TDP government, and set a deadline of six months to develop the city.

The YSRCP government challenged the high court’s order in the Supreme Court, which stayed it.

The matter has been pending in the apex court, even as the question of what happens to the farmers and the assets already developed at Amaravati remains open.

Meanwhile, the Jagan government has been pushing for its decentralisation plan.

Jagan announced on January 31 this year that Visakhapatnam will be the new executive capital. This found a place in the YSRCP’s manifesto.

What will happen after June 2?

If Jagan or Naidu clinches the Assembly polls, what happens to their respective three-capital proposal or Amaravati plan remain to be seen. The outcome of the polls, scheduled for June 4, will have a crucial bearing on the issue.

Meanwhile, on May 7, Jagan, in his campaign, said he would develop Visakhapatnam as the executive capital and that his “swearing-in ceremony” would be held in Visakhapatnam, adding that his government would invest Rs 1.05 lakh crore to develop it into a global city.


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