Nineteenth Century politics over Telangana

To understand the tumult in Andhra Pradesh now, one should imagine what would happen in Tamil Nadu if a new state of North Tamil Nadu, along with Chennai, is carved out; or the consternation in Karnataka if South Karnataka with Bengaluru is carved out as a separate State.

For the first time, a region with a large capital city wants to separate as a State. So far, every demand for a new State has been from far-flung areas away from the State capital. Hyderabad is not just another city. It is on par with Chennai and Bengaluru, and with 85 lakh people, accounts for over 25 per cent of the population of Telangana and 60 per cent of the economy of the region. Millions from all over the country and the various regions of AP have made it their home.

Every significant political, business or civil society leader has made Hyderabad home, and is emotionally attached to the city, even if the political base may be elsewhere. In such a situation, the all-too-casual approach to separate Statehood is calamitous.

Losing resources

There are serious economic issues to be examined on the issue of carving out a separate State in Andhra Pradesh. First, the capital city is a serious bone of contention, and once people and investors lose faith in the future, it will decline rapidly.

This will hurt both Andhra Pradesh and India, because large cities are now important clusters of growth, and if a Mumbai or Delhi faces economic hardship, the whole nation will be impacted by the fallout.

Second, parts of the coastal region are agriculturally well-developed and have resources and surpluses. For instance, the coastal region generates surplus revenues in the power sector, and is subsidising power for farmers in Telangana and Rayalaseema. A separate State will be burdened by an unviable power sector.

Costal regions are always engines of growth all over the world. Telangana is land-locked, and losing the costal region would retard growth and opportunities. Again, this is the first time a land-locked region is seeking to separate from the coastal belt. When passions subside, the pain and deprivation will be felt.

Water resources are always a bone of contention in a monsoon-fed country. Even in a relatively well-managed city of Mumbai, enjoying abundant rainfall on the West coast, water riots took a life recently. In a water-starved region, river water disputes will escalate, and sharing of Krishna and Godavari waters will be a nightmare.

In the K-G basin off the Andhra coast, abundant natural gas reserves have recently been found, and are being tapped. Already, there is the challenge of sharing natural resources between the home State and the rest of India, and now Telangana will be further depleted.

Large, unviable lift irrigation projects — at a capital cost of Rs 3-4 lakh per acre and Rs 40,000 per year per acre maintenance cost — have been unwisely proposed in Telangana. They will be a permanent drain on the economy of the region, undermining it without ensuring benefits.

Politics of inclusion

Poverty, backwardness, corruption, lack of opportunity and unemployment are endemic to many of the country's States and sub-regions. These are caused by failed policies, misgovernance and the politics of plunder, leading to kleptocracy.

Large parts of Telangana and Rayalaseema, most of north coastal Andhra Pradesh, upland areas of delta districts, and many families suffering discrimination by birth in every village — all of them are victims of terrible misgovernance and political failure.

The perpetuation of poverty and under-development is largely the result of the plunder of local politicians and bureaucrats. A change of the State's name or boundaries or capital will not alter anything.

The need of the hour is to accelerate growth and promote equity and opportunities. What every sub-region of Andhra Pradesh, indeed every part of India, needs is empowerment of people, district governments and third-tier of federalism to help people fulfil their potential.

We cannot use 19^th century notions of divisive politics in a 21^th century world

Source: The HINDU